BANKING
“ Now we ' re seeing the ability to consolidate lots of different data points from different sources and they can make a smarter decision about offering credit ”
make a smarter decision about offering credit . The advancement of technology , particularly AI , particularly the access to data , can actually be making smarter decisions .”
The incumbent challenge But how do incumbents fit into this Brave New World of data-driven finance , cryptocurrency and mobile services ? Many of them were established decades ago , and therefore must function with their embedded , core processes that are at odds with the shiny new digital trends .
One way has been to build a digital version of themselves that operates alongside the traditional bank , therefore offering its current customers the benefits of digital services . However , Bertrand is not a fan .
“ We call it they keep putting lipstick on the pig ,” he says bluntly . “ You see these banks launching completely new digital spinoffs because they feel that ' s the only way that they can truly innovate . Basically they [ incumbents ] do a lot of cool stuff , a digital layer and they make it look all fancy , and then they ' ve got this monolithic hulk of a thing that ' s been sitting there in some cases 40 or 50 years . But it ' s getting to a tipping point . They ' ve got to start looking at the core .”
Banks have to start thinking differently , says Bertrand . The future is digital , agile , flexible , intelligent and customer centric - and that ' s not about to change any time soon .
“ I think it ' s going to make the industry very exciting . I see the likes of the J . P . Morgans , the Citibank ' s , the HSBCs , and they ' re all starting to think ‘ I can ' t continue to be the way I ' ve been , I ' ve got to start to think about doing things differently .’”
He adds , “ They see the success stories of challengers - like N26 , which is now in 23 countries , and the message is clear . Digital banking is the future , and it ' s here to stay .”