VIRTUAL BANKS
change , leaders are presented with several new challenges when it comes to actively managing customer trust . For example , the rise of virtual banks forces greater IT infrastructure transformation on behalf of incumbents in order to maintain a competitive edge – this presents greater security risks . Similarly , new technologies such as AI or chatbots must be secure and trustworthy ; they must also contribute to the user experience .
Against this landscape , KPMG sought answers to several key questions facing financial services leaders – Chief Information Officers , Heads of Cyber Risk and so on – when it comes to securing their future endeavours .
VIRTUAL BANKS
Key points for discussion under the topic of virtual banks included speed of change , customer experience , regulatory fragmentation and the supplier ecosystem .
Here , speed is crucial . This is largely as a result of the financial services landscape becoming increasingly competitive – no longer are incumbents competing with each other , for example , they now face a direct challenge from virtual banks , fintechs and other digital disruptors . These new entrants to the market are geared towards the latest technologies , are more flexible and have built their business from the ground up in a digital way ; they have an advantage as a result .
According to Tuteja , for example , “ a major transformational change of a bank ’ s platform used to take anything between two and five years . But now they ’ re up against players with no legacy systems to upgrade and they are forcing the pace . Suddenly people are talking about upgrading banking systems every four to six months .” Understandably , this places considerable pressure on IT infrastructure for incumbents .
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