Key Ways Big Banks Can Accelerate Innovation - 1045 Words

3 Ways Big Banks Can Accelerate Innovation Banking is undergoing a revolution similar to the one seen on high street travel, betting and book-selling. Banks should be afraid, the disruption of financial services has only just begun. Do you know which bank is the winner of Disruptive Innovation in Banking award, this year? The winner is not among any of the big established banks, but it is the challenger bank from Germany, Fidor Bank. Most of the big banks have the realisation that they are under severe pressure from many of these innovative challenger banks. Atom Bank, a mobile-first challenger bank, recently won a banking licence to operate in the UK and plans to launch later this year. Unlike traditional banks — and even some†¦show more content†¦They include companies that offer credit/lending services (including peer to peer, crowd sourced and other varieties), payments services (and as a result small amount deposits for payments) and financial management services targeting retail and small business customers. Global investment in fintech has jumped by 46% a year since 2010, to $13.7 billion in 2014. More than 12,000 fintech startups have been founded worldwide, and accelerators for fintech entrepreneurs are established every day somewhere in the world. Traditional banks should realise that a bank-fintech startup connection has immense potential for creating value for both sides. Banks gain innovation and technological flexibility, and startups are given the chance of leveraging the banks’ knowhow and infrastructures to create suitable markets. Some of the big Banks have already realised the power of fintech connection. For example, Deutsche Bank is experimenting with new antifraud technology, Callsign that uses the way you handle and hold your phone to work out if you are really you. The bank hopes the system will free customers from passwords and allow it to lift limits on mobile transactions. Callsignis a startup that takes away the worry about failed or fraudulent login attempts, instead enables truly intelligent access control decisions by analyzing over 50 factors in real-time. Leveraging products like Callsign, banks can help implement a robust solution, take away the risk of