The Digital Bank vs Digital Banking

fintech banking bots

As we’re nearing the end of the year I think it is suitable time to do some predictions. So here are my two cents – I think next two years will be extremely volatile for the banking industry. The dawn of bots will apply immense pressure on the banks, way more than online or mobile has previously. Banks will slowly started to be pushed behind the slick interface of a tech giant or a fintech. The business model will require rapid change to accommodate for it. This week I’ve picked some articles that discuss how this could look like and WTF are the chatbots.

Thanks for reading; YOU are awesome!

Have a wonderful week,


FinTech Chatbots – The Millennial Command Line
By Chris Gledhill

Banks have churned through a good few channels recently: Mail, Branch, ATM, SMS, Telephony, Web, Mobile App. It’s fair to say the Mobile App currently rules supreme. However, the next #1 customer touchpoint for the majority of incumbent banks will be chatbots. Banks and other industry vertical players will toy with their own chatbots but they will ultimately fail as the best bots will be multi-disciplined. This change is not far off. Banks won’t have the time to adjust like they did will apps and the impact of losing the customer will be huge for the incumbent banks that don’t adapt.


Chatbots – Saviour or Disintermediator?
By Stephen Greer

Chatbots offer incredible scale at a pretty cheap price, making adoption potentially explosive. They give the bank the ability to automatically appear in almost all of the most used apps in the world. The opportunity with digital assistants is immense, and given the nature of bank transactions, it’s not hard to imagine chatbots becoming a widely used engagement method. However, Chatbots will only further fragment the customer journey, requiring an even clearer understanding of how consumers are choosing to handle their finances and make transactions. Banks need to start thinking about how chatbots and AI fit into a long-term digital channels strategy, one that doesn’t handcuff the institution into a no-win proposition of competitive disadvantage versus wilful disruption.


The Digital Bank vs Digital Banking
By Sudhir Kesavan

For a few years now, it has been expected that digital will spur the creation of banks as platform, marketplace banking, identity as a service offering and other constructs of a radical nature. There is a sharp chasm emerging between a large number of traditionalists and the smaller set of pioneers. Banks are essentially risk management businesses. The business of attracting customers outside of product or services that don’t involve this function is lost on a bank. This thinking has led traditionalists to continue to view digital as first and foremost a channel strategy, and second as a cost management one. Prioritising the customer-need-driven agenda can only be successful if it forms part of the overall strategic agenda, or else it will end up as proof of concepts. While a majority of FIs will become digital banks, it’s only the pioneers who will practice digital banking.


Banking Is Not An Industry, Nor A Business Model
By Periklis Thivaios

Banks are not in the banking industry. Banking is not an industry, nor a business model. Instead, banking is an umbrella term referring to a number of services that just so happen to be performed by banks. Practically, banks are in a number of industries, namely lending, payments, transaction processing, advisory, investments and so on. As a consequence, their competitive strengths and weaknesses have to be evaluated per industry; their competitors as well. Banking analysts can draw a number of lessons from other industries that have experienced disruptive forces in the past. An analysis of banking as an industry is likely myopic and would require a decomposition of the business models that make it up. Don’t look for answers in banking. Instead, try to understand and improve the actual industries you are really in.

Also published on Medium.

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I'm a #26 Global FinTech influencer. An Economist by profession, I have worked on both sides of the table - tech startups and global financial organisations. I love football, technology, travelling and photography.