This week, #DisruptionBanking attended the Banking Renaissance Conference in Amsterdam, which brought together the most important fintech influencers from around the world. Over 250 attendees, including CEOs, board members, top executives, and bank owners gathered to discuss the latest trends in the industry. One of the notable speakers that we had the pleasure to meet again was Chris Skinner. A self-proclaimed troublemaker, Chris is a renowned fintech expert and influencer, as well as an author of seventeen books. Yesterday, he shared his insights on “The Future of Banking, Digital Transformation.”
According to Chris, “If you’re wondering about digital transformation and how to do it, you’re too late as it should already have been done. We’re now moving into transformation 2.0, where the question is how we use finance and technology to make the world a better place.”
The Future of Fintech?
Chris discussed the seismic transformation currently underway in the industry, pointing to the significant expansion of fintech in recent years. He noted that the fintech industry’s representation in financial markets has grown from just 3% in 2010 to a staggering 38% by the end of 2021: an unignorable shift in the balance of power. Skinner also emphasised that traditional financial institutions and the FinTech industry are vastly different. While the former is more stable, secure, and reliable, the latter is more innovative, disruptive, and exciting.
Skinner sees potential in fintech to make the financial industry more accessible, efficient, and customer-friendly. He remains optimistic despite the differences. He stressed that traditional financial institutions must adapt and embrace digital transformation to remain relevant and competitive in the years to come. Furthermore, he predicts that the industry will experience more consolidation and acquisition as larger players look to expand their reach and acquire innovative startups. Overall, Skinner’s message is clear. He urges: “Embrace the change or risk being left behind in this rapidly evolving industry.”
The Importance of Data and Collaboration in Digital Transformation
Chris stressed the need for banks to collect and analyse customer data to gain insights into customer behavior, preferences, and needs. This enables banks to personalise their services and offer tailored products to their customers, ultimately increasing customer satisfaction and loyalty.
“Data is a crucial factor in the success of banks, rather than technology.”
Furthermore, Chris touched on the growing importance of fintech startups and their impact on the banking industry. He highlighted that traditional banks should view fintechs as partners rather than competitors. “Fintechs can offer innovative solutions and new business models that can benefit both parties.” Chris also stressed the need for banks to collaborate with other players in the financial ecosystem, such as regulators and technology providers, to drive innovation and achieve their goals.
CeFi/DeFi debate – Is HyFi the answer?
In his presentation, Chris Skinner also emphasised the importance of governance in achieving a balance between centralised and decentralised finance. He argued that neither extreme is desirable or effective, and that a middle ground is necessary for the sustainable development of the financial industry. He explores this concept in-depth in his upcoming book, proposing a hybrid finance model called HyFi. This model combines the benefits of both centralised and decentralised finance while minimising their limitations. The HyFi model aims to establish a new framework that balances governance, security, and innovation, while ensuring that financial systems are more inclusive and accessible to a wider range of individuals and organizations. Skinner believes that this approach will help to foster a more collaborative and transparent financial ecosystem, while enabling the industry to adapt to the evolving needs of society and the broader macroeconomic landscape.
Embracing Digital Transformation
Finally, he conveyed a sense of urgency about the need for digital transformation and other changes that must be made for the benefit of future generations.
“I want technology and finance to do good for society and good for the planet. And this is a core message that I will finish with because I think we can do that” – he said. “If you’re only focused on delivering returns to shareholders, then that’s good for them, but it ain’t good for me.”
It is essential to consider these factors as we move ahead and work towards a future that benefits all.
Author: Barbara Listek
#BankingRenaisance #Fintech #DigitalTransformation #TradiFi #Defi #HyFi
