“Where they once catered to specific demographics, the sector is now providing services across the financial services value chain — to all demographics, in a much larger playing field.”
The report noted that in the US Fintechs are now offering banking-as-a-service (BaaS) providing suites of APIs which other companies (including incumbent banking institutions) can leverage to build banking and payment products.
[Click here to read/watch the video – True winners in the disruption of finance]
“HSBC saw the strategic change of Open API coming into Europe. They saw that consumption could be significant. It could either a threat or an opportunity. Senior management chose to make it an opportunity. They recognized that as a battleship, HSBC is not quick. They partnered with someone who was. The little boat, Bud, can guide the battleship. They launched an app into the UK market with the HSBC brand and it was well received,” he elaborated.
Wyand argued that a lot of these projects have to be driven in a more senior level because these initiatives do not directly tick any boxes in terms of selling more things, making more money, cutting costs – metrics that business unit managers are measured against.
Watch the above to see Wyand describe the new landscape that is reshaping the financial services industry.