The financial services landscape as we know it is changing. In recent years many service industries have been shaken up by disruptive technologies and the banking sector is no different. Whilst regulations and legacy systems have traditionally slowed down the sector’s ability to embrace change, the door is now open for financial services to embrace a new wave of digital led innovation.  

Last year we witnessed the introduction of the next wave of third-party payment offerings from companies such as Apple and Samsung. Whilst in reality these services only represent a small step forward, the potential for mass adoption makes them significant developments. What's more, by encouraging greater use of mobile technology, they are turning up the pressure on banks to evolve their omni-channel strategies.

Wary of being disintermediated, banks recognise that if they don’t embrace the power of technology they will be left behind. To help address the need for technical innovation, banks are turning more and more to the fintech community, where banks are increasingly working with fintech start-ups to identify disruptive technology and service offerings that can fundamentally enhance their ability to innovate.

The truth is that financial institutions and fintech players both have their strengths and weaknesses. Harnessing innovation from third parties and embedding it into existing service propositions will enable banks to retain control of the customer at the same time as offering new and innovative services. If they don’t then they will risk alienating both existing and future customers for good. A recent survey highlighted that nearly two thirds of retail banking customers are already using products and services provided by the fintech community.

As we stand on the brink of this new era, collaboration within the banking industry is essential if organisations are to meet the demands of the modern day customer.  Trying to go it alone is no longer a viable option for the bank of the future.