Competing in a Fintech World

How banks should adapt to the context to stay ahead

by Bruno Mellado, Head of International Payments and Collections, BNP Paribas Cash Management While many developments and innovations have initially been targeted at the retail banking sector (i.e., individuals) where customer experience is key, corporate treasurers will increasingly expect a comparable level of digitisation, sophistication and quality of the customer experience in a business context. The question is whether banks or financial technology (fintech) companies are best positioned to respond to these changing needs.

The innovation dilemma 

Competition amongst non-bank financial service providers has accelerated in recent years and forthcoming regulation changes in Europe will further boost the pace of change. European Union agencies are striving to create a level playing field for services across Europe, including financial services. However, this is happening in a context of low banking margins (which are likely to continue), demanding regulatory and compliance rules, and the need for higher liquidity ratios based on stable cash deposits linked to daily banking operations under Basel III. 

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