Banks need to challenge fintechs by playing the same game

For many large banks, the greatest challenge they face is how to unshackle themselves from their legacy infrastructure and move forward using new, customer-centric technology.

In a new report titled ‘Time to start again’, consultants Oliver Wyman explain that the challenges from new non-bank trading businesses, digital neo-banks and the likes of Amazon and Apple mean that banks now need to look at how to combine new-build businesses with their existing business models.

The report suggests that the best method is to take a greenfield venture capital approach, setting up a separate organization – with investment provided in stages – that has the freedom to operate independently from the rest of the organization and deploy new technology.