The document discusses the future of banking in light of financial technology (fintech) innovations. It notes that technology companies view data as a key asset while banks traditionally have viewed products as the main asset. The document also examines regulatory rigidity challenges for banks in innovating, and how shadow banks have emerged to fill some regulatory gaps. It analyzes strategic levels for banks to extend, bend, or jump existing lines in response to the dynamic fintech landscape and competitive threats from other incumbent firms and adjacent players investing heavily in digital transformations.

1. FINTECH& The Future
of Banking
2019
FINTECH
FORGE

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1. Technology
2. Data
3. Regulation

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“Technology companies treat
data as the asset and products
are how they monetize it; we
banks view products as the asset
and data as an afterthought”
- CEO of $1.7b Bank

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Regulatory
Rigidity

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Shadow banks fill
regulatory gaps?
Piskorski

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What is the job to done here?

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“It is noteworthy that P2P
lending is not an
innovation in the
product space…”
- Balyuk

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Digital
Lipstick
on an
Analog
Pig
© FTForge, LLC

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Experience Level
Tactical Level
Strategic Level
© FTForge, LLC

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The Innovator’s Dilemma
Time
Performance

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…for Financial Services
Time
Performance
•Technology
•Processes
•People
•Culture
•Regulation
Tension
13

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$100B+ invested in fintech
companies in last 5 years
Digital arms race from
other incumbents:
• New strategies
• Acquisitions
• Acquihires
Encroachment from
adjacent players:
• Retailers/Marketplaces
• Tech Companies
• Insurance
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Core Strategies & Tactics
Innovation Strategies & Tactics
Extend
the Line
Bend the
Line
Jump the
Line

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Dynamic
Fintech
Landscape
Highly
Regulated
Environment
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© FTForge, LLC @jasonhenrichs
Time
Pace
of
Change
You Are Here

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The journey is
just begun