Financial Express The product design strategy of a financial service firm revolves around ‘maturity transformation’, ‘liquidity transformation’ or ‘risk transformation’. There is excitement about fintech eating traditional finance. The incumbents are institutions with legacy systems and older-generation leadership while the new-age challengers are building models on open APIs and have modular, scalable platforms. In the new world, customer engagement is expected to hold the audience captive—this is expected to create a strong distribution pipeline via which products of increasing complexity can be sold. A publication by the Boston Consulting Group earlier this July, “Banks Brace for a New Wave of Digital Disruption” talks about the need for the banks “to redefine themselves and change how they operate”. However, it adds an important caveat: “given the fundamental strength of many leading multinational banks, banking’s inherently high barriers to entry, and the extent of the indu...
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