While some financial industry leaders were patting themselves on the back for responding to disruption with a smartphone app, someone else was out there figuring out how to enable contactless payments with a pair of sunglasses. The WaveShades were a big hit at this year’s South by Southwest Festival in Austin, Texas, but they got their start much closer to home. The concept was developed by Peter Colbert, founder of Inamo and member of FinTech Australia.
So if you think your organisation weathered the storm of fintech disruption, or if you consider yourself a disruptor, think again. Like the surf at Manly Beach that inspired those sunglasses, disruption comes in waves – and the next ones are already breaking.
The state of fintech in Australia
Innovations in the financial sector are underway around the world, but Australia has stood out recently. According to KPMG, global fintech investment dropped from AU$61.3 billion in 2015 to $32.4 billion in 2016. On the other hand, fintech investment in Australia surged in 2016, up to AU$861 million from just AU$243 million the year before.
This leaves Australia in a leading position among other nations. According to Ernst & Young’s (EY) FinTech Adoption Index, the country has the fifth-highest rate of adoption with 13 per cent of consumers using two or more fintech services or platforms over a six-month period.
— Avocado Consulting (@avocadoconsult) March 22, 2017
It’s important to remember that the world of fintech is fast-paced, and the sector may be in an entirely different position just a few months down the line. As such, organisations need to constantly keep their eyes on the next step.
The risk of disruption
Consumers are thrilled with the convenience brought about by fintech disruption.
Fintech itself began as a source of disruption. As an example, think about how different the consumer banking landscape is from just a few years ago. Rather than heading into a branch office or stopping by an ATM, we’re managing most major transactions through apps and online banking.
The impact of fintech disruption isn’t lost on customers, and most of them are revelling in the added convenience and freedom it has brought about. In fact, Roy Morgan Research notes, “The fintech phenomenon taps into a new consumer mindset, 64 per cent of whom would prefer never to go into a traditional bank branch – ever again.”
How to thrive under disruption
Customers have shown a willingness to move on to the next advancement in financial services, even if the industry itself lags behind. Given that, it is essential for organisations to be prepared for the next round of disruption. These strategies will help.
- Be ready to act fast
If an organisation runs at a snail’s pace when it comes to project development timelines, it will have a difficult time rolling out new products and services to meet customer needs. More advanced offerings from competitors could tempt them to switch if their current provider isn’t keeping up.
Adopting Agile project methodology or bringing expert consultants on board can help ensure more rapid development timelines, a necessity in fighting the tide of disruption.
- Give customers a streamlined digital experience
When clients log on to their banking app to transfer funds, they want to be able to do so as quickly as possible. Issues buried in an app’s code can lead to latency that leads to unsatisfied customers. Tools like a digital performance monitoring platform can help detect these issues in the development and testing phases of new app or website releases, or even once they’ve been rolled out.
The team at Avocado Consulting has a wealth of experience in providing support to organisations through project management and improved digital capabilities. To learn more about how we can bolster your fintech strategy, contact us today.