We’ve hit a tipping point in the battle between traditional financial institutions (TradFi) and financial technology (fintech) disruptors. Digital banking (led by fintech) has become ubiquitous, with nearly universal adoption — eight in 10 consumers now use some type of digital financial tool, and half of Americans use fintech tools on a daily basis. TradFi leaders know what’s happening, and they know what’s to blame. Bank leaders globally say sub-par customer experience is costing them up to 20% of their customers each year, and the vast majority (63%) blame their slow digital transformation. In fact, just 4% of bank leaders say they deliver excellent digital customer experience (CX). Yet there’s no question that TradFi still has the upper hand. They control the vast majority of assets under management, they have deeper resource pools than their FinTech competitors, and it’s very clear how to stop the bleeding: On the front end.
