Things are not looking good for high street banks, with more and more not able to keep up with Big Tech and FinTech firms.
That applies to both income growth and market cap.
Indeed, any innovation from high street banks over the last 10-12 years or so has been largely reactive and, typically, defensive, and analysts as well as the markets aren’t recognising or seeing any value in bank innovation efforts.
There is, however, an opportunity for high street banks to reassert their position and fundamentally change the current perception by embracing an emerging field of great importance: Digital Identity.
Four crucial goals are able to be met simply by a collaborative effort to underpin a digital identity scheme.
- A collective defence against further innovation by Big Techs and FinTechs
- A strengthening of the bond with customers
- Potentially huge cost-savings and gains in terms of efficiency to enhance margins
- Strong revenue generation and profit growth by offering identity authentication services
In addition to the potential economic gains, the impact on customer experience could be enormous.
High street banks would seek reestablish their position at the hub of customers’ lives, revalidating the trust that they place in their bank.