Saudi banks should embrace fintech strategies
Thursday, 03 26 2020, Category: Banking, Country: Saudi Arabia
The number of fintechs emerging in Saudi Arabia’s financial services landscape is changing the face of the banking industry. According to Rajesh Prasad, a partner at KPMG, banks now need to respond to the threat while at the same leverage the power of fintechs to turn the situation into an opportunity.
The financial services industry is undergoing a paradigm shift. Emerging technologies are providing new ways to enhance the customer experience, responding to regulatory change, underpinning new payments or digital delivery models, making service delivery faster and more cost effective, or improving the efficiency of back-office functions. A myriad of fintech solutions available, or in development, are helping to rapidly reinvent the entire value chain of financial services.
The swift evolution of fintech has forced traditional banks to face a new reality wherein products, services and business models that have worked in the past are no longer relevant or considered as a viable option in the digital world. Legacy IT infrastructure has to be replaced or augmented by newer, more efficient technologies. To survive and thrive in today’s digital generation, banks need to recognise the need to reinvent the way they manage their business.