The next 20 years will see the world go from 20,000 “analog” banks to no more than several dozen “digital” institutions.
-Francisco González, BBVA Chairman
We've all heard the news this week: Apple finally launched their much-anticipated Watch. The neat little device can handle phone calls, leverage iPhone via WiFi or Bluetooth, and doesn’t even need a built-in cellular radio.
More importantly (at least for us), is understanding how this new hardware can improve your (financial) life without having to rummage through your bag or pockets to dig out your phone, slide to unlock, punch your passcode and tap the notification window.
Mobile money services (MMS) are spreading rapidly across much of Africa, Asia, Latin America and the Middle East, reaching over 60% of the world’s developing countries. The number of registered mobile money accounts has grown to just under 300 million globally in 2014. As this represents only 8% of mobile connections in markets where MMS are available, there is significant potential for future growth.
Banks are cornered between FinTech startups and tech giants like Amazon, Apple, Facebook and Google. No longer loyal to traditional financial institutions, Internet-savvy consumers are already used to adopting new financial services from third parties. Consequently, banks are now faced with an inevitable choice: drive their stake into the FinTech arena, or die.
“Let’s not pretend that things will change if we keep doing the same things. A crisis can be a real blessing to any organisation, because creativity is born from distress. It is in crisis that invention, discovery and large strategies are born.”-Albert Einstein