An interesting survey conducted by PYMNTS & i2c to gauge the state of innovation in the financial services industry.
Based on the findings, my perspective on the most interesting results are:
- Money was not the issue, for a change! Top innovators surveyed indicated funding levels in 2018 that were the same or more than 2017
- "IT Infrastructure" and "Process for new products" were cited as the top two hindrances to innovation in 2017 and 2018. This was a shared perspective across commercial banks, credit unions and community banks
- The customer is still always right. The top reasons for FIs to innovate were either to meet changing consumer behavior or to provide response to existing & potential client needs
- The top areas for innovation were credit cards and bill payments
- Many FIs did not seem to realize that they are competing with FinTechs (just 6.5% surveyed seem to think so), which could be a cautionary tale in the making
Since I'm sure I've left out a great deal, I recommend you read the article and skim through the embedded link to the survey results.
The Innovation Readiness Index also found that FinTech firms were a leading threat — not just to credit unions, but all FIs — because of their lack of fear in investing in innovative initiatives. However, just 6.5 percent of FIs in the study said they considered FinTech firms to be their competitors, far fewer than in 2017 (19.7 percent).