Luigi Wewege - The Digital Banking Revolution: How Fintech Companies Are Transforming the Retail Banking Industry Through Disruptive Financial Innovation

Luigi Wewege, Michael C. Thomsett

The Digital Banking Revolution

Luigi Wewege, Michael C. Thomsett

How Fintech Companies are Transforming the Retail Banking Industry Through Disruptive Financial Innovation

ISBN 9781547418336

e-ISBN (PDF) 9781547401598

e-ISBN (EPUB) 9781547401611

Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available on the Internet at http://dnb.dnb.de.

2020 Luigi Wewege and Michael C. Thomsett Published by Walter de Gruyter Inc., Boston/Berlin

A large portion of the proceeds from the sale of this book will go toward funding the Luigi Wewege Foundation, which provides an annual academic scholarship to a deserving American student. For more information, please visit: www.luigiwewegefoundation.com.

This book is dedicated to my amazing parents, Desmond and Loretta Wewege, without whom none of my success would have been possible!

Luigi Wewege

Many thanks to the talented and dedicated editors of the world for diligently pursuing excellence and accuracy in all that they publish. These are the unsung heroes of the publishing world.

Michael C. Thomsett

The Digital Banking Revolution captures the effects of disruption brought to the banking industry by emergent financial technology businesses. The authors provide a fascinating examination of several companies who have recently developed new financial innovations and how they are demonstrably significant to the consumer.

Victor von Gierszewski

Managing Director

TNS Global

The Digital Banking Revolution provides a unique take on the consumerization of retail banking services. It elucidates on how banks are facing increasing pressure from digital competitors, and how by recognizing these threats they can now go on the offensive by developing innovative technologies of their own.

Reginald D. Jele

Chief of Staff to the Minister of Finance

Republic of South Africa

The Digital Banking Revolution should be considered a survival guide for bank leaders, providing those in the industry with a strategic blueprint on how to adapt, evolve and succeed in this digital age.

G. Paul Warner

Former Private Bank Director

National Australia Bank

The Digital Banking Revolution is an informative read focused on the transformational changes facing traditional retail banks worldwide. It covers insightful well-researched analysis on: big data, customer engagement, disruptive technologies, mobile payments, and the changing financial behaviors of consumers, in particular millennials.

Michael A. C. Hart

Chairman and CEO

TPS Capital

The Digital Banking Revolution is an insightful look at how financial technology has brought welcome changes to the banking industry. This is essential reading not only for the next generation of retail bank customers, but also for those who want to fully understand how financial services will be conducted going forward.

Thomas J. ORourke

Assistant Director, Banking

The Bermuda Monetary Authority

The Digital Banking Revolution book is an absolute must read for those who wish to gain a deeper understanding of how innovative technologies are shaping the future of financial services.

Boris Simic

Director DACH

Klarna Inc.

For many years, retail banks have been secure, highly profitable businesses. However, recent industry disruption has come knocking at the door of these financial giants. The turning point was the global financial crisis experienced between the years 20072009, which not only led to large losses, and even the collapse of a significant number of established banks, but shook the trust of financial customers worldwide. These factors, combined with the fact that banking has been relatively undisturbed for centuries, meant it was time for change, and that change has been the rapid rise of financial technology companies, or fintech.

Emergent innovative financial technologies are profoundly changing the ways in which we spend, move, and manage our money unlike ever before. The digital transformation and its pace of change have been truly astounding, dramatically shifting customer behaviors and expectations of their financial service providers. Retail banks must now become positioned to fulfill their customers every financial need, especially as the Millennial generation (those born between the early 1980s and early 2000s) is poised to command the most purchasing power of any age group. Banks will need to become more cognizant of this generation for a multitude of reasons. Research undertaken by the Cassandra Report The overall progress of financial service innovations has been driven by adoption across all age groups, but the demand from the Millennial generation to push the boundaries of innovation and to think about financial services differently has been a major catalyst for disruptive change.

Regional banks impact this changing landscape more than very small or extremely large banking corporations. Most media attention has been focused on the large national banks, of which there are only a handful. In the US, these include four mega-banks: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.

There is much more to this analysis, but as a starting point it just makes sense to study the differences between the massive banks that control most of the industry, the small local banks, and the regional banks that operate in more than one state but have a local feel which consumers seem to like.

Edwin Carlson

COO/Director of EQITrade (EQIExchange & EQIBank) the worlds first licensed and regulated bank for fiat and digital assets