For 68% of financial institutions polled in a recent study, innovation was chiefly driven by changing consumer behaviors, especially concerning bill-payments. On the other hand, 50% of Gen Z users said they chose their credit unions because of mobile app offerings. The study found that fintech firms were a leading threat to all financial institutions due to their willingness to invest in innovation, and are positioned to capture more traditional financial customers in the near future.
While traditional financial institutions retain a stronghold with large corporate clients, fintech companies are luring small businesses, startups, and individuals into using their services by marketing themselves as more accessible and convenient options. As these businesses mature, and new, digital-native generations join the entrepreneurial ranks, they are poised to reach a greater market dominance. Some financial institutions are catching on — either by offering apps and easy e-billing systems, or by acquiring smaller fintech players while they are growing. Regardless, it has become apparent that, even for financial companies that mainly cater to big businesses and B2B operations, the key to survival lies in marketing their services with the same ease and friendliness as fintech disruptors.