Driving the Evolution of a Hybrid Financial Services Ecosystem
Taking the hybrid path to a next gen financial services ecosystem
With fintech and insurtech firms reinventing the banking, financial services and insurance (BFSI) space, incumbents are leveraging the startup ecosystem by partnering with new entrants to expand their portfolio with innovative digital offerings. However, these partnerships often hit roadblocks in delivering the desired business outcomes, which can be attributed to challenges faced by both traditional firms and startups.
In our view, the future BFSI industry will hinge on ecosystems. BFSI firms must therefore strategically leverage the fintech and insurtech ecosystem through partnerships with startups to drive the evolution of a hybrid financial services ecosystem where three entities – startups, incumbents and IT service providers – will have key roles to play.
To embark on this transformation journey, BFSI firms must:
- Finalize their strategic priorities and objectives
- Adopt a holistic strategy to transition to a hybrid financial services ecosystem
- Partner with an IT service provider to anchor and drive the ecosystem evolution through relevant fintech and insurtech partnerships