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As we wind down for the year, finews.asia is greatly thankful for the support of its readers and media partners. This prompts the team to think: How do we survive as a small online news portal?

By Val Law, Managing Director of finews.asia, Singapore

In a similar vein, how would established financial firms find their footing in an age of disruption? While every established bank ponders this question today – fintechs are not giving them much time to decide, as they challenge turfs long-held by banks.

Private banks or wealth management firms used to be an exclusive club for the affluent. They have peddled services and products that are unique to certain clients.

Just Labels

But as banking products get commoditised and delivery technologies improve, such «exclusive products» may be just labels. 

Bankers are finding that their high-net-worth clients increasingly care more about the environment, sustainability, and financial inclusion, than the luxurious offices that some banks have built. The rise of social media also prompted many individuals to think about the impact they want to create with their investments.

Banking As Basic Human Right

Fintechs on the other hand, are making financial solutions affordable and easy to those who were not able to «afford» such services in the past. One bank veteran told me that banking is a «human right» in Europe, but this is not the case in many parts of Asia.

The banks can shut down one’s bank account without providing any reason, whether it is to manage their own risk exposure, or fear of implications related to money-laundering. These clients will be the first to turn to fintechs that offer them solutions.

Fancy Robo-Chats

Some banks have chosen to go big into «digital banking» by investing in fancy robo-chats, or tying up with popular tech firms so as not to miss out on the wave of becoming «digital banks».

Meanwhile, many banks in Asia still wish to keep their physical branches for fear that its older customers will not be able to adopt, or that most of their important customers want face-time at the branches.

Huge Mistake

In our recent piece «Cafe? Museum? No... it's a Bank!», we found that most banks want to preserve their existing branches. This is a huge mistake. Our parents or grandparents have survived the world wars, so banks are clearly underestimating their ability to adapt.

What they are missing is a compelling proposition for them to adapt to their digital banking solutions. Challenger banks and tech companies such as Revolut and WeChat Pay are already meeting banking needs – without physical branches.