The rise of digital-only banking
What incumbents can learn from digital players

Digitization means that financial institutions are increasingly becoming technology companies with a banking license. – Zane Miltina, Luminor Bank

What does being truly digital mean for banks?

• For the customer, it means a seamless experience
• For the business, it says to automate to reduce time and cost

Banks are putting in top dollars to win the digital race

The rise of 2 kinds of banks:

The digital disruptor

1. It is already a profit-making bank
2. Its deposits and users are growing rapidly
3. It serves the millennials and the unserved

The digitally disrupted

1. They are slow to adapt to change
2. They think of digital transformation as building apps
3. Lastly, they fail to shift out of the legacy mindset and into the digital era

The 6 things banks need to do:

• Lower costs by automating tasks
• Build digital customer solutions that add value
• Create new revenue models to adapt to the changing landscape
• Develop a form of responsive agility
• Build a tech brand built on trust
• Ensure that user data security is a top priority and not to be trifled with

The 3 rules of digital banks

1. A digital first idea like that of WeBank

2. Be a true advisor of the customer’s financial well-being

3. Build partnerships with non-financial service providers to embed customer value