Short answer

Designers and strategists in the financial sector must prioritize user-centric features like clear pricing, accessible information, and efficient service delivery to remain competitive against FinTech offerings.

Field: Innovation & Markets
Source: International Journal of Business Intelligence Research (2020)
Method: Qualitative research involving expert interviews.
Evidence: Strong effect

Traditional financial institutions are adopting new strategies to compete with FinTech challengers, driven by robo-advisory services and demands for better pricing, transparency, and services. This innovation & markets research insight is drawn from a 2020 study published in International Journal of Business Intelligence Research. Using Qualitative research involving expert interviews., researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and strategists in the financial sector must prioritize user-centric features like clear pricing, accessible information, and efficient service delivery to remain competitive against FinTech offerings.

Study

Innovation & MarketsHigh ImpactStrong effect

FinTech Disruption: Strategies for Traditional Financial Institutions

Traditional financial institutions are adopting new strategies to compete with FinTech challengers, driven by robo-advisory services and demands for better pricing, transparency, and services.

International Journal of Business Intelligence Research · 2020

Key Findings

01Robo-advisory services are a significant disruptive force in wealth and fund management.
02Traditional financial institutions are actively developing strategies to adapt to FinTech competition.
03Key competitive factors include pricing, transparency, and service quality.

Application

Design takeaway

How to apply

When designing new financial products or services, consider how to incorporate elements of transparency, competitive pricing, and enhanced service delivery that are characteristic of FinTech solutions.

Project actions

01Investigate a specific FinTech innovation and its impact on a traditional service.
02Analyze how established companies are responding to emerging technologies in their sector.

Method & Evidence

AimTo explore the digital disruption caused by FinTech challengers in the traditional financial services industry and identify strategies adopted by incumbent firms to counter this competition.

MethodQualitative research involving expert interviews.

ProcedureThe study involved conducting interviews with various experts in the financial industry, including investment bank executives, bank managers, IT professionals, and FinTech entrepreneurs, to gather their perspectives on FinTech disruption and competitive strategies.

ContextFinancial services industry, specifically the impact of FinTech on traditional institutions.

Variables

IVIntroduction of FinTech challengers (e.g., robo-advisors).

DVStrategies adopted by traditional financial institutions; perceived impact of disruption.

CVExpert perspectives from various roles within the financial industry.

Strengths & Limitations

Strengths

+Addresses a highly relevant and current industry trend.
+Gathers insights from a diverse range of industry professionals.

Limitations

The study relies on the perceptions of industry experts, which may not fully represent the end-user experience or the complete picture of market dynamics.

Reliability & validity

The reliability of the findings may be influenced by the subjective nature of expert opinions. Validity is enhanced by interviewing a range of stakeholders, but a broader sample size could further strengthen it.

Think critically

To what extent can traditional financial institutions truly innovate to match the agility and cost-effectiveness of FinTech startups, or will they primarily focus on incremental improvements and partnerships?

Design Principles

"Embrace transparency and value-driven design to foster trust and competitiveness in financial services."

Understanding the impact of FinTech on established financial services is crucial for strategic planning and product development. Design professionals can leverage this insight to create solutions that address the evolving needs of both institutions and consumers in the financial sector.

What This Means for Your Design

New tech companies (FinTech) are changing how people manage money. Traditional banks are trying to keep up by changing their services and making them cheaper and clearer.

How to use in your project

1.Use this research to justify the need for a new design solution that addresses market disruption.
2.Cite this study when discussing the competitive landscape and the importance of user-centric features in financial products.

Add to My Project

Quick Cite

Paragraph starter

The financial services industry is undergoing significant disruption due to FinTech innovations, such as robo-advisory services, which are compelling traditional institutions to adapt. This research indicates that competitive pricing, enhanced transparency, and superior service delivery are key factors driving this shift, necessitating strategic responses from incumbent firms to maintain market relevance and customer loyalty.

Source

International Journal of Business Intelligence Research

Artificial Intelligence in FinTech

journal · 2020

View source

Questions About This Research

What does the research say about fintech disruption: strategies for traditional financial institutions?: Designers and strategists in the financial sector must prioritize user-centric features like clear pricing, accessible information, and efficient service delivery to remain competitive against FinTech offerings. Evidence: International Journal of Business Intelligence Research (2020).
Why does "FinTech Disruption: Strategies for Traditional Financial Institutions" matter for design?: Understanding the impact of FinTech on established financial services is crucial for strategic planning and product development. Design professionals can leverage this insight to create solutions that address the evolving needs of both institutions and consumers in the financial sector.
How can designers apply this research?: Designers and strategists in the financial sector must prioritize user-centric features like clear pricing, accessible information, and efficient service delivery to remain competitive against FinTech offerings.
What were the main findings?: Robo-advisory services are a significant disruptive force in wealth and fund management.. Traditional financial institutions are actively developing strategies to adapt to FinTech competition.. Key competitive factors include pricing, transparency, and service quality.
What research method was used?: Qualitative research involving expert interviews..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2020 journal from International Journal of Business Intelligence Research.
What should I do differently in my next project?: When designing new financial products or services, consider how to incorporate elements of transparency, competitive pricing, and enhanced service delivery that are characteristic of FinTech solutions.
What are the limitations?: The study's findings are based on expert opinions, and the specific strategies adopted by firms may vary.