Jason Henrichs made a thought-provoking prediction on a recent episode of the NextGen Banker podcast.
“The face of banking is fundamentally going to look more different in the next five years than it has in the previous 500,” said Henrichs, an expert in the financial technology field and host of Breaking Banks.
He then took his hypothesis a step further.
“Ten years from now, there is not going to be a fintech company. Because fintech is fundamentally going to go away that we’re going to see embedded finance and embedded fintech in the experiences of what we do,” said Henrichs.
“What we use to call financial technology as a transaction layer is going to be gone.”
While Henrich’s prognosis is no doubt bold, it’s also in line with the technological advances we’ve already seen in banking over the last decade. Fintech is ubiquitous in our day-to-day, whether through food delivery apps (yes, that’s fintech) or online banking. The ability to move, lend and store money is at our fingertips.
So what does fintech’s rapid ascent mean for the banker of tomorrow?
Sunrise Banks CEO David Reiling set out to answer that question in his new podcast, NextGen Banker. The show focuses on what’s next in banking and how financial professionals can contribute to a more equitable and socially responsible economic system.
Here’s some advice guests of the show so far have given to the next generation of financial professionals.
“You Have to Go Faster.” – Jo Ann Barefoot
“The main thing I hope that listeners to your show think about in terms of the ‘NextGen Banker,’ is that you have to go faster,” said Barefoot. “Don’t spend three years trying to figure out what to do – start doing it.”
“We Need Skills that Go Beyond Boxes.” – Dr. Tia Kansara
“We need skills that go beyond boxes, circles and shapes. We have to be shapeless, formless and comfortable with the unknown. Imagine the ability to respect something that doesn't yet exist.”
“Our next era is about inclusivity, diversity and compassion. This will be the blueprint of banking.”
“The Banker of the Future is Actually Going to be a Strategist.” – Jason Henrichs
“The banker of the future is actually going to be a strategist. …and strategy requires understanding where do you compete? What is different about your customers? What are your strengths and weaknesses and how do you actually leverage those to choose what you’re going to do, and equally importantly, not do?
Because if you look at most banks today, regardless of asset size, regardless of geography … a bank in Asia for the most part, it looks like a bank in the U. S., looks like a bank. You know, different regulations, maybe different metrics around things, but they take in deposits on one side, they lend on the other and they conduct transactions. And regardless of size we kind of do all things for all customers. That isn’t going to work in the future.
We have to rethink who do I serve? How do I serve them? What’s unique? Emphasis is unique, competitive advantage. And how do I do that?”