As we approach the end of what has been the most tumultuous year in recent memory, the annual tradition of recapping lessons learned will be more difficult than ever. There are certainly no shortage of lessons to take, but to me, there are three big takeaways that we should all remember as we (hopefully) put 2020 in our rear view mirrors.
1. Banks can adopt technology quickly when they’re properly motivated. For as long as I’ve been in fintech, the conventional wisdom was that it’s not possible for banks to innovate quickly. But when faced with urgent problems, many were able to move at a pace that would have been unthinkable just 12 months ago. There are always going to be those that lag behind the herd, but the speed at which FIs were able to move in 2020 was eye-opening, and it’s worth remembering that this is an industry that can move fast – it just doesn’t usually want to.
2. Customer behavior is more changeable than we think. So much energy within the fintech ecosystem is dedicated to examining what customers want to do and what they’re willing to do. What this year has shown us, though, is that customers are more malleable than we think. In a situation where physical banking became impossible, customers were able to learn and adopt new technologies to keep themselves moving. And interestingly enough, many of them are changing their behavior permanently now that they’ve had a taste of the alternatives.
3. It’s increasingly clear that digital solutions hold the answers to the challenges that we’re facing across the board. I've heard a version of the thought, “Well, at least this is happening now when there are digital tools to deal with it," expressed by so many people this year, and while the work done in fintech over the past decade wasn’t done with a pandemic in mind (how could it have been?), it’s clear we are in a better position now because of it. We don’t know what the challenges of the future will bring, but it's clear we need to continue to invest in digital solutions and embrace new technologies if we're going to be best prepared.
The next few days at FinovateWest are sure to give you lots to think about. You’ll see innovative new products, hear from thought-provoking speakers, and have plenty of chances to network. As you take it all in, I’d encourage you to keep the three big pieces above in your mind. The world of finance is more flexible than we sometimes think it is, more changeable than we sometimes wish it was, and more willing to embrace new technologies than we give it credit for. It’s up to each of us individually to decide if we see that as more of a problem or an opportunity.
