by Schuyler Weiss, Chief Digital Officer, REYL & Cie (Preface of Banking in Switzerland and Luxembourg - GlobalTech Supplement)
People often say that the only constant is change
People often say that the only constant is change. While some embrace change for driving progress and others fear it for the uncertainty it brings, it’s clear that an industry’s ability to evolve has often been the deciding factor in whether it falters, survives, or thrives. The banking industry has been able to get by for millennia on incremental change, using stopgap measures to adapt to shifts. That approach will no longer suffice.
Over the past 40 years, digital changes have increased the urgency for transformation. Clients, especially those from younger generations, have new standards for their banking partners. The banks that do not meet these expectations risk being replaced. Those that embrace opportunities to reinvent their relevance in today’s world stand to succeed.
There are three phenomena that are currently contributing to the increase in what I call a client’s Swap Tolerance, their willingness to shift from a legacy banking partner to
a contemporary one. These are the expectations for immediate, personalized services, the transparency the bank provides about its offerings and operations, and the introduction
of competitive new players due to lower barriers to participate in the industry.