THE banking industry is facing the challenge of “uberization” that changes the landscape of how banks operate and provide customers’ changing expectations amid the digital age, the chief of IBM Philippines said on Wednesday.
“Banks and the whole financial industry are in the middle of digital disruption,” Luis Pineda, president and country general manager of IBM Philippines, said. “We call this ‘uberization.’ Just as Amazon and eBay change the way we buy things and how Youtube and Netflix change the way we consume vidoes, AirBNB and Uber have shaken up both the travel and transportation industries.”
In a keynote speech at The Manila Times 4th Business Forum, held at the Marriott Hotel, in Pasay City, Pineda said the fintechs or financial technology are starting to change the landscape of the banking industry, he said, citing a report which showed that in the 10 years, 30 percent of banking jobs could be obsolete.
“Disruption lies not only in the decrease of employment opportunities in the traditional banking services, but also in the increased investments in a disruptors themselves with venture capital increasing more than 600 percent in the last four years,” he said.
Pineda said the banking industry is undergoing major changes primarily driven by evolving customer behavior and rising expectations.
“Today’s customers experience intuitive interfaces and personalized services. This creates a challenge… Customers expect the same level of service and empowerment from banks as they experience from other industries leading the digital evolution,” he said.
These types of disruptions exploit the interception of new technology, new business models and changing customer behavior, he added.
“IBM study said this is what makes the world executives cringe. The uber syndrome, where a competitor with a completely different model enters your industry and flattens you,” he said. MAYVELIN U. CARABALLO