New Direction Provides Competitive Advantages For The Companies

Major Transformations
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The banking industry has undergone a radical shift in the last two decades; this shift has been driven by competition from FinTech, disruptive technologies, compliance pressure, and mounting regulation, as well as changing business models. According to Christoph Brandt and Frank Hermann, FinTech is a new industry that makes use of technology in order to improve financial activities. The use of mobile phones for online banking and cryptocurrency are two of the most important examples of FinTech, and these activities have made financial services more accessible and beneficial to the public (Brandt & Hermann, 2010). With the emergence of FinTech, the competitive landscape of financial services or banking industry has started changing. Until now, a lot of transformations have been made in the banking industry, some of which are mentioned below.
Increasing Competition
The threats posed by FinTech typically aim to improve the quality of financial activities. Today, all of the banks have started providing their customers with varying options of online banking as they know that the competition is very high and that their survival may not be possible without offering these facilities to the clients. In order to improve the customer experience, almost all financial institutions have started seeking acquisition opportunities or partnerships.
Changing the Business Model
The costs associated with compliance management are one of those core factors that force financial institutions or banks to change the way they target customer, do business and market their services or brands. The core purpose of this strategy is to urge bank managers to opt for new and advanced business models, replacing traditional techniques with better ones.
Regulatory Compliance
With time, regulatory compliance has become one of the core concerns of b...