BCG has joined our fintech community as a corporate member. Carlo Bravin, Principal of Boston Consulting Group, tells how this company has approached the sector, gives an overview of the situation in the Italian market and reveals some of the objectives of its entry into Fintech District.
How would you describe the transformation taking place in the financial sector?
In the last few years, financial institutions have undergone numerous waves of transformation: from rethinking their capital structure to a new interest rate scenario.
In just a few years, financial institutions have had to start rethinking their way of doing business. At the same time, consumers have also changed and have become increasingly distant from the typical range of products and services offered by financial institutions. Think, for instance, of how today’s consumers think of Amazon, Google and Netflix as examples and benchmarks of service, ubiquitous and highly personalized. All in all, digital has become a fundamental part of the banks’ strategy and I think it will remain fundamental in the years to come.
What’s happening with the arrival of fintech and big tech?
In this context of change, new players have emerged in the value chain: fintechs. They have shown that they are able to innovate and respond to customer needs in a much more effective and efficient way than financial institutions. From payments to insurance to wealth management, a multitude of new players have emerged everywhere. Just think that since 2010 they have grown from a few hundred to more than 10,000 companies. In the meantime, the capital injected into these companies has also increased exponentially, reaching more than 120 billion euros in recent years. We believe that this phenomenon is extremely important for financial institutions. It also shows how banks and other entities are injecting more and more capital into this sector, going from 5% to over 50% of the capital available these companies in a few years.
What is BCG’s role and why did you choose to join the Fintech District?
At BCG, we help major financial institutions transform and innovate. We do this with numerous approaches: from leading discussions on the world’s major technology hubs; to building innovation startup ecosystems; to using our data analytics or venturing companies. I believe that the Fintech District is a natural partner and a powerful resource for the entire context of Italian financial institutions.
What are the objectives for this membership and your contribution?
At BCG, we want to play our part in three different ways. First, by bringing our perspective as strategic advisors and innovation experts. We have always supported the world’s leading financial institutions in transforming and innovating. As experts in innovation, we continuously track the evolution of the fintech sector through a permanent institution. Secondly, we want to open up our international network to the community. Italy is at the head of the Mediterranean region, which also includes Israel, where we have a technology hub with more than 500 companies already collaborating with us.
Finally, we want to bring our talents to Fintech District and make sure that we not only enhance our skills and our capabilities but at the same time we are also enriched.
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