Massachusetts Institute of Technology (MIT) has released a new paper that outlines the key features, benefits, and strategic imperative of the Digital Bank of the Future (DBF).
The paper, “Digital Banking Manifesto: The End of Banks?”, is part of MIT’s financial technology innovation series and discusses the key requirements for a digital bank from three perspectives: customer, investor, and the bank itself.
- From customers’ perspective, MIT says that DBF should be able to provide holistic and customizable experience, mobile e-payment solutions, fully digital experience, seamless and inexpensive foreign exchange services, biometric technology, e-credit card, and access to p2p world.
- From investors’ perspective, the paper says that digital bank is an exciting investment opportunity and inevitable business step as legacy banks are no longer able to adequately service their customers' needs in the digital age. It lists several ways through which digital banks can generate value such as digital payments, digital wallet, multichanneling, smart big data and others.
- From bank’s perspective, it says that a digital bank has to be a cross between a Fintech company and a bank, adding that while a digital bank, similarly to a conventional one, can be organized into five divisions: Retail Banking, Private and Business Banking, Analytics and IT, Finance Management and Operations, and Risk Management.
Freely available at: http://cdn.resources.getsmarter.ac/w...sto_report.pdf
What do you think about digital banking? Really the end of banks?