Question

You have been hired by the Board of Directors at Major Bank Co. to help them formulate a strategy in response to the growth of fintech companies in their sector. Major Bank Co. operates in the retail and commercial banking space, offering services including lending and deposits, payments, investment portfolio management and capital raising. Like other universal banks, Major Bank Co. also relies on the bundling of financial products to increase revenue and retain its customers.

(A) In your initial meeting, the longest-serving member of the Board of Directors, Jane, says Major Bank Co. has survived the threat of financial innovations in the past and is confident that Major Bank Co. will do so again this time around. Name 3 major financial technology innovations Jane could be referring to?

(B) Following your review, the Board of Directors asks you to outline the potential approaches Major Bank Co. can take to respond to the fintech challengers. What are their options? Outline and discuss two options.