Latest news with #FutureofFinance
Time of India
2 days ago
- Business
- Time of India
From trading floors to retail loans, traditional banks lose ground to tech-savvy challengers: BCG
Traditional banks are struggling to keep pace with fast-moving, tech-driven financial rivals, even as the overall financial services sector continues to grow. This is the central finding of Boston Consulting Group's latest Future of Finance report. 'Financial services revenues are growing – but banks are not capturing their fair share,' BCG says. The report observes that value is shifting away from traditional banks to fintechs, private credit funds, non-bank liquidity providers, and digital-native banks. 'Maturing digital assets appear to be on pace to cause significant disruption, with most banks currently on the outside looking in,' it adds. Digital attacker banks have seen the highest growth among financial players. According to BCG, these banks have recorded revenue compound annual growth rates (CAGR) of 85–100% over the past five years. They are followed closely by private credit players and retail trading platforms. In contrast, traditional banks have posted revenue CAGR of just 10–15%, even though they still hold the largest share of balance-sheet assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esse novo alarme com câmera é quase gratuito em Guarujá (consulte o preço) Alarmes Undo The advantage of these challenger firms lies in their use of scalable platforms, lean cost structures, and digital-first models. 'Non-traditional bank competitors are generating new revenue pools,' BCG says. 'The best attackers are positioned for rapid growth, thanks to modern technology stacks and front-to-back digitised operating models.' The disruption is not limited to retail finance . In capital markets too, boutique advisory firms and non-bank market makers are steadily eating into the fee income of large banks. 'Private credit has been gnawing away at bank share, particularly in the US,' the report says. Live Events Traditional banks are also facing deep-rooted structural challenges. Their fee income is declining. Productivity from non-interest income has dropped across all regions. Meanwhile, cost pressures continue to rise. Despite having invested in technology for years, their efficiency gains are starting to slow. 'Many banks struggle to counter these trends,' BCG says. The report also points out that pricing remains an underused tool for improving performance. The difference in cost efficiency is stark. According to the report, the cost-to-serve for neobanks is often only one-tenth that of traditional banks. 'New competitors are winning on productivity,' BCG says. Investors, too, are taking note of this growing gap. In regions such as East Asia and the Eurozone, most bank stocks are now trading below their book value. 'Investors are avoiding banks that may be in a vicious cycle of outdated operating model and low profitability,' BCG warns.
Time of India
2 days ago
- Business
- Time of India
'Traditional banks losing share to fintechs globally'
MUMBAI: Traditional banks are losing ground in the fast-evolving financial services space to agile, tech-driven rivals. Even as overall sector revenues grow, incumbents struggle to hold on to their share, according to Boston Consulting Group's latest Future of Finance report. "Financial services revenues are growing - but banks are not capturing their fair share," BCG says. The value, it notes, is shifting to fintechs, private credit funds, non-bank liquidity providers, and digital-native banks. "Maturing digital assets appear to be on pace to cause significant disruption, with most banks currently on the outside looking in." The fastest-growing players are also the most digitally savvy. Digital attacker banks clocked 85-100% CAGR in revenues over the past five years. Private credit players and retail trading platforms are close behind. Traditional banks, in contrast, posted only 10-15% CAGR, despite holding the largest share of balance-sheet assets. The challengers' edge stems from scalable platforms, lean cost structures, and a digital-first approach. "Non-traditional bank competitors are generating new revenue pools," BCG says. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 임플란트 최대 할인 지원해드려요 임플란터 더 알아보기 Undo "The best attackers are positioned for rapid growth, thanks to modern technology stacks and front-to-back digitised operating models." The disruption extends beyond retail finance. In capital markets, boutique advisory firms and non-bank market makers are chipping away at incumbents' fee income. "Private credit has been gnawing away at bank share, particularly in the US," the report says. At the same time, banks are grappling with long-term structural challenges. Fee income is in decline, non-interest income productivity dropped across geographies, and cost pressures are rising. Despite years of tech investment, efficiency improvements are slowing. "Many banks struggle to counter these trends," BCG says, noting that pricing remains an underused lever. Neobanks' cost-to-serve, the report adds, is often a tenth that of incumbents. "New competitors are winning on productivity." Investors have picked up on this divergence. In East Asia and the Eurozone, most bank stocks trade below book value. "Investors are avoiding banks that may be in a vicious cycle of outdated operating model and low profitability," BCG warns. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
Traditional banks lose market share to digital competitors in financial services
Mumbai: Traditional banks are losing ground in the fast-evolving financial services space to agile, tech-driven rivals. Even as overall sector revenues grow, incumbents struggle to hold on to their share, according to Boston Consulting Group's (BCG) latest Future of Finance report. 'Financial services revenues are growing—but banks are not capturing their fair share,' BCG says. The value, it notes, is shifting to fintechs, private credit funds, nonbank liquidity providers, and digital-native banks. 'Maturing digital assets appear to be on pace to cause significant disruption, with most banks currently on the outside looking in.' The fastest-growing players are also the most digitally savvy. Digital attacker banks clocked 85–100% CAGR in revenues over the past five years. Private credit players and retail trading platforms are close behind. Traditional banks, in contrast, posted only 10–15% CAGR, despite holding the largest share of balance-sheet assets. The challengers' edge stems from scalable platforms, lean cost structures, and a digital-first approach. 'Nontraditional bank competitors are generating new revenue pools,' BCG says. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trending in in 2025: Local network access control [Click Here] Esseps Learn More Undo 'The best attackers are positioned for rapid growth, thanks to modern technology stacks and front-to-back digitised operating models.' The disruption extends beyond retail finance. In capital markets, boutique advisory firms and nonbank market makers are chipping away at incumbents' fee income. 'Private credit has been gnawing away at bank share, particularly in the US,' the report says. At the same time, banks are grappling with long-term structural challenges. Fee income is in decline, noninterest income productivity dropped across geographies, and cost pressures are rising. Despite years of tech investment, efficiency improvements are slowing. 'Many banks struggle to counter these trends,' BCG says, noting that pricing remains an underused lever. Neobanks' cost-to-serve, it adds, is often a tenth that of incumbents'. 'New competitors are winning on productivity.' Investors have picked up on this divergence. In East Asia and the Eurozone, most bank stocks trade below book value. 'Investors are avoiding banks that may be in a vicious cycle of outdated operating model and low profitability,' BCG warns. However, a few outperformers are bucking the trend. These banks follow four strategies: full-scale digitisation, building multiproduct digital relationships with customers, narrowing focus to high-return businesses, and pursuing digital-led M&A. 'Banks that generate a significant portion of their revenue from noninterest income—such as wealth management, payments, and advisory services—tend to be more resilient,' BCG says. 'The overall value shift away from banks might seem relatively small so far, but its trajectory should encourage banks to take bold action to capture their fair share,' BCG cautions. Without decisive reform, banks risk becoming 'commoditised providers of balance sheets and risk management.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hi Dubai
13-05-2025
- Business
- Hi Dubai
Dubai FinTech Summit Opens with Global Focus on Innovation and Financial Transformation
Dubai launched the third edition of the Dubai FinTech Summit today, bringing together over 9,000 participants from 120 countries under the theme 'FinTech for All.' Held at Madinat Jumeirah and organised by the Dubai International Financial Centre (DIFC), the event aims to position the emirate as a global hub for financial innovation. Under the patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the two-day summit was inaugurated in the presence of His Highness Sheikh Ahmed bin Saeed Al Maktoum, reinforcing the UAE's growing reputation as a leading FinTech centre. The event draws more than 1,000 investors, 300 speakers, and 200 exhibitors, highlighting Dubai's appeal as a business-friendly, tech-forward environment. Dedicated start-up and country pavilions, along with the FinTech World Cup, provide a global stage for emerging solutions. Strategic discussions are being held on key trends like AI integration, sustainability, and the evolving role of digital finance. DIFC also unveiled its first Future of Finance report, showcasing the transformative impact of AI and FinTech on traditional financial models. The report identifies major opportunities in digital banking, cloud-based infrastructure, and hybrid product development. During his opening remarks, DIFC Governor Essa Kazim announced the Dubai Future Finance Week, scheduled to debut in 2026, which will consolidate major financial events under one global platform. It is expected to attract over 40,000 participants. Dubai's FinTech ecosystem has expanded rapidly, with over 1,300 AI and innovation firms from 63 countries now based in DIFC. Start-ups have raised more than $4 billion globally, strengthening Dubai's position among the top five global FinTech centres. The summit continues tomorrow with more high-level sessions featuring global financial and regulatory leaders. News Source: Dubai Media Office
Mid East Info
29-04-2025
- Business
- Mid East Info
DIFC announces 35% leap in insurance business during largest ever Dubai World Insurance Congress - Middle East Business News and Information
DIFC welcomes 1,700 professionals from 82 countries to the largest ever Dubai World Insurance Congress Centre announced 35% leap in insurance and (re)insurance business with Gross Written Premiums at USD 3.5bn generated by 125 insurance-related entities Launch of first ever report into the outlook for the global insurance industry during the Dubai World Insurance Congress 2025 encompassed within the Future of Finance series Dubai, UAE; April 2025: Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa and South Asia (MEASA) region, is currently hosting the largest ever gathering of insurance and reinsurance professionals at the Dubai World Insurance Congress. The event is welcoming 1,700 attendees from 82 countries, consolidating DIFC position as the only insurance and (re)insurance hub in the region. Over 6,000 deal-making meetings have been scheduled by attendees. Co-hosted by Global Reinsurance (GR), the Dubai World Insurance Congress attendance has grown from 1,300 delegates in 2024, with registrations closing a month before the event due to unprecedented demand. The event has been extended to three days and focusing on new trends in the industry including climate change, geographic updates, technological transformations, emerging risks, new ways of modelling risks and more. Reflecting the magnitude of insurance and (re)insurance business being undertaken in DIFC, during the opening session of the Dubai World Insurance Congress Alya AlZarouni, Chief Operating Officer at DIFC Authority announced the Centre recorded a 35 per cent leap in gross written premiums from USD 2.6bn to USD 3.5bn during 2024. During day one of the Congress, DIFC and its research partner Asia House, unveiled an exclusive report titled 'Embedding Resilience: Opportunities for the Global Insurance Industry' highlighting significant prospects for insurers and reinsurers as the sector seeks to narrow the gap between insured and uninsured assets, and ushering in much needed investment. Commenting on the report, and the contribution of DIFC's insurance sector to Dubai's economy, Arif Amiri, Chief Executive Officer of DIFC Authority commented: 'DIFC is well positioned to broaden and deepen its role as the region's leading insurance hub, thanks to its progressive and proportionate laws and regulations. DIFC's proven and stable environment for financial services firms and the UAE's visionary leadership have helped Dubai position itself as a strong base for insurance firms as evidenced through gross written premiums for 2024 surging by 35 per cent to reach a record high of USD 3.5bn. Over 125 insurance and reinsurance entities call DIFC their home, and we urge them to capitalise on the themes identified in our first-ever report on opportunities for the global insurance industry.' The report highlights that The USD 8trn global insurance industry is growing, spurred on by strong demand for its capacity to make economies and businesses more resilient to extreme weather events and cyberattacks, both of which are growing infrequency and severity. This boom is echoed in the Middle East, where the sector has been buoyed by a need for insurance to safeguard capital flows into the region's growing construction and energy mega-projects. The Middle East insurance sector is thriving and well-positioned to continue expanding on the back of heavy regional investment in mega tourism, retail and infrastructure projects aimed at diversifying economies away from fossil fuel production. Dubai, for example, was ranked first globally for greenfield foreign direct investment (FDI) projects in tourism in the first half of 2024. Consumer awareness in the region and uptake of insurance products is also growing. In part due to a favourable regulatory environment, Dubai International Financial Centre (DIFC) is attracting more captive insurers, InsurTechs, and building on its role as a global hub for managing general agents (MGAs). More MGAs will strengthen the local insurance market, increase choice of products, and widen the use of insurance. Insurers are exploring how artificial intelligence (AI) can streamline claims processing, customisation and distributing products and services. InsurTechs, once seen as a potential competitor, are shifting to collaboration with incumbents to mitigate regulatory and investment costs. Web3 and crypto assets, meanwhile, offer insurance growth opportunities as decentralised finance emerges as a key global finance trend. DIFC strives to fortify the insurance ecosystem through continuous engagement, transparent communications, access to timely data and scope to nurture talent and provide education. These are meaningful advantages that will encourage most insurers to recommend Dubai and DIFC as a global hub for insurance and reinsurance. About Dubai International Financial Centre: Dubai International Financial Centre (DIFC) is one of the world's most advanced financial centres, and the leading financial hub for the Middle East, Africa, and South Asia (MEASA), which comprises 77 countries with an approximate population of 3.7bn and an estimated GDP of USD 10.5trn. With a 20-year track record of facilitating trade and investment flows across the MEASA region, the Centre connects these fast-growing markets with the economies of Asia, Europe, and the Americas through Dubai. DIFC is home to an internationally recognised, independent regulator and a proven judicial system with an English common law framework, as well as the region's largest financial ecosystem of 46,000 professionals working across over 6,900 active registered companies – making up the largest and most diverse pool of industry talent in the region. The Centre's vision is to drive the future of finance through cutting-edge technology, innovation, and partnerships. Today, it is the global future of finance and innovation hub offering one of the region's most comprehensive AI, FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programmes, and funding for growth-stage start-ups. Comprising a variety of world-renowned retail and dining venues, a dynamic art and culture scene, residential apartments, hotels, and public spaces, DIFC continues to be one of Dubai's most sought-after business and lifestyle destinations.
