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The Coexistence of Banking Paradigms

Posted by KingEclient on 20 October, 2021

The fast pace of change has resulted in a more rapid and dynamic transition across banking business models. The pace of this transition, which is fueled by technical advancements and a shift in many financial institutions’ cultural mindsets, has resulted in a world where several banking paradigms coexist and influence one another. Technology advancements, as well as business cases that examine previous scenarios, provide signs of what the future will look like. This is especially true when social trends encourage or influence technology advancements.

It’s critical to understand where we came from and where we are now in order to figure out where we’re headed. Carl Sagan once stated, “To comprehend the present, you must first understand the past.

Customers in the banking industry encounter a variety of scenarios based on the banks they deal with. We can identify and see the coexistence of three business paradigms: branch banking, omnichannel banking, and open banking, as well as a fourth, integrated banking, which the industry is quite likely to embrace in the next 5 to 10 years.


Why do different business mindsets and models exist simultaneously?” 


Successful financial institutions have the foresight to anticipate and respond to future technological shifts. Nonetheless, not all banks have the same ability to adapt to changing circumstances, change their corporate culture, or the flexibility to integrate the characteristics of the digital era. To put it another way, not all financial institutions evolve at the same rate or along the same lines.

The coexistence of different banking models in the same environment is enabled by the speed and nature of their transition, as well as other change agents such as changing market conditions, consumer demands, and regulatory institution activity.



Many financial institutions are fumbling down the path to the necessary change and transformation to stand out and become leaders in today’s financial business. Efforts are being made, and new ideas and technologies are being implemented, which may be useful in the short term, but are unlikely to be useful in the medium and long term unless these efforts are directed toward establishing the bank as a context-aware partner who will guide customers through day-to-day decisions. Otherwise, the bank will devolve into a reactive and disjointed operation that is solely driven by consumer requirements.


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