REDWOOD CITY, Calif. and MUMBAI, India, June 20, 2017 /PRNewswire/ -- Retail banking has long been a tech-intensive industry. However, a new study
from the Clayton Christensen Institute for Disruptive Innovation, in collaboration with Tata Consultancy Services (BSE: 532540,
NSE: TCS), examines the competitive impact of recent digitized banking products and services, and how "FinTech" providers –
having few similarities to traditional banks – are attacking virtually every product category in banking.
The four part series is titled, "Banking on Disruption," written by Subhajit Das and
Aroop Gupta, Visiting Research Fellows at the Christensen Institute from Tata Consultancy
Services. They use the theory of Disruptive Innovation – the process by which new entrants use technology and innovative business
models to provide less expensive, simpler and more accessible services – to assess the impact of FinTech on three retail banking
segments: payments, wealth management and lending.
The study shows that in each product category, new entrants pose a competitive threat to banks, but the conditions are not
always ripe for disruption. Instead, many FinTech innovations are being launched to sustain or improve existing products, making
them attractive for both new entrants and existing banks. Therefore, as long as incumbent banks are incentivized to adopt these
solutions, rather than ignore them, disruption could be less of a factor. But this does not mean disruption is impossible,
particularly if FinTech entrants are able to scale up from a foothold in an underserved market.
"Whether FinTech entrants or incumbent banks, individual organizations must make a careful assessment of the disruptive and
sustaining potential of innovations in their respective industry," said Subhajit Das, co-author of
the reports. "Doing this will enable them to stay ahead of their immediate competition and thrive in this period of change."
"The consumer lending space is where we see the most significant threat today, with the current wave of innovation and new
entrant competition having the most impact on consumers," added Aroop Gupta.
The full study can be found at www.christenseninstitute.org/publications/retail_banking.
The Clayton Christensen Institute for Disruptive Innovation (www.christenseninstitute.org) is a nonprofit, nonpartisan research organization dedicated to
improving the world through disruptive innovation. Founded on the theories of Harvard professor
Clayton M. Christensen, the Institute offers a unique framework for addressing complex social
issues like education, healthcare, and economic growth.
Tata Consultancy Services Ltd (TCS) is an IT services, consulting and business solutions organization that delivers
real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated
portfolio of IT, BPS, infrastructure, engineering and assurance services. This is delivered through its unique Global Network
Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India's largest industrial conglomerate, TCS has over 387,000 of the world's best-trained consultants in 45
countries. The company generated consolidated revenues of US $17.6 billion for year ended
March 31, 2017 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National
Stock Exchange) in India. For more information, visit us at www.tcs.com
To stay up-to-date on TCS news in North America, follow @TCS_NA. For TCS global news, follow @TCS_News.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/retail-banking-study-highlights-digital-disruption-300476638.html
SOURCE Tata Consultancy Services