Jim Marous starts his article with a powerful phrase, “Here are seven critical aspects of the new environment in the financial industry that both traditional banking providers and fintech firms must understand.”

He continues, “As the banking and fintech industries begin to merge through consolidation and collaboration, the focus will move beyond simply providing better payment, lending, money transfer and digital engagement experiences, extending to the entire financial services ecosystem according to a report from McKinsey.”

Marous then summarizes and comments on the seven areas according to McKinsey.

1. Expanded Scope
2. Increased Diversification
3. Improved Collaboration
4. Increased Consolidation
5. Normalized Valuations
6. Shifting Regulations
7. Emerging Ecosystems

Particularly, I found (7) of keen interest. The McKinsey report states “Ecosystems will likely develop to follow customer needs, rather than conform to traditional industry lines. Leaders in these ecosystems will need strong data-analytic capabilities to develop useful insights from the torrent of customer information available, and they will likely use fintech firms and others to develop the system and extract maximum value.”