According to the global research firm Gartner traditional banks will continue to have an edge over internet banking despite the increasing hype surrounding digital firms eliminating mainstream banks.
This is despite the fact that the success of internet continues to raise doubts over the continued viability of brick and mortar establishments in retailing and financial services sector. Internet-oriented mega-firms are being viewed as the commercial enterprises of the future. However, in near future, these developments are not going to impact retail banking and its importance in the market.
Gartner notes that the digital mega firms are adept at data management and analytics both from the technological as well as business model perspective. They are also strong in extending their value chain analysis beyond the core offering and identifying new business opportunities. However, unlike traditional banks they lack the support and will to match the level of security, privacy required to support a banking proposition.
However, Gartner, points out that the traditional banks too have to map out the path for their future growth. Since, traditional models no longer are relevant to providing a complete consumer experience, banks need to either restructure themselves or look for new business models to sustain in market.
