"In the past, banks built themselves from the inside out - and for decades, it worked. Products were developed around a sturdy core banking system and rigid business process to ensure security and trust, distributed through branch networks, and only then wrapped in a customer experience and brand veneer. But those days are over because customers and the market demand the opposite. Today's Fintech upstarts and digital-first neobanks have flipped the model on its head, designing their institutions from the outside in."
"High barriers to entry reinforced this model. Building a bank required heavy investment in branches, licenses, compliance, staff and years of preparation, which kept competition slow and scarce. The digital era has dismantled those barriers. Fintechs can launch in months using third-party tech stacks, APIs and cloud platforms instead of decades of infrastructure. Even individuals can issue tokens or digital assets in minutes."
Banks historically built from the inside out, centering products on core banking systems, rigid processes, and branch distribution while customer experience remained secondary. High barriers to entry — branches, licenses, compliance, staff and long lead times — sustained commodity-like product competition focused on rates and fees. Digital platforms, APIs and cloud infrastructure allow fintechs and individuals to launch rapidly, lowering entry costs. Customers now demand seamless experiences, emotional connection and value alignment, and can switch providers with a few taps. Competing only on process and price is insufficient. Traditional banks must invert their architecture and design offerings from the outside in.
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