"FinTech is cannibalizing Banks" 

OCTO Technology White Paper on Digital Banks
October 31, 2014

Paris, October 15th 2014- OCTO Technology, an IT consulting, design and implementation company, presents a White Paper on digital banks.  While the Digital age has seriously affected companies across all industries, banks are still slow to enter the race despite early signs being observed.

Starting with visits to bank branches:  the global trend is downward  and isn’t expected to improve since most financial instruments  are now accessible online. The use of  “mobile first” trends are driven by the growing habit of using everything digital – “anywhere, anytime, and most importantly, whenever I want.”

FinTech + digital natives: Here comes the future of banking Innovation!

Since the subprime crisis, the mismatch between banking and real economic and social life has echoed in our governments calling for more competition, aware that the banks do not meet their commitments in financing the economy. The Digital Technology has resulted in the creation of new players who will destroy banking as we know it today. 

"Fintech has started to cannibalize banks, grabing their share, " says Sylvain Fagnent, Senior Consultant Expert in retail banking. They excel in meeting the real customers’ needs and sometimes reinvent a way to do so by focusing on front office, where the value is: CP Payment or P2P, credit , e-payment, loans to individuals, couponing, charging...

The "must do" of the digitization  

Is it the end of traditional banking? "Not yet. But historic banks have to take into account these new players," declares Stephen Périn, Senior Consultant at OCTO  Technology.  In this White Paper, the two OCTO consultants give a detailed account of several possible approaches to take the digital turn becoming data driven and valorize their customer data like Square, Kabbage or  Yoddlee do.  They are simultaneously  working on Big data, building architecture in real time, integrating the social network like Fidor  which,  thanks to its strategy with the social media, displays an acquisition cost below 25€ representing 10 times less than the average rate in US, opening up innovation by exposing services which can be used by an ElCurator activity, taking part into Fintech incubation projects as well as competition of the hackathon type.

"It is vital to keep a pioneer mind because there are very few complete digital banks, the new usages are yet to be written," says  Stephen Périn who assists many customers in the digital mutation of their companies.



Stephen Périn is a manager and consultant within the OCTO Digital TransformationDepartment. He has been with OCTO since 2009 where he accompanies his clients through their digital transformation. In addition, he directed the in-house collective volume “Les Géants du Web” (Giants of the Web) which explores 21 cultural, architectural and technical patterns. Stephen will soon have 15 years’ experience and in the past has held positions as R&D project manager, ESG/SRI analyst, startup CTO and business creator, in an array of sectors, including finance and non-financial business. He is a regular speaker in France and abroad at conferences and workshops, for businesses, the general public and academics.

Sylvain Fagnent has been a senior consultant at OCTO for 15 years. His background is in the applied and functional architecture of banking Information Systems in a variety of sectors such as retail, investment and private banking. Since 2007 he has been in charge of OCTO’s in-house training in the banking sector, and has been managing the sector R&D since 2012. From 2010, Sylvain has been a regular contributor to columns on innovation in retail and private banking. In 2014 he joined the OCTO Digital Transformation Department where, among other duties, he is in charge of monitoring the banking sector.