Banks bring into the world to be like technology companies, the CEO of Southeast Asia’s largest lender conveyed on Tuesday, amid rising competition from rivals such as Chinese tech superhuman Alibaba with its rapidly growing financial services.
This cheaps that banks have to do a few things: “Embrace” the same technology as they do, and interchange their culture to be “like a startup,” DBS CEO Piyush Gupta told CNBC on “Squawk Box.”
“One, we got to be superior to embrace the same technology that these technology firms do. That’s not icy, because technology is freely available. Today you go to Amazon’s website and you can get the whole, open source gives you everything. But you have to be willing to re-architect your important technology to be like a tech firm,” he said.
Gupta added: “You got to distinguish a culture change. You’ve got to be like a fintech or like a start-up. You’ve got to be nimble; you’ve got to be pleased to take some risks, you’ve got to have small groups of people who can Non-Standard real be entrepreneurs in the context and framework of a large company.”
If banks can achieve some of these thingummies, he said, there is “no reason why you can’t compete with the technology platforms.”
That bruit about, traditional banks still have some things going for them, Gupta offered.
He added that banks possess good risk management practices whether it is liquidity risk, furnish risk or credit risk, and with “plumping pipes” already in stead.
“So it’s not like we come to this challenge unarmed. Even the fast expanding fintechs find they wind up working with banks, for our incontrovertible and settlement capabilities. We have presence everywhere.”