"Every company will become a financial services company”
"Every company will become a financial services company”
Gili Hoch, EVP, Head of Strategy and Business Development at Isracard, was speaking at the Financial Innovation conference in Tel Aviv
Does the fintech world promote a reality where all companies will be financial companies and offer financial services? Gili Hoch, EVP, Head of Strategy and Business Development at Isracard, attempted to address this question at the Financial Innovation conference held on Monday in Tel Aviv.
"The dynamics of the change in the nature of companies already exist. In 2021, it was extensive, and it continues to expand." Hoch referred to research indicating that the fintech industry is projected to reach $7 trillion in the coming years.
According to Hoch, "Every company will become a financial services company. This process will significantly impact our lives, and its influence will continue to grow. Eventually, service and manufacturing companies will offer services like loans, deposits, and insurance payments. These services have existed in the past, but recent trends, including reduced computing costs and enhanced integration, have amplified their adoption."
Hoch emphasized that these developments enhance the service capabilities of businesses, aiming to increase sales and improve the customer experience.
"It won't surprise you to learn that individuals wake up in the morning with the intention of acquiring insurance. People want to consume, go on vacations, and purchase cars. They are not concerned with the intricacies of payment processes. Let's consider the purchasing experience on Booking.com as an example. A family planning a trip to Italy visits Booking.com to book hotels, experiences, and even airport transfers. From the family's perspective, everything is included. It is crucial for Booking.com to handle payments with all suppliers to avoid the risk of losing customers and potential fraud," Hoch explained.
“These advancements raise several significant questions in the new landscape. Who owns the customer? Will customers continue to engage with multiple intermediaries? Will the services be concentrated among a few major companies or decentralized? Will companies collaborate with one supplier or multiple suppliers? Will there be specialized niches? These questions will be answered in the coming years.”
