The Digital Giants are the disruptive competitors to traditional banks rather than the fintech innovators that are merely a means to an end; Digital, organisational and cultural transformation.
Insurers should not ignore that either.
"Banks that successfully orchestrate a basic ecosystem strategy, by building partnerships and monetizing data, could raise their ROE to about 9% to 10%. Banks that can go further and create their own platforms might capture a small share of some nonbanking markets, which would elevate their ROE to about 14% — far above the current industry average." Source McKinsey
Same can be said for insurers
The spate of alliances between retail banks and fintech upstarts over the last couple of years "has helped solidify the notion that the land grab is over," argues McKinsey in its annual banking report. However, platform companies around the world, from Rakuten Ichiba in Japan to Amazon and Google in the US, are spreading their tentacles ever deeper into the profitable "distribution" side of banking.