978. Insights: Innovating through crisis, how can banks stay ahead?

How AI, fintech, and digital transformation are reshaping banking and consulting in 2025 as financial institutions shift from innovation to survival strategy.

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About this episode:

Financial services is evolving at a rapid pace.
The pandemic was unprecedented, and banks and financial institutions are still dealing with its aftermath. Rising interest rates triggered by sharp, "hockey-stick” inflation led to the collapse of established banks like SVB and Credit Suisse.

Previously, the priority had been on innovation and customer experience. Suddenly, however, banks were facing real market instability and the threat of contagion. The focus shifted to securing core, business-critical operations.

So, what does all this mean for advice and consulting?

In this episode, David Barton-Grimleyis joined by a panel of experts in the consulting field to explore how analysts, advisories, and consultancies can better support financial institutions-helping them navigate the changing financial landscape with greater flexibility, speed, and impact.

This week's guests:

• Ross Gallagher - Head of Consulting at 11:FS
• Kate Drew - Director of Research, CCG Catalyst Consulting Group

Key discussion points

The shift from innovation to survival

• Banks are pivoting from innovation-focused strategies to survival-based decision-making.
• Regulatory pressure, fintech competition, and rising customer demands are driving this shift.
• Major events like the collapse of SVB and Credit Suisse have accelerated this mindset change.

The failure of traditional digital transformation

• Multi-year IT and digital programs often fail to deliver on expectations or ROI.
• Banks are now embracing agile, results-driven approaches over large-scale overhauls.
• Specialist consultants are helping steer efforts toward efficiency and practicality.

The role of AI in banking

• AI is promising but risky, especially when rolled out to customers in regulated environments.
• Smaller institutions must prioritize strategy, governance, and foundational readiness.
• AI should be seen as a portfolio of tools, each with distinct capabilities and limitations.

Why consultants must go deeper

• Clients want action, not theory—real expertise embedded within their teams.
• Shared ownership and hands-on problem-solving define modern consulting.
• High-level presentations no longer cut it in today’s complex market environment.

Fintech trends: from consumer to B2B

• VC funding is increasingly shifting toward B2B fintech providers.
• Banks are seeking best-of-breed solutions over traditional, bundled tech stacks.
• B2B fintechs are filling critical infrastructure gaps in banking.

Growth areas: corporate banking & treasury

• Innovation is expanding beyond retail into SME, corporate, and treasury services.
• These areas offer untapped potential for cost savings and process efficiency.
• Institutions are realising the ROI potential of modernizing back-office systems.

Future of consulting in the AI era

• AI is reshaping both consulting deliverables and business models.
• Firms with AI expertise are winning large-scale transformation work.
• The Intel–Accenture example illustrates a shift toward AI-powered outsourcing.

Advice for new consultants

• Empathy and curiosity remain core differentiators in consulting.
• Real-world, client-side experience is invaluable for building relevance and credibility.
• Staying focused on solving meaningful problems is timeless career advice.
  

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About Fintech Insider:

Fintech Insider by 11:FS is a bi-weekly podcast that covers everything from finance and banking to technology and the latest trends in financial services.

Our expert hosts, with hands-on industry experience, are joined by key decision-makers, VCs, and top reporters from across the financial landscape, including guests from companies like Stripe, Revolut, Plaid, PayPal, and Monzo. Together, they break down the biggest news and innovations shaping the space.

Our weekly news show drops every Monday, covering major stories like mergers, new product launches, regulatory shifts, and emerging tech trends. On Thursdays, our Insights show goes deeper into the hottest topics driving the future of finance, including AI in banking, decentralised finance, and the evolving landscape of embedded finance.

Whether you're already in the fintech game or just starting to explore, this is the #1 podcast for you.

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