The financial services industry is one of the industries that has been most impacted by digital disruption, and we saw numerous significant trends and developments.
Here are some financial trends that are impacting banking industry.
2. The scope and speed of evolution in regulation,
customer behavior and technology – coupled
with the emergence of new competitors – mean
that the future of banking will not be a
continuation of the past.
New technologies will transform banking as we
know it, providing both opportunities and
challenges for financial institutions.
3. RESPONSE TO
CUSTOMER
NEEDS.
Ranked as the most i mportant trend i n
each of the l ast 4 years i n research done
by the Di gi tal Banki ng Report, fi nanci al
i nsti tuti ons need to shi ft from physi cal
i nteracti ons to di gi tal engagement.
For banks and credi t uni ons that di gi ti ze
customer j ourneys, there can be a
si gni fi cant benefi t i n revenues, cost
reducti ons and customer sati sfacti on.
4. OPTIMIZATION
OF COSTS
Because of the effi ci enci es of di gi tal -onl y
competi ti on, banks and credi t uni ons wi l l
need to consi der di vesti ng from non-core
operati ons and l everagi ng i ntel l i gent
automati on.
In addi ti on, organi zati ons wi l l need to
rei nvent back offi ce processes and repl ace
agi ng i nfrastructure.
5. CREATION OF
NEW REVENUE
STREAMS.
Open banki ng and the use of APIs wi l l open
new opportuni ti es for both cost reducti on
and revenue growth.
As the banki ng ecosystem expands beyond
tradi ti onal banki ng servi ces, new products
wi l l be devel oped and segments served
that wi l l provi de di fferenti ated offeri ngs
and moneti zati on opportuni ti es.
6. DEVELOPMENT
OF SECURITY
With customer data becomi ng a ‘ product’
for many fi nanci al i nsti tuti ons, the need
for enhanced securi ty and advanced
insights (AI) wi l l become a di fferenti ator
from both a compl i ance and customer trust
perspecti ve.
Thi s can l ead to reduced costs and
potenti al busi ness growth.