Industry Trends – Banking

Banking Trends:

  • Cryptocurrencies
  • Cloud-based storage
  • Greater adoption of biometrics for identity-authentication purposes (face, voice, fingerprint, Eye recognition)
  • Digital banking development -> shrinking global bank branches
  • Open Banking -> transferring the ownership of an account information from the banks to the customer -> designed to increase competition within industry
  • Employing AI to help banks provide contextual, holistic advice to their customers; Chatbots
  • Blockchain solutions for payments
  • Customer-centric transformation
  • Banks involved in accelerators, incubators and training programs to have access to technology and talent

Challenges:

  • “All banks are basically the same” -> need to differentiate
  • Failure to provide good digital service = existential threat
  • Synthetic identity fraud
  • Increased competition from new market entrants (digital banks, FinTechs, institutions offering high-touch and high-tech branch services, e-commerce) that emerged in response to rapidly changing customer expectations and behaviours; this is forcing banks to invest in customer technology to prevent customer leakage
  • Enhancing cybersecurity -> AI will play a key role here -> critical to business continuity and limiting operating losses
  • Concerns of data and information vulnerability
  • To orchestrate the right mix of branches and digital offering
  • Risk: Speed to market may override attention to protection

Summary

Should focus on continuous change rather than radical transformation -> greater efficiency and scalability.

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