The banking industry is not what it used to be 10 years ago… long queues for cash withdrawals, the powerful manager and ‘closed’ sign every evening. Today, we have busy executives transferring funds online in a busy metro or opening bank accounts online anytime, anywhere.
Five years down the line, this very traditional and conservative industry is going to become unrecognizable. With new disruptive technologies like digital, mobility, IoT and artificial intelligence – banks are getting rewired into a seamless network of software and machine and morphing from a brick and mortar entity to a virtual on the go services hub.
Driverless cars, banker-less banks and cashless transactions – all are in the realm of the possible today – thanks to the irreversible power of technology.
The new paradigm for the banking industry like all other industries is to evolve into a collaborative, customer-centric and agile organization. Today, customers have more choices than one can imagine and a shift from one bank/vendor to another is just a click away! A clear customer focus with a clear set of offerings is what will define the winners in the next-gen banks.
According to KPMG’s survey, the next transformative stage in Banking will be driven by customer demand, as opposed to regulatory change, which had driven significant changes to their business models previously. Banks are focusing on rapidly converging drivers of change – enhanced transparency that is demanded by customers and regulators alike, and are leveraging new tools and technologies as the primary means to connect with customers, boost revenues, and cut costs.
Below is an excerpt of the soon to be released Digital Banking Report entitled, ‘2016 Retail Banking Trends and Predictions’, with insights from a crowd-source panel of close to 100 global financial services leaders.
- The ‘Platformification’ of Banking
- Removing Friction from the Customer Journey
- Making Big Data Actionable
- Introduction of ‘Optichannel’ Delivery
- Expansion of Digital Payments
- Executing on Innovation
- Exploring Advanced Technologies
- Emergence of a New Breeds of Banks
- Mining New Talent
- Responding to Regulatory and Rate Changes
The digital revolution in banking has just started – traditional banks are blending standard ERP software with web and mobile apps to offer a more personalized banking experience.
Customers are demanding more and more of ‘banking transactions on the move’. Personalizing the customer experience such that he sees all that is relevant to him is what the digital transformation will aim to do over time.
Going digital is the only way to continue enhancing the customer experience – the ultimate integrated digital experience will be when banks by leveraging the power of technology will be able to provide their customers a fully integrated mobile banking experience – by allowing them to do all their banking activities from operating their account, to opening a new account, getting cheque books etc..
10 Digital Trends Banking Should Embrace:
- Designing Customer-Centric Apps
- Streamlining App Strategy
- Removing Friction from the Onboarding Process
- Using Data Analytics for Targeted Marketing
- Personalizing Functionality
- Personalizing Products and Content
- Investing in Open API Technology
- Building a Strategy to Compete with the Disruptors
- Investigating the Potential of Blockchain
- Creating a Seamless Multichannel Experience
Banks of the Future
10 percent of Starbucks revenue already comes from mobile financial services, Amazon runs its own application for receiving payments through mobile devices and Facebook allows its messenger users to transfer money directly to each other. Unless banks innovate fast they will soon become redundant.
Chips will replace credit cards and mobiles will be the new branches, data will be on the cloud and customers will be their own banker – in all this what will the new bank look like?