Capgemini News Blog

Capgemini News Blog

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2016 predictions: top ten trends in banking

Category : Technology

The banking industry today is in a state of flux, with multiple technology, regulatory and demographic factors cutting across the length and breadth of the value chain. These factors are impacting the way banks conduct their business, as the traditional banking methods are not enough to meet increasing customer experience expectations and improve profitability.

Non-banking service providers in the form of fintech players are causing disruption and disintermediation, often targeting discrete, highly profitable segments of the banking value chain. This has led to innovation in different forms taking centre stage, resulting in the unbundling of financial services.

The industry is also witnessing the emergence of multiple trends that will influence how it functions over the medium and long term. Here are 10 trends that we’re seeing:

1.       Non-traditional players are increasingly disrupting profitable banking frontiers

2.       Banks continue to focus on innovation investments to retain and enhance competitive differentiation

3.       As cyber threats increase, banks are investing in security systems

4.       Banks are increasingly using cloud services for core business activities

5.       Banks will continue to leverage digital technologies to enhance customer experience

6.       Banks are investing in modern core banking solutions to transform legacy systems

7.       Banks and non-banks are focusing on distributed ledgers as a transformational opportunity

8.       Banks are working to fully integrate risk management and compliance practices

9.       Banks are embracing advanced analytics in addition to traditional business intelligence solutions

10.   Banks are focusing on financial inclusion and awareness for business growth and customer engagement

To find out more about each of those trends, read our ‘Top 10 Trends in Banking in 2016’ paper.

 

About the author

Magda Bulska
Magda Bulska
Magda is responsible for managing Capgemini’s media relations programme and supporting its digital and internal communications activities. Before joining Capgemini in 2015, she ran PR campaigns in the UK and across EMEA for a number of blue chip companies and start-ups. Originally from Poland, Magda is passionate about (in no particular order) good films, travel photography, diversity and discovering quirky places all around the UK.

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