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.