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.