Banking Technology: What is in the Cart of the Future for Banks?
Leading banks will leverage banking technology and significantly more detailed consumer knowledge to place financial services at the point of need for customers, frequently at the sacrifice of brand awareness.
FREMONT, CA: The banking industry’s future driving forces are past evolutions: some are currently in progress; others will become much more significant in the coming years. Banks must rigorously determine and play to their strengths to compete in a world with more blurred boundaries, where smart devices, banking technology, and platforms can give the banking experience, ride-sharing applications can supply loans, and vehicles can be distributed ledgers.
By 2030, banks will be:
Leading banks will leverage banking technology and significantly more detailed consumer knowledge to place financial services at the point of need for customers, frequently at the sacrifice of brand awareness. To integrate finance with homes, machinery, vehicles, and other devices, distribution models are expanding to use marketplaces and banking technology like open APIs and 5G. As a result, many banks will face difficulties as their retail brands become less apparent to the general public.
Banks should be present in the ecosystems and banking technology products that their customers use to be relevant; to do so, they must stop viewing partnerships—and the intermediation of their brand—as a threat. Instead, banks will put together value constellations: interoperable, trusted environments that allow collaborators outside banking to weave value into frictionless, rich consumer journeys. Banks will be distinguished from all other touchpoints that provide embedded financial services by their role as ‘trusted advisors.’
Banks will use data with the help of banking technology to gain insight and elevate their role as keepers of customer trust. Consumers will have more control over their financial and digital lives due to their increasing role in consent and identity. Consumer trust is a crucial asset in this situation. Therefore, banks must take a firm stance on advising and foster financial intimacy with their consumers, who demand an RoC (Return on Consent) in exchange for their trust.
In a more useful age, where local and cooperative ideals align with matters of global responsibility, consumers will prefer banks that regulate with their environmental and social beliefs. As leaders establish value-driven ecosystems, open cultures that establish and nurture communities will set them apart. As a result, open banking technology innovation and participation through code, content, and knowledge will establish communities united by a common goal, resulting in collaborative product development for the benefit of all.