The banking and financial services industry is undergoing a paradigm shift. It’s a transformational change that is far reaching, and that has the potential to rock the very structure of the economy on which banks have been operating so far.
Discussed below are the top five defining trends of 2017, which will have a reverberating impact on the Banking & Financial Services industry as they move into the Digital economy.
#1 – Tech-Innovations Will Make Its Way Beyond Retail Banking
For the last few years, banks have been shelling out tons of money on digital banking. Till now, its benefits have been primarily directed towards improving consumer banking experiences. However, from now on, efforts will be more centralized around commercial/wholesale customers. Most top order banks have already fired their shots in integrating apps and products for their commercial business line.
#2 – Neo-Banks Will Turn into Full-Fledged Digital Banks
Last year, venture capitalists pumped in around US$250 million on Neo-Banks, in order to improve their consumer banking experience through digital services. Neo-Banks in the US and UK have already cashed the investment benefits, which helped them turn into full-fledged Digital Challenger Banks. Agile processes based on cutting edge technology will make these banks a premier choice for tech-savvy digital bankers.
#3 – Banks to Unleash the Potential of Internet of Things Makes (IoT)
The advent of smart wearables and connected devices have already begun the data burst. Till now, banking was an area which was not so high on the IoT impact list. This state will however soon change. Internet of Things is rapidly entering the banking scene, driving large-scale innovations on connected platforms much faster than expected.
#4 – Get Set for the Blockchain Tsunami
Of late, Blockchain has been the most talked about technology in the Banking and Financial Services industry. Even though banks were a bit weary of accepting Blockchain in the initial stages, they are now more than ready to greet the technology with open arms. At the recently concluded SIBOS, Singapore, banking executives from around the world confirmed their keen interest in integrating the Blockchain aka Bitcoin.
#5 – The Emergence of Algorithm, AI & Cognitive Computing
Regulatory compliance pressures are taking a massive toll on the banking profit margins. This is why cutting down on operational costs has become a crucial agenda for most banking organizations. Banks, to find an effective solution, are resorting to speedy adoption of algorithm based AI/Cognitive technologies. In recent future, core banking operations are first on the list to showcase a fully-automated banking architecture that ensures cost reduction and operational efficiency to a greater extent.
In 2017, more banks will take initiatives in Hackathons and incubators to adopt these trends.
Is your organization ready for these trends? eKutumb’s marketplace for banking technology solutions and services can assist your bank in gearing up for the digital economy of tomorrow!
Author: Kishore Kapoor
Kishore Kapoor an industry veteran of 31 years in global banking technology. A Founder & CEO of eKutumb.com – World’s first marketplace for enterprise software delivery and consulting business by creating value for all of industry stakeholders involved (customers, partners, individuals and investors) through a disruptive and trans-formative approach of doing business.