Banking in 2030 will look nothing like it does today. According to Deloitte’s Bank of 2030: Transform Boldy research, financial services companies face myriad challenges including evolving customer expectations and new digital technologies.
Against this changing environment, incumbents and fintechs must develop strategies to prepare for the next decade.
This, says Deloitte, should be flexible enough to adapt to evolving business models and be customer-centric.
To aid this transformation, Deloitte sets out key trends that are changing the banking industry.
Cyber risk and financial crime: the ecosystem for financial crime and cybersecurity is changing rapidly says Deloitte, largely as a result of criminals finding new methods with which to attack banks.
At the same time, regulation is tightening in terms of both criminal penalties and the wider compliance regime. With this in mind, Deloitte explains, legacy or traditional methods are no longer enough to protect consumers. To address this, financial institutions should embrace new technologies such as Ai and analytics.
Digital technology: Key emerging technologies include AI and automation, blockchain, cloud and machine learning. Companies must work to understand how to best apply these, says Deloitte, as well as understanding how they should interact with legacy technologies.
Digital transformation: The time for experimenting with digital transition must pass. According to Deloitte, “it can be imperative to succeed in a changing business environment”. Simply, says the consulting firm, technology will be the driver of business growth and improved customer experience.
Data and analytics: Data will remain essential. However, the opening up of that data to third parties could have significant implications for traditional banks. This must be addressed through strategy development and operational choices.
Agility: Rapid transformation of the financial services industry brings a heightened pace of business model evolution. In such an environment, says Deloitte, the banks that succeed will be those that are nimble and fact to react to change. It says: “banks need to embrace change and harness the power of digital forces to innovate in smaller, bolder cycles”.
Monetising data and customer experience: Improving the customer experience will prove increasingly difficult as 2030 nears, Deloitte states. As previously mentioned, data will continue to be crucial, but the differentiator for success may lie in how companies use data to improve their services in a customer-centric manner.
Financial services ecosystem: All players in the financial services ecosystem must work together to succeed in the next decade. This includes fintechs, banks, regulators, technology companies and more, who should all work under a deliberate ecosystem strategy.
Read more about Deloitte’s predictions for 2030 here.
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