10 Technologies That Will Disrupt Banking in Next 5 Years


Tuesday, November 20, 2018     07.35AM / By Jim Marous, Co-Publisher of The Financial Brand and Owner/Publisher of the Digital Banking Report


The scope and speed of evolution in regulation, customer behavior and technology – coupled with the emergence of new competitors – mean that the future of banking will not be a continuation of the past. New technologies will transform banking as we know it, providing both opportunities and challenges for financial institutions.


A decade after the financial crisis, the near-collapse of the economic system is fading from memory. But, while the banking industry has largely recovered from a financial perspective, there are storm clouds on the horizon. While capitalization has improved significantly, revenue growth has become more challenging with the strategy of cutting costs having run its course. At the same time, banks and credit unions are playing catch up from a technology perspective at a time when consumer expectations are increasing exponentially.


Making the banking business even more difficult, smaller fintech and large techfin companies are developing solutions that use insight and digital technology to improve the customer experience across product lines. These new competitors threaten legacy financial institutions of all sizes. According to various consultancies, new players could capture up to a third of incumbent banks’ revenues in the next 2-3 years. Failing to respond could lead to the demise of less agile organizations.


The good news is that many of the new technologies that are threatening the banking industry also present significant opportunities. In fact, those organizations that can leverage big data, advanced analytics and new technologies to improve the customer experience can build trust, loyalty and revenues that are the keys to success in the future. According to Dan Cohen, Senior Vice President, Global Financial Services and Insurance at Atos, “Banks are at a crossroads.


Continuous finTech innovation and new technologies such as blockchain are disrupting the market. While it creates threats, it also opens multiple opportunities for financial services to reinvent themselves and thrive.”


Read Full Article Here



Major Financial Trends Impacting Banking

According to research from Atos, the four most transformational challenges and opportunities for the future of banking through the next 5 years include:

  • Response to customer needs. Ranked as the most important trend in each of the last 4 years in research done by the Digital Banking Report, financial institutions need to shift from physical interactions to digital engagement. For banks and credit unions that digitize customer journeys, there can be a significant benefit in revenues, cost reductions and customer satisfaction.
  • Optimization of costs. Because of the efficiencies of digital-only competition, banks and credit unions will need to consider divesting from non-core operations and leveraging intelligent automation. In addition, organizations will need to reinvent back office processes and replace aging infrastructure.
  • Creation of new revenue streams. Open banking and the use of APIs will open new opportunities for both cost reduction and revenue growth. As the banking ecosystem expands beyond traditional banking services, new products will be developed and segments served that will provide differentiated offerings and monetization opportunities.
  • Development of security and compliance systems. With customer data becoming a ‘product’ for many financial institutions, the need for enhanced security and advanced insights (AI) will become a differentiator from both a compliance and customer trust perspective. This can lead to reduced costs and potential business growth.



Expanding Digitalization and Innovation

Read Full Article Here


Proshare Nigeria Pvt. Ltd. 





Proshare Nigeria Pvt. Ltd.



Related News

1.       The Biggest Software Acquisition In History

2.      The 7 Most Affordable US-Based Web Hosts

3.      Natural Language Processing in Banking – Current Applications

4.      The Transformation Of The Traditional Finance Function

5.      Facebook Launches Video-call Device ‘Portal’ Amid Data Privacy Concerns

6.      High Speed 5G Technology Revolution In Africa – Vodacom Picks Lesotho As Testbed

7.      Nigerian Online Trading Portals Ranking Report:5 Takeaways

8.     The Single Biggest Breakthrough In Oil Tech This Year

9.      The Newly Redesigned Proshare Market: 8 Things to Note

10.  Israeli Public Now Able To Participate Digitally In Offerings Of TASE Companies

11.   5 Benefits of Google Wi-Fi Service Launch in Nigeria

12.  Market Lessons: Over $100B Gone In An Instant

13.  Robotics and Food Packaging

14.  VP Osinbajo Meets Top Google Executives in First Leg of US Investment Road Show

15.   Trends set to Impact Nigeria’s Banking Industry

16.  Three Breakthrough Technologies Changing The Energy Sector



Proshare Nigeria Pvt. Ltd.
Related News