It has been an exciting season in the banking industry. Last week’s statement that the challenger lender Revolution was given a European Banking License demonstrates that digital-first banks are no more only the alternate opportunity but a true threat to heritage financial institutions. Together with the invention being pushed together by the business, there’s also been the strain of regulatory modification.
Here are my predictions space the tendencies we will see continuing or emerging in 2019…
#1, Large banks move little scale:
“Following the IT and client expertise struggles the largest UK retail banks have confronted in 2018, they are currently seeking to innovate. For this, they’re turning into nimble and advanced start-ups, supplying them with the deep pockets of banks that are insolvent. Uniting the equilibrium of recognized financial institutions and also the digital-first method of new entrants can cause some intriguing hybrid confirms who adopt the very best of both worlds, providing both superior customer experience and dependability.”
#2, Open banking goes mainstream:
We are yet to find that a dominant ecosystem for receptive banking emerges. As consumer awareness of the programme and its benefits increase, it is going to develop into a race to come up with the very first widely-adopted platform. People who can attain a crucial mass of consumers will secure massive quantities of long-term clients, offering a stable foundation to rely on through the upcoming few years of disturbance in the industry. Fin-techs who create the catch for instant customer interactions today, even when these clients bank using a proven manufacturer, could benefit greatly from improved brand recognition.”Also read: In IO 2019, Google wants People to Switch off Mobiles and Perform Electronic Detox However no one is Listening
#3, The AI stockbroker:
AI can make rapid decisions based on past layouts. This makes them great at calculating risk and buying inventory. We are seeing a few hedge funds hope their investments into AI stockbrokers. However, 2019 could be the year that these solutions become accessible to a far wider collection of retail banking clients, like HSBC’s robo-advisor trial declared this month. However, AI still has its own limitations — the execution of technology will merely deliver true advantages for clients when combined with individual imagination. Thus, entering 2019 we will see a lot more businesses get clever about how they’re employing and implementing these technologies.
I am eager to see the way the industry adopts new technology and navigates fresh challenges in 2019. What do you believe?