Fast forwarding 10 years, the banking industry will look radically different to how it does today, according to a new report.
KPMG’s The Future of Digital Banking report has stated that the market-leading banks of tomorrow will not be limited by technology.
The multinational professional services firm is confident that the landscape for banking in 2030 will be far more competitive, efficient and innovative in delivering consumers “autonomous experience” in ways that are not yet possible.
Banks of the future will understand that all consumers have different wants and needs, where some customers will opt for an autonomous experience due to being time-poor, while others will want a more hands-on experience, according to the report.
For this to occur, banks must understand how technology is reshaping the way people work, live and play, the report said.
Institutions must embrace deeper knowledge around technology usage to help consumers manage increasingly complex, fragmented lives while giving them the confidence that their data is safe and secure, it continued.
KPMG said banking will be transformed across four primary areas in the coming years, with those outlined below:
- Data
As data becomes widely available in everyday objects, customers will understand and utilise this to their advantage and be able to extract more value from the products and services that they are offered, KPMG said.
- Business models
New data will also fuel new entrances on the banking scene, according to the report, with the example of neobanks offered up.
Such competition will have the effect of pushing the more traditional leaders on the banking block to explore new opportunities adjacent to their core offerings.
- Regulation
A shift to more technologically advanced and digital ways of working will require governments and regulators to come up with new ways of identifying and managing risks, as well as regulating the activities that banks are undertaking in this new landscape.
- Technology
Apart from the new ways of working as outlined above, improvements to artificial intelligence, blockchain, biometrics, internet of things and quantum computing will also result in transformation to the nature of services and how they are delivered, the report rounded out.
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