The global banking sector is becoming both more strategically focused and technologically advanced to respond to consumer expectations while trying to defend market share against an increasing array of competitors. A great deal of emphasis is being placed on digitizing core business processes and reassessing organizational structures and internal talent to be better prepared for the future of banking. This transformation illustrates the increasing desire to become a'digital bank'. The importance of innovation and developing new solutions that take advantage of data, advanced analytics, digital technologies and new delivery platforms has never been more important. We are seeing organizations innovate in targeting, expanding services, re-configuring delivery channels, delivering proactive advice, integrating payments and applying blockchain technology.
There has been a lot of chatter lately about an Amazon-branded checking account. While some see the possibility of another Amazon product as the latest proof that the e-commerce titan is a growing threat to the banking industry, others dismiss the news as same-old gossip for a company that already offers a lot of products and services in financial services. But it's not far-fetched to think Amazon has bigger plans than what it already offers in banking and payments. Over the past 10 years, Amazon has upended the retail space, and in the process, it has also transformed the logistics involved in home delivery. However, banks' real problem has nothing to do with what Amazon does.
In financial services, digital disruptors are coming, impacting traditional banks and credit unions as well as consumers. With the promise of personalized solutions and improved experiences delivered on digital channels, the potential for major changes to the banking ecosystem appears imminent. Despite this, few organizations are prepared for these changes based on research done this year by the Digital Banking Report. Not only are banking organizations faced with legacy bank office technology, but they are also impacted by outdated regulations, disparate data sources, internal silos, increasing external cyberthreats and a culture that has not changed in decades. To embrace the digital transformation necessary for the future, organizations must rethink how they use technology, people and processes to dramatically change business models and innovate for the future.
Consumers in Australia can track a parcel en route to the United Kingdom every step of the way, and to Peter Maddison, executive director of payments innovation at the Commonwealth Bank of Australia (CBA), they should be able to do the same with their digital funds. "I can send a AU$3 package from Sydney to London and see at any point in time where that is. We now, as a result of some of the API capability and some of the fantastic work being done around the gpi piece are going to have the capability to do that for transactions," Maddison said. See also: SWIFT's instant cross-border gpi payments test touted as a success Echoing a similar sentiment to Maddison, Niall Cameron, global head of Corporate and Institutional Digital at HSBC, said the issue of tracking is really important in the financial services industry. "I think we've taken it for granted in our personal lives or the retail industry -- you can track just about anything," he said.
The second annual report of our global research study, subtitled Innovations for the Cashless World, delves into the trends, needs, behavioral patterns and growth opportunities around payments and highlights five key trends supported by perspectives from 14 Visa executives. As the world moves from traditional, secure (1.0) payments into consumer centric (2.0) methods and channels, we see the seamless (3.0) future ahead of us. Today's consumers are embracing innovation with increasing speed, and payments are no exception. The 2018 research captures insights from more than 12,000 consumers from 20 countries, providing a truly global view of where payments are headed. The report looks specifically at payment maturity and innovation readiness to identify regions, channels, and technologies with the greatest potential.