With the proliferation of technology, banking customers are living in a connected world with their experience from other industries influencing their expectations from their financial services provider. This has led to an evolving customer-bank relationship necessitating banks to be more customer-centric by embedding themselves in customers' lives to meet rising customer experience expectations. However, banks have been facing challenges in meeting customer expectations, as they are troubled with legacy challenges both in terms of technology and culture. This document aims to understand and analyze the trends in the banking industry that are expected to drive the dynamics of the banking ecosystem in the near future.
With technological advancement, artificial intelligence is set to touch and modify the financial sector, specifically retail banking in many different ways. A Narrative Science survey highlighted that 32 per cent of financial executive participants utilizes AI technology, such as voice recognition and predictive analytics. Moreover, an Accenture survey noted that 76 per cent of those surveyed believe most banks will use AI interfaces primarily for customer interaction by 2020. But AI is changing retail banking in more ways than one. IT costs are a pain point of retail banking, as they can account for as much as 10 to 15 per cent of a bank's total annual expenditures.
The open banking global trend is about to change the way financial data is accessed and shared. And it will offer numerous benefits if you're positioned to leverage it to create innovative apps and solutions. For an overview of the trend, best practices and more, don't miss this VB Live event! Across the globe, regulatory mandates are forcing some banks to adopt the open banking model, but along the way it has become one of most transformative trends in the banking world today. Customers should have full control over their data and how it's used, and be able to voluntarily share that data with other entities. The trend is buoyed by the boom in new open application programming interfaces (APIs) that connect banks with other institutions, and the global political and social trends concerning privacy and customer data.