Banking beyond 2017

Posted on January 02, 2018 by Sumita Kale

As fintech becomes more crucial in spreading access and adoption of financial services, banking is in a flux. See PwC report for Fintech Trends in India 2017  Globally, the top fintech trends for 2017 as listed by Chris Skinner will impact the progress of financial inclusion even in India: 

  1. Removing friction from the customer journey
  2. Rise of InsurTech
  3. Rise of RegTech
  4. PSD2 forces banks and FinTech to partner
  5. Platforms, APIs and Open Banking are the key
  6. Blockchain moves out of the labs into the real world
  7. Reform of the bank boardroom
  8. Chatbots, machine learning, AI
  9. China and emerging markets focus
  10. Cybersecurity is a big worry

All depends on how the banking industry takes on the new tech firms. As a prescient article by David Birch - Forget banks, in 2018 you'll pay through Amazon and Facebook - notes: 

But when Google feeds all the data from someone's bank accounts into their advertising engines it's fairly certain that bank profits - based on information asymmetries, product friction and brand loyalties - will vanish.

To stay in the loop, retail banks may choose a strategic option built around identity, trust and reputation - if they get their act together and regain thought leadership in the space. If not, 2018 will be the start of a fundamental realignment as banks become heavily regulated pipes for tech giants to use for their profit.

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