Trends in Banking

Shaping the future of banking together.

In eight chapters, this trend report high­lights dif­fer­ent dimen­sions that will influ­ence and change the future of bank­ing. The study provides inform­a­tion on cur­rent trends, tech­no­lo­gies, know­ledge and research in the areas of PSD2 — Regulations, Digital Payment, FinTech, Customer Experience, New Touchpoints, Adaptive Banking IT, Innovation Methods and New Working Cultures in banking.

We show you what you need to know about digit­al trans­form­a­tion in the bank­ing sec­tor and give you insights and ideas for the future. This trend report is writ­ten by USEEDS° for Consorsbank.

#1 A perfect storm

The reg­u­lat­ory change of the mil­leni­um and how it will affect banking.

The fin­an­cial crisis has exposed weak­nesses in the trans­par­ency of fin­an­cial mar­kets which can con­trib­ute to harm­ful socioeco­nom­ic effects. Strengthening trans­par­ency is one of the shared prin­ciples to strengthen the fin­an­cial sys­tem as con­firmed by the G20 Leaders’ state­ment in London on 2 April 2009’ (EU LEX) No 6002014. Regulated access to data will res­ult in increased demand for per­son­al­ized ser­vices and cus­tom­er exper­i­ence. What does that mean for the bank of tomorrow?

#2 Digital payment

Payment is an integ­ral part of everyone’s daily life, enabling many great exper­i­ences, from buy­ing sweets for your kids, to begin­ning the New Year with a gym sub­scrip­tion or book­ing that sum­mer holiday.

Payment galore! And yet, the actu­al act of pay­ing is not con­sidered a great exper­i­ence in itself. But at its best, the act of pay­ment is so easy that you don’t even notice it. How do we get there, how will digit­al pay­ment develop?

#3 Fintech factor

The rela­tion­ship between banks and fintechs has come of age, with both sides hav­ing gained valu­able exper­i­ence in deal­ing with each oth­er over the last few years. Since then, the mar­ket envir­on­ment has com­pletely changed, and some import­ant les­sons have been learned along the way. The rela­tion­ship between fintechs and banks has matured.

#4 Customer experience

The cus­tom­er exper­i­ence is a com­plex aggreg­a­tion of thou­sands of micro-experiences that a cus­tom­er has with your brand over time, and each one presents count­less oppor­tun­it­ies to engender loy­alty. In bank­ing busi­ness, the main focus is on cus­tom­er rela­tions and his exper­i­ence. There are myri­ad vari­ations and out­comes, all of which require strategy and stew­ard­ship. How do we cre­ate cus­tom­er exper­i­ence in bank­ing to con­vince the people?

#5 New Touchpoints

What does Siri have to do with the bank of tomor­row? Artificial intel­li­gence, robots, and con­ver­sa­tion­al design are today embed­ded in con­sumers’ lives, act­ing as vir­tu­al per­son­al assist­ants and mak­ing daily life a lot more effi­cient. People inter­act with these applic­a­tions really con­fid­ent and have their needs met in ways that are as indi­vidu­al, respons­ive, and adapt­able as humans them­selves are. How does this impact the brand-to-consumer exper­i­ence? About the design and engin­eer empathy.

#6 IT platform

Adaptive IT strategies for banks. We need to rethink the bank­ing IT archi­tec­ture. How do we improve new IT eco­sys­tems for tomor­row’s bank­ing? The leg­acy sys­tems of tra­di­tion­al banks often con­sist of a com­plex set of hard-coded, dated IT com­pon­ents, mak­ing it almost impossible to keep up with fintech innov­a­tions in the bank­ing busi­ness value chain. To stay com­pet­it­ive, leg­acy sys­tems need to be rebuilt as a net­work of com­pon­ents, con­nec­ted with APIs and thus open to new part­ners. Will it be the devel­op­ment of a new open bank­ing platform?

#7 Innovation methods

Designing the New! With rap­id tech­no­lo­gic­al advance­ment, innov­a­tion is devel­op­ing at expo­nen­tial speed. Organisations need to adapt to the real­ity of an ever-evolving busi­ness envir­on­ment. The ulti­mate chal­lenge for an organ­isa­tion is how quickly it can change, to offer rap­id innov­a­tion in its think­ing, oper­a­tion and deliv­ery. How will this affect the bank­ing of tomorrow?

#8 Culture

The paradigm shift toward self-managing teams. In the old days, work­ers turned up to the office and did what they were told. Today, busi­ness lead­ers have vis­ion, but work­ers are empowered to man­age them­selves. That’s why the greatest organ­isa­tions offer inspir­a­tion and a sense of pur­pose to their employ­ees’ lives. Forget the old pyramid-based hier­arch­ies and attract the greatest tal­ents of the cur­rent gen­er­a­tion, in bank­ing busi­ness as well.