Banks exist to serve the financial needs of consumers, through whatever avenue works best. With the rapid evolution of technology, more tools and resources are available than ever before to determine and meet those needs. Personalization in banking works when the customer is the focus, but without customer-centricity as their anchor, banks drift from what really matters. What steps can banks take to stay focused in today’s changing financial environment?
There has been a rapid increase in the size and number of investments into UK fintechs with the likes of Monzo and Revolut leading the charge. Interestingly, it is not just the VC funds driving this; banks are also investing or in many cases, acquiring fintech companies outright.
Make no mistake about it: Open banking will transform how the financial industry operates. The movement has yet to realize its potential, but the shift toward rich, data-led customer experiences is just around the corner.
Competition is intensifying in the banking sector, with fintech start-ups, technology giants and social-media leaders targeting various parts of the financial-services profit pool.
The first week of August saw Facebook announce that it had drawn up proposals with major investment banks and credit-card companies to form data-sharing partnerships. According to the Wall Street Journal(WSJ),
2017 has been a good year for US stock-market indices, in large measure due to the staggering performances of the Big Five of the technology sector, which are hitting levels not seen since the dotcom boom 20 years ago. Characterized by unmatched success in such areas as platform strength, innovation reinvestment, acquisitions and talent attraction, these technology giants seem guaranteed to keep on winning.