Traditional banking hasn’t worked well in some areas of the world, including sub-Saharan Africa, where a large percentage of the population has been financially underserviced. New, innovative fintechs have been only too happy and qualified to fill the void. By expanding access, fintechs are promoting economic and social growth in the region, especially in high-tech hubs South Africa and Kenya, which are setting an example for others to follow.
Banks once were the movers and shakers of the financial world, but in the aftermath of the global financial crisis, mired in new regulations, many have lagged behind rising fintechs in technological innovation. What fintechs have discovered is artificial intelligence’s considerable contribution to meeting customer needs and maximizing operational efficiencies. Now that the regulatory climate has eased, banks are catching up and employing carefully implemented AI to help them achieve their customer-centric goals.
A recent report by Access to Cash has suggested that cash transactions could fall to just 10% of all payments within the next 15 years. This is not very surprising given thatlast year, debit cards officially overtook notes and coins as the UK’s most popular form of payment.
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.
It’s now pretty much universally acknowledged that the UK retail banking market is being disrupted by new, digital-first competitors – the so-called ‘direct’ banks. The narrative is that these agile upstarts are stealing customers away from incumbents by offering compelling new services and unprecedented levels of convenience.
The hold traditional banking once exerted over consumer finances has seriously eroded in the Digital Age, with fintech presenting a formidable challenge to banking’s sovereignty. Customers are shrugging off any loyalty they may have had to their main banks and are opting for the providers with the most convenient, efficient, secure and, above all, speedy financial solutions. Can banks survive in the fintech world, and if so, how?
Societies face a stark reality: their 65-plus members are claiming a rapidly increasing population share. Japan may be the guinea pig in this predicament; in the Land of the Rising Sun, the death rate already eclipses the birthrate. How the innovation-savvy Japanese respond will be a model for other countries that will follow in their footsteps. Will Japan’s empathy for its elders be duplicated elsewhere, especially in financial industries?
Cloud-native technology is revolutionizing not only software development but also banking operations, as banks that have already begun employing it are finding out. Is it hype or the inevitable future of banking? Cloud native’s benefits that include fast innovation, low cost, low risk, scalability and potential for profitable niches speak for themselves, and banks would do well to listen!
With the new year comes new priorities for business and technology leaders, new trends to look out for and new best practices and ideas. While it can be hard to sift through all of the information to understand what it is that will have the biggest, most positive impact on your financial organization
Mainframe computers have enabled banks to manage huge amounts of financial data for nearly 70 years, but these legacy systems are today proving to be hindrances to progress. Lean fintechs are taking full advantage of today’s ground-breaking, agile technology, while established banks are struggling to transform their bedrock digital infrastructure for the new world. How are banks migrating to cutting-edge systems that will maintain them on their industry’s frontlines?