There are many elements of life that have been profoundly affected by the coronavirus pandemic. Some we will learn to live with, others will revert to how they were, and some we will embrace for the better. What’s certain is that we must adapt our stance in a world that is constantly changing.
Banks have built historic reputations on being steady and solid, traditionally making incremental improvements to operations based on an understanding of change as something that is occasionally necessary, but preferably avoided. Yet in a market distinguished by uncertainty, the only way to be ready for the future is to invest in change itself.
Banks are currently facing a serious generational divide, and it’s an issue that requires urgent action, lest banks lose out on the customer of the future. For most adults today, the likelihood is that they opened their first bank account in a branch, accompanied by their parents. However, with the acceleration of digital banking, this assurance has dissolved.
Technology has soared during the COVID crisis, but the outlook for fintech funding has been mixed, as investors prioritized surety, especially during the pandemic’s early days. Although fintech funding experienced a pronounced drop during the first half of 2020 across VC, PE and M&A, it has recovered impressively, auguring well for 2021.
New technologies have infiltrated every corner of the world during the digital age, but four stand out as frontrunners. The DARQ forces of distributed ledger technology, artificial intelligence, extended reality and quantum computing, working independently and together, are ready to guide businesses and society into a bold new frontier.
By necessity, COVID has upped the pace of technological change in the financial services industry. However, there is a longer-term goal to revolutionise the way individuals and businesses manage money day-to-day. As digitisation booms, every player in this sector is determined to innovate.
Financial crime has thrived during the pandemic. It seems obvious that the increase in digital banking, as people were forced to stay inside for months on end, would correlate with a sharp rise in money laundering (ML) and other nefarious activity, as criminals exploited new attack surfaces and the global uncertainty caused by the pandemic.
Data is a valuable commodity in today’s economy, with most industries depending on it. Commodities are traded, but sharing data between relevant parties is not easy because of numerous safeguards. Only a coordinated effort from private and public-sector stakeholders will ensure data flows to where it is needed securely but efficiently.
For years, the trading floor was abuzz with frenzied human beings intent on capitalizing on fast-breaking opportunities and avoiding potential catastrophes. But technology has altered the scene, with the traditional open-outcry trading floor being increasingly replaced by innovations such as electronic trading, automation and digitisation.
Some people and business owners still do not have bank accounts, most in rural communities of developing nations. But the situation is improving as technology opens doors to financial inclusion for the previously excluded. In what specific ways is increased banking access being achieved, with governments working alongside financial firms?