9 Ways Banks will Change in Next Few Years

Fintech - Financial Technology has greatly disrupted the way that banks and financial institutions operate today. Think about it, today its hard to imagine not using Paypal.

But just like Paypal totally disrupted the financial system, we have a whole suite of changes that are just around the corner.

I turned to nine financial experts to predict the ways that banks will be changing over the next few years.

Here are the answers they shared.

Real-time payments

Real-time payments will radically improve our customer’s ability to manage their cashflow and account balances. Today, there is a delay (sometimes up to 3 business days) between making a payment and when it shows up in your account balance. This means customers managing tight budgets jump through a series of mental hoops to reconcile all the places they’ve spent money and if those providers are reflected yet in their balance. The result is a significantly tougher time avoiding expensive overdraft and returned payment fees. - CEO Jeff Zhou of Fig Loans

Financial products with anything less than a five star rating will go bust

Today’s users expect simplicity and ease of use, but traditional financial institutions are notoriously bad at delivering products that fit this brief. Fintech is nurturing a new generation of innovators who are focused on setting a higher standard for UX/UI when it comes to financial experiences. That’s why we’re going to see fintech companies creating great user experiences for their customers by prioritizing fast and frictionless onboarding and making finding financial services and products fun and easy. - Phil Barrar, Founder and CEO of Mylo

Artificial intelligence

AI: Using artificial intelligence to help consumers -AI will be used to help find the best payment schedules, offer consumers new products, improve existing products, increase operational efficiency of business processes and pursue new discoveries that offer innovative business opportunities. - Matthew Cooper CEO of EarnUp

Industry 4.0 — I strongly believe that there is a paradigm shift in the way IT systems will be built and run in the future. And this paradigm shift is true for all sectors. In the new world of „digital business“, the only way our clients can keep up with the required speed is to adjust their business by using digital platforms. Knowledge is the new ‘gold’, and as such companies should not only bring the knowledge back in house they should also look to engage new partners with software development knowledge as they will need more than simple solution customization. This is one of the main reasons why I see a great window of opportunity to enter the industrial sector by using this paradigm shift. - Marika Lulay, the CEO of global technology consultancy GFT

Technology is a great Equalizer

Technology is the great equalizer for small firms competing with the behemoths in their market. In the coming years, startups and other scrappy organizations will continue to increase market share by playing to their strengths and leveraging partnerships with each other to fill gaps in their proficiencies. This is perhaps most evident in the banking sector, where we’re seeing community banks automate operational processes and implement artificial intelligence to meet customer service needs. These tactics allow organizations like ours to stay nimble as they work to grow their core businesses. - Leslie Smith, managing director for Commercial Direct

Deeper and better data capture

A more standardized client on boarding process across the whole firm which includes deeper and better data capture about the client so that there will be a more pinpointed planning process. 

Blockchain

Blockchain will play a bigger role in B2B transactions. I believe that it won’t be the P2P or B2C transactions that will be seeing the first major implementation of blockchains. It will be B2B transactions between trading partners and bank networks that will implement it. - Nicolas Beique, CEO and Founder of Helcim

Published: 30 July 2018

Author: Breana Patel

Source: https://www.finextra.com


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