These influences will have a major impact onwhat banking will look like in the future.
Lets take a deeper look into whats driving or challenging this buoyant sector.
Big tech is moving into finance… but will we see big tech banks?
The short answer is maybe, but unlikely.
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Besides,big tech trails behind financial services on consumer trust.
The same holds true for all types of cloud services big techs provide to banks.
Instead, they may opt to become one of the platforms through which banking services are provided.
And, in some cases, its worked.
Whatsapp, Facebook, email).
As with every facet of banking, trust remains central to the service.
Maintaining communication and transparency with customers will also help build trust and loyalty in your bank.
In turn, this is speeding up the rate of new tech adoption.
Before the pandemic, nearly half of financial executives said that scaling down digital costs was their top priority.
One key investment isvideo banking, which is now going mainstream.
Another strategic move is for banks topartner with fintechs.
Combining the two entities helps each one to overcome these barriers.
Will this lead to a future of completely digital branchless banks?
According to Dennis de Reus, Head of AI at ABN AMRO, they already exist.
Currently they are focused on retail or small companies, but dont have a broad range of products.
However, in 10 years, I expect these players to tap into banking-as-a-service products to expand their offering.
New security threats and solutions are on the rise
Ransomware issweeping the world at record pace.
So, what can banks and fintechs do?
Preparing for a ransomware attack is the best form of defense, according to cybersecurity experts.
An important aspect of cybersecurity is awareness and knowledge sharing.
This means they can leverage their knowledge on real estate energy efficiency to help their customers in their initiatives.
Will crypto ever replace fiat currency?
Meanwhile, institutional investors are recognizing the investment potential of established cryptocurrencies such as Bitcoin or Ether.
He believes that:
If central banks release digital currencies that perspective might change.
But it would be very different from the traditional cryptocurrencies of today e.g.
Bitcoin because many blockchain solutions feel like re-inventing many aspects of modern banking.
Currently, a lot of market inefficiencies occur due to lack of technological innovation.
As with all fast-growing sectors, the trends underpinning fintech pose both opportunities as well as challenges.
She was previously an Innovation Strategist at Quirk London.
Aside from writing for TNW, she also blogs on the Huffington Post UK.
