To a group of senior executives from the banking sector, this question was posed to get a realistic feedback. The focus of the question was not what to expect from banks 30 or 40 years on, but even just after 10 short years!
As was expected, different viewpoints came out with different rationalization, but a common thread was found among all of them, leading to somewhat of a clear picture.
Whilst the off-the-cuff remarks on what to expect in automation was a common platform, self-service solutions would gain the upper hand was noted as most significant change over the decade. Added to this, companies like NCR would cash-in on the opportunity to offer machines and software solutions that’ll take the banks into the future.
For instance, in self-help, self-driving cars and self-flying planes are very much on the horizon. Already, vacuum cleaners that can be programmed to clean a room, burger-flipping robots in California, automobile vending machines, and similar advances are a reality. Similar to the convenience-change that ATMs have done to our life, several daily utilities and essentials would arrive at your doorstep – an continue to simplify human lives.
Artificial Intelligence-powered Personal Assistants are already a feature within the smart phones. personal assistants are already present on most mobile phones. Facebook founder, Mark Zuckerberg is at the forefront of that push and is reportedly trying to build his own version of Iron Man’s Jarvis AI to run his home!
Everyday household white goods are becoming smart, communicating with each other, collecting data that is useful for consumers and businesses in everyday life. We see this expanding, and developing; beacon technology is already in play with some retailers, and drone deliveries are no longer just pure fiction. Indeed, deliveries with an hour of order are a stated aim of some retailers and drones may just be the way to get them there.
The way people bank can and will change in the future. Going on current trends we would expect ATM installations to be at around 5 million across the globe, by 2028. There will possibly be wider adoption of cloud infrastructures, and greater mobile delivery of banking services via video technology. Consumers will still value human interaction, with “micro-branches” increasing in more diverse locations. If today, the consumer has to actively request an overdraft increase, for example, or go through a process of application and approval to get a credit card in future, this could all change thanks to ‘big data’ technology. A combination of browsing history and credit scores with beacon technology could allow banks and retailers to deliver personalized, relevant product offers in real time.
The bank may partner with the retailer, as already happens in some markets, to offer a discount on the product if it is purchased there and then. The ability to use the data held on customers proactively, rather than reacting with a long process, can greatly enhance the consumer experience. Providing financial products at times consumers have the need for them would have positive effects on both profitability and customer satisfaction.
The future is full of unknowns, and while nobody can be sure of what it will hold, the next 10 years will bring about even greater efficiencies for both businesses and consumers.
The need for convenience, paired with consumers’ desire for a commonality of the ways in which they and businesses interact with each other, will mean that technology will become ever more pervasive in our daily lives, and with that, change the way we bank.
(Adapted from a blog originally published on banking.com)