The 2020s are off to a disruptive start. The pandemic prompted an unprecedented wave of digital transformation initiatives within organisations across the world. The need for innovation and digitalisation strategies – a point of debate even before the pandemic – was more apparent in a world gearing up for a new normal and changing customer expectations.
Financial services organisations that met these expectations by developing their digital capabilities thrived, while many others still struggle. However, this raises a new question – what could shape the next big shift in the financial services industry? Here are a few factors that may impact the next decade of banking.
Keeping cash at a distance
The transition towards a cashless society has been an ongoing phenomenon for decades. The pandemic has been a catalyst for this movement, with more customers relying on mobile payments and banking solutions. However, this reliance on digital banking services promises to outlast the COVID-19 crisis, which is why traditional banking players and emerging fintech services are overhauling their current digital services or developing new applications to meet evolving customer needs. The coming years look promising for solutions built on a foundation of artificial intelligence, cloud-based platforms and data and analytics expertise.
Subscribing to a new model
As more apps with smooth onboarding processes, intuitive interfaces and fewer fees emerge, the industry would be wise to remember that the shift towards customer-centricity isn’t all about technology, or transactions. It’s about the ultimate value that customers gain out of their experience. And since customer needs tend to become more nuanced in times of greater uncertainty, it opens up interesting opportunities to broaden and strengthen customer relationships.
A subscription model will allow them to offer tailored financial concierge services – usually reserved for high net worth individuals – to more consumers. If the rise of fintech start-ups and digital-only banks is any indication, consumers are willing to pay to access additional services that meet their needs and offer a more holistic experience.