New technology and changing customer behavior are transforming the financial industry.
Traditional banking products, services and processes are giving way to technology that’s changing the relationship between bank and customer.
Just within the next decade, digital currencies will increasingly replace physical money, providing an opportunity for institutions to reduce risk, transaction time and cost.
In the back office, blockchain technology has digitized and automated the bank ledger, creating a more secure, more auditable environment. Blockchain and other improved systems will eventually replace aging bank technology built to replicate yesterday’s financial processes, helping to drive efficiencies.
Meanwhile, cash and credit cards will fade away, while electronic payment becomes smarter and more interactive. Mobile banking is adapting to younger consumers who are used to instantaneous feedback and seek access to their accounts whenever and wherever they want.
Indeed, when banks emerged from the financial crisis, they woke up to a new kind of customer. The march of technological innovation shifted the way customers want to interact with all businesses, including banks. For instance, if customers shop, search, schedule and more on their smartphones, surely they want to pay with and bank on their smartphones, too.
The more thoughtful large institutions are incorporating innovative thinking to serve both retail and commercial markets, resulting in a customer experience that is better than ever.
Adoption of new technologies by large banks can’t happen soon enough. The majority of financial technology innovation to date has come from scrappy upstarts who are inspiring industry change, but who also threaten to put a wedge in the bank-customer relationship by beating large institutions to the punch.
The winners of this fight understand that customers have different expectations than they used to, and will rise to meet their demands. According to KPMG’s Stephens, “This is a great catalyst to move organizations toward business models that are much more relevant to the customer of today.”
For more about the great rewrite taking place across all industries and institutions, visit https://www.forbes.com/kpmg/the-great-rewrite/#/