International Finance
Ideas Magazine March-April 2019

Why 2019 might be the year for financial institutions to focus on what matters

Why 2019 might be the year for financial institutions to focus on what matters
According to a Capgemini report, companies pacing slowly in the financial sector will be challenged up to losing 35% of the total market share to their digital peers.

Financial institutions know that they need to invest in new technology and new ways of connecting with their customers. In fact, according to a Capgemini report, digital laggards in the financial services industry are in danger of losing up to 35% of their total market share to digital pure-plays. So from upgrading ATMs to giving them iPad-esq interfaces to making mortgage applications possible from a smartphone, we have seen a mass of new innovations from the traditional banks this year.

But this hasn’t been an easy process. While some financial institutions have been slow to adapt, others have attempted such a myriad of new innovations to the point that they’ve been at the risk of trying to achieve too much change at once.

This year we might witness a new approach. It will be the year for financial institutions to hone their technological capabilities in the right direction. Many of them will pick one key area to focus on, and they’ll do it really well. Here’s a look at why and what else is in store for the industry in 2019.

Moving on from pilot schemes.

From Natwest’s Cora to the National Bank of Canada’s experiments with blockchain, we have already seen banks implement many different forms of new technology in pilot schemes. In 2019 however, the onus will be put on getting a return on investment, which is likely to involve taking a focused approach to new innovations.

Honing home-grown talent

MATT PHILLIPS VP, Head of Financial Services, Dieboid Nixdort UK/I

With the political climate having the potential to impact the free movement of tech skills across borders, some businesses are predicted to go into ‘supply shock’. They must therefore nurture and develop their own talented employees.

Getting the pace right

 While millennial and Gen Z customers might leap towards the latest technology, while some baby boomers would rather crawl before they can walk. One of the key challenges for banks in 2019 will therefore be to develop their technology strategy at a rate that suits multiple demographics within their customer base.

The end of gimmicks

 We’ve all got excited by next generation apps and banking assistant robots that have been announced this year. In 2019 banks will concentrate on making their new innovations count from a customer journey point of view.

Open banking opportunities

PSD2 was set to be the game-changer for 2018, with many in the industry seeing the legislation as a threat, as well as an opportunity. In 2019 we can expect the legislation to start to impact consumer trends.

New branch formats

 Branch formats have been refined over the last few years, with many banks adjusting their portfolios to include flagship stores in high footfall areas, and a consolidated number of smaller stores, supported by transaction-heavy pop up or mobile branches in convenient locations. It has been a time of change and 2019 will see these new branch portfolios mature and get results.

Comfortable consumers

In 2014, 19% of consumers had biometrics on their smartphones. By 2018, this had risen to 7-in-10. The consumerisation of technology like this makes it much more comfortable for banking customers to use, so we can expect to see a growing amount of technology such as biometrics in banking.

Adding value with analytics

 As a globe we are creating a mind-blowing 2.5 quintillion bytes of data each day. For banks, the challenge is to put data to work. In 2019, we will start to see banks use data more intelligent across different platforms to improve the customer journey, personalise the experience and predict how the customer will need to interact next.  

‘As a service’ on the rise

 The ‘as-a-service’ economy is well underway in the UK, with analysts expecting the XaaS market to grow 38% by 2020. Banks looking to make a better use of their internal teams in a competitive environment can be expected to jump on this trend to boost their internal agility.

What's New

ROSHN: Shaping Saudi’s Urban Vision


Regulation around AI is needed: iQmetrix Senior VP of Revenue Jason Raymer

IFM Correspondent

The battle against SIM card theft

IFM Correspondent

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.