Tuesday 4 September 2018

Competitive Technology-Driven Influencers for 2020


Technological advances in the financial services industry have real world implications. For a long time, new market entrants have found it difficult to enter into the financial services sector. FinTech disruptors with innovative technology or process have been foraging into profitable elements of the financial services value chain. Many banks will find a quarter of their business, or more, to be at risk from FinTech companies.

PricewaterhouseCoopers (“PwC”) notes in their report on FinTech that global investments in FinTech has more than tripled (in 2014) reaching above USD12 billion. Banks worldwide spent only USD215 billion on IT in 2014.
Blockchain developments will change the financial landscape. The “public ledger” will become an integral part of banks’ technology and operational infrastructure. Digital wave will move from payments to capital markets and commercial banking.
Advances in robotics and AI will address key pressure points, reduce costs and mitigate risks. This is beyond replacing the bank teller.
Knowing customer needs or customer intelligence will be the single most important predictor of revenue growth. Focus groups and surveys will help identify what users do and what they want. Around the world, the middle class is projected to grow sharply. Asia’s middle class is now larger than Europe’s. By 2020, the shift will be discernible. Over next 30 years, 1.8 billion people will move into cities. That will happen in Asia and Africa, creating new opportunities for players in the financial sector.
In the immediate, embracing disruption and staying adaptable may ensure survival of participants in the financial services ecosystem.
Reference
Financial services technology 2020 and beyond: Embracing disruption, PwC (Global).





No comments:

Post a Comment