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What is the Future of Banking? 16 Experts Share Their Insights

  • 28 June 2019
  • Sam Mire

Our banking system is changing more than many realize. The move towards a cashless society has been set in motion, while the international financial marketplace is as active as ever. The future of banking will not look much like the present, that's for certain.

These industry insiders have seen the early signs of potentially massive change, and they told us, in their best estimations, what the future of banking will look like:

1. Per Christian Goller, CEO at Aprila Bank 

“The future of banking for SMEs (or corporates) is in the re-bundling of banking services. We do not believe in the “unbundling of the banks” from a corporate bank perspective. The daily routines of a CEO are already complex enough, without adding lots of apps leading to distributed information for the person in charge of the business. The banks will certainly not disappear as their balance sheets cannot be substituted by fintechs. However, we strongly believe in a re-bundling of bank products, meaning that financial offerings should and will be integrated into new environments where they are a more natural fit for the customer. For Aprila Bank, that means that we have integrated our financing offerings inside cloud accounting systems, where the SME already is present and have an overview of their financial needs. We have brought the bank to the customer, instead of the customer to the bank, so to speak. Re-bundling of bank offerings into natural environments where the customer already is, is what we believe in.”


2. Chris Tremont, Executive VP of Virtual Banking at Radius Bank

“Banking as a service (BaaS) is the process of digitally connecting fintech companies to banks via the bank's open application program interfaces (APIs). With the rise of fintech, the banking industry is changing drastically. Instead of competing, a bank's open APIs enable them to integrate third-party fintech services, which customers can access through the banks' digital channels, to offer a white label account product or a co-branded bank account. Open APIs also increase the creativity of, and speed to market of, banking products and services. This partnership generates new customers and revenue streams for both the bank and the fintech and improves the overall user experience for the customer.”


3. Shai Stern, Co-Chairman and CEO of CheckAlt

“The future of banking is about doubling down on what banks do best. Banks will refocus on providing banking services in the way consumers and businesses expect to be served, through all channels including ATM, branch, mobile, and online banking. They are able to this by offloading operational and technological services to financial technology vendors with expertise in areas like fraud prevention and mobile payments. As the market continues to evolve, banks will find more efficient and cost-effective outsourcing opportunities. Vendors must meet banking demands for developing, implementing, and enhancing innovative banking software.”


4. Stacy Caprio, founder of Fiscal Nerd

Stacy Caprio“The future of banking is moving toward online, phone and app contained. The physical presence of banks still help boost their brand and assist customers, but more and more banks are moving toward the online world. Even currencies are becoming more online including the new cryptocurrencies, as opposed to physical cash and gold that used to be the common bartering methods.”


5. Uri Abramson, Founder of Overdraft Apps

Uri Abramson“The explosive growth of artificial intelligence will make many banking tasks of today obsolete. Providing financial advice doesn't require human interaction anymore. Banking relationships go way beyond making purely financial decisions. The future is knowing your customer; establishing personal relationships that go above and beyond the checkbook or investment routines; connecting her with other individuals and organizations that can promote her personal, as well as financial, growth in other words, deep and maybe even extreme personalisation, something that can't be achieve by an app or artificial intelligence.”


6. Wes Garner, President of TDECU Wealth Advisors

“Changes in banking are long overdue. A significant gap exists between the value consumers expect from their financial institution and their perception of the value they are currently receiving. The rewired consumer expects more and doesn’t understand why banks are often so difficult to deal with when compared to other retail service businesses.”

 


7. Sanat Rao, Chief Business Officer & Global Head for Finacle at Infosys Limited

Sanat Rao“In this rapidly changing universe, winners will be those who implement a truly digital strategy to take advantage of APIs for customer-centric innovation, new open banking realities, and transformational industry trends will be crucial for success.”

 

 


8. Patricia Russell, CFP, founder of FinanceMarvel

“The future of banking will be faster, smarter, more accessible and with more choices to customers than ever before thanks to proper aggregation and wise implementation of artificial intelligence, Big Data, blockchain technology and other incredible new advancements which have started to surface into the mainstream as of 2019. Gone forever will be the days of 3-day transactions and settling time, multi-day bank approval waiting times and a whole host of other issues currently plaguing the financial world.”


9. Jordan Friedman, CEO of Zodaka

Jordan Friedman“The future of banking is digital. Banking is inherently a perfect industry to
work with technology. For the first time ever small banks can have access to the same or better tools as bigger institutions, and they can also have the same reach through partnerships and creative products instead of opening more branches. I think we will continue to see the proliferation of E-banks offering incredible deals and service rates. Much of the retail banking market is there for the taking as people become more disillusioned with the majors and small banks continue to innovate and compete nationally.”


10. Mads Hennelund, Advisor to Nextwork.as

Mads Hennelund“I see a lot of consolidation going on between the big banks in order for them to survive a climate with low and even negative interest rates,  difficulties with increasing revenues and more compliance and IT demands.

These big players are building sublime digital customer experiences across online and mobile banking and the banks integrate with other best-in-classbanking solutions to be able to provide the best niche services on mortgage, investing, budgeting, business analytics, etc. But there is also a segment that focuses on their physical branches and intimate customer relationships through a de-centralized branch network.”

 


11. Andrew Daniels, Managing Director for Degree 53

Andrew Daniels“The banking industry has been lagging behind the technological advancement from a customer's perspective for a while. This has allowed disruptors to jump ahead of the established banks and launch alternative and specific services to address customers' needs, such as offering mobile banking services through intuitive apps, quicker money transfers, simpler loan applications, budgeting and even easily accessible customer services. Some of the bigger names are Monzo, TransferWise, Atom Bank, Revolut and First Direct who have won over customers thanks to offering user-friendly digital products. So traditional banks have a lot of catching up to do to match the user experience and services to the new players. We've already seen good efforts from banks like Barclays and NatWest in the UK, but others are still behind. “


12. Anthony Macciola, Chief Innovation Officer at ABBYY

Anthony Macciola“While banks and lenders have made great achievements in offering products and services that make life easier for customers, such as online banking, remote check deposit, and mortgage lending apps, technology is moving at such a neck-breaking speed that they are now integrating AI-enabling technologies for applications ranging from financial spreading to predicting fraudulent activity to conversational AI with chatbots – applications that also make life easier for staff.”


13. James D'Arezzo, CEO of Condusiv

James D'Arezzo“Banks have a multitude of applications for blockchain that could revolutionize the industry. Accenture has estimated that the largest investment banks could save $8 billion to $12 billion per year by using blockchain to improve the efficiency of clearing and settlement. Central banks are exploring the potential for shifting parts of their payments systems to blockchain. Dozens of startups are working on building blockchain systems for customer identification. Credit Suisse and 18 other financial institutions have formed a consortium to start replacing the syndicated loan system with blockchain.”


14. Mike Kerins, CFA, FRM, Founder and CEO of RobustWealth

Mike Kerins“While banks have been establishing deep, long-lasting relationships with a wide range of clients, many institutions have to share those relationships or turn away business because they struggle to provide their full suite of services to smaller accounts. In the future, banks will leverage technology to scale services traditionally reserved for high-net-worth individuals to help others save and maintain healthy financial lives.”


15. Travis B. Bailey, Regional Executive Senior Vice President at First Bank

“There is a lot of public discussion suggesting that brick and mortar banking is on its way out, and the recent emergence of fintech products has added fuel to this dialogue. However, it's not time to declare the death of brick and mortar banking. In fact, I argue that physical branches will always play a major role in the banking landscape. Even our most digitally savvy customers appreciate personal relationships with their bankers and the ability to handle certain transactions in a secure branch. In my opinion, the future of banking will be largely dictated by how well banks balance this evolution. Those that find the right mix of convenient digital options and the personal service found in branches will succeed for years to come.”


16. David Bakke, Writer at Money Crashers

“One item that seems to have a place in the future of banking is that online banks will continue to emerge and thrive and local branch banks will continue to diminish. However, it's unlikely that online banks will ever entirely replace local branches unless for some unforeseen reason we go to a completely non-cash society, which is rather unlikely. Along those same lines, being able to pay for things with your phone will continue to push out the need for a debit card. Although again, that's not to say the debit card will become extinct any time soon.”

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About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.

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