Customer needs, new providers to drive change in banking

THE future of banking is a hotly debated topic. Views on where banking is going are as diverse as the evolving customer needs banks are now seeking to serve. While there are different opinions on the pace of change, the one point of consensus seems to be that continued change is a certainty.

Key traditional players in the banking and financial services sector are increasingly being challenged by customers and new providers to innovate. However, the changes driven by the need to innovate may not be linear.

Many established players are urgently modernising their products, portfolio options, systems, processes and customer touch points - with the fastest movers achieving some competitive disruption. In parallel, new entrants into banking and payment services, unencumbered by legacy systems, are shifting the goal posts. Institutions that are slow to move may risk significant dislocation as the entire environment around them changes.