Technological change heavily impacts all industries, but especially the financial industry. While some industries may still succeed without adapting to fast-paced technological change, the financial industry will not. To stay ahead of the game, financial institutions must stay one step ahead of the game and have a strong plan for embracing technological disruptions by adapting their business models.
In a recent PWC report, financial leaders discuss the top competitive technology influencers for 2020. This article will present a quick overview of the most salient of the disruptors to help you prepare, transition, and, ultimately, succeed in an increasingly changing business world.
Customer intelligence will be the most important predictor of revenue growth and profitability
A top prediction of the report is telling the same story as every other industry: customers are in the driver’s seat. If you want your business to succeed, it’s imperative to invest in tools that help you get in the heads of your customers. Your financial institution needs to gather data on what your customers like, what they don’t like, what purchasing choices they are making, and more.
If you haven’t already, invest in a powerful customer intelligence analytics tool that brings customer data to the forefront of your institution.
FinTech will drive the new business model
FinTech disruptors are fast-moving companies that focus on revolutionizing a technology or process in anything from mobile to insurance. These disruptors are quickly gaining speed in the financial industry and are attacking some of the most profitable parts of the financial services value chain.
In a recent PwC Global FinTech Survey, respondents reported a quarter of their business could be at risk of being lost to FinTech companies within 5 years. To stay in the game, financial services must embrace and invest in FinTech.
Blockchain will become an integral part of the financial industry
Blockchain technology isn’t solely for cryptocurrencies. Blockchain is moving from a retail focus to institutional use. While many blockchain technology companies are bound to fail, some will find solutions for financial institutions for smoother, safer transactions and to verify identity. This process will prove to be more efficient, secure, traceable, and transparent. Not to mention, it can cut the need for banks to act as an intermediary for transactions.
Advances in robotics and AI will increase
We are not to far off when AI and robots will be able to perform more complex tasks. It’s safe to say that AI will be used to address key pressure points, decrease costs, and reduce risks. In the future, AI and bots could not only replace the bank teller but automate more complex tasks. They could be capable of navigation, logical reasoning, identification of patterns, language processing, social intelligence, and more.
Fast-paced changes in technology are disrupting the financial industry, and the only way to stay ahead is to embrace change. For more information on other top disruption predictions for financial services, refer to the original PwC report.