Expect to see the uptake of new fintech services and payments offerings hit mass-market acceptance in 2018 as customers look for greater convenience and services tailored to their needs.
We will see new, innovative services being launched to market capitalising on the potential of new technology such as AI and wearables – for example allowing customers to make payments while leaving their cash and cards at home.
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I expect banks to broaden the range of services they offer through mobile and online channels, and incorporate sophisticated chatbot services that can deliver fast and efficient responses to common enquiries.
Younger generations are increasingly comfortable interacting in this way, though it will remain important to give customers of all ages the opportunity to escalate more complex issues or discussions to a human operator – offering the opportunity to switch to a video call or to book an appointment at the branch.
While banks will continue to reduce branches we expect them to invest more in those that remain – making them a brand hub with automated services on offer that provide a consistent experience to consumers, with staff taking on the role of advisors. Such an approach will help banks deliver an improved overall experience both online and via the branch network.
AI will allow banks to be more targeted in their offerings to customers
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By GlobalDataIn 2018 banks will need to be much more proactive in embracing the potential of artificial intelligence to deliver greater value and insight to customers. Now and over the next two to three years the focus has to be on using AI to turn the data that banks hold into recommendations and offers that are delivered to the customer at just the right time.
The combination of transaction data, personal data, mobile location and social media data can help banks respond to and even pre-empt customer requirements based on actual needs. Of course, to ensure a high level of trust with customers, and ensure full compliance with the upcoming requirements of GDPR, banks need to ensure they gain permission from customers to use their data to deliver a better and more personalised service. Machine learning will also bring automation and better operational efficiency, helping to better service the customer.
Greater collaboration between banks and fintechs
The implementation of PSD2 and the move to open banking will drive greater collaboration between banks and Fintechs in 2018. There’s a growing recognition that banks can deliver innovative products and services to market faster and support customers more effectively in partnership with other third-party specialists.
They no longer need to develop everything in house, but can take advantage of a platform-as-a-service and Open API approach to collaborate, develop and deploy services securely via the cloud. The implementation of PSD2 and the move to open banking will increase competitiveness, but create new business opportunities by enabling collaboration on a larger scale.
Sadiq Javeri is Global Head of Planning and Enablement for Retail Banking at Finastra
