The retail banking sector is set to undergo a drastic change by 2020 as banks focus on technology, innovation and customers to attain success, according to a survey by PricewaterhouseCoopers (PwC).
The report titled ‘Retail Banking 2020 Evolution or Revolution’ was based on the online survey conducted in 2013 through 560 interviews with senior banking executives and 144 executives.
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PwC received 19 completed surveys from South African banks including African Bank, Barclays Africa, Capitec Bank, FirstRand, Investec, Nedbank and Standard Bank.
The report noted that around 1.8 billion people are expected to move into cities in the next six years and need to open bank accounts, giving retail banks the opportunity to increase their consumer base.
Consumers, however, need to change the way they do banking as the use of tablets, iPads and other gadgets is increasing continuously.
PWC Africa banking and capital markets head, Johannes Grosskopf, said he do not think any change becomes a reality overnight, so customers will gradually become increasingly aware of what they need to do.
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By GlobalDataPwC South Africa banking and capital markets partner and retail banking specialist, Thomas Magill, said the traditional bank would still exist, but would need to adapt to changing conditions to stay competitive.
"The traditional banks have the trust of the customer, the customer base, they have the technology and … the expertise. But what’s important is if they stand still, they will be left behind and become less competitive," Magill added.
