The banking industry is at a tipping point, with mobile banking becoming the most defining trend in recent times. The galloping rate at which smartphone usage is increasing is an indication for the global banking industry to upgrade their services and networks. Banks are partnering with trailblazers in the technology sector to offer new payment methods to customers so as to help them drop the physical wallet.
However, the banking industry is faced with a deluge of regulatory challenges, especially in the wake of security threats as banking switches to the digital realm. At the same time, increased trade flows, especially in growth markets, have created new opportunities for the global banking industry, and will continue to do so over the next few years. Demographic changes are necessitating the creation of a new consumer base. This consequently creates the need to provide banking services that are in keeping with younger customers’ preferences.
Millennials, with their unique banking needs, are expected to further impel the modernization of banking services. Banks are already feeling the pressure to remodel outdated infrastructure, and this pressure will mount in the next few years.
However, at the center of all of these changes lies the need to improve profitability. From advisory services to retail and corporate banking, banks are deploying leaner operational models. Closure of physical branches and fortification of digital banking services is a step toward this.