The fast pace of technological innovation combined with changing customer behavior is forcing a rewrite of the financial industry. The emergence of this incredible technological initiative and disruption, while initially seen as a threat to some of the traditional financial services firms, is starting to be seen as a benefit to the industry.
A 21st-century rewrite of the financial system is kicking in as venerable institutions and high-tech startups create new ways for people to hold and exchange “value.”
Learn more from KPMG about recognizing and embracing disruption in financial services.
Traditional banking products, services and processes are giving way to technology that’s changing the relationship between bank and customer.
Just within the next decade, digital currencies will increasingly replace physical money, providing an opportunity for institutions to reduce risk, transaction time and cost.
In the back office, blockchain technology has digitized and automated the bank ledger, creating a more secure, more auditable environment. Blockchain and other improved systems will eventually replace aging bank technology built to replicate yesterday’s financial processes, helping to drive efficiencies.
Meanwhile, cash and credit cards will fade away, while electronic payment becomes smarter and more interactive. Mobile banking is adapting to younger consumers who are used to instantaneous feedback and seek access to their accounts whenever and wherever they want.
Learn how to capitalize on disruption and become the digital bank of the future.
The expectations of a new generation
Indeed, when banks emerged from the financial crisis, they woke up to a new kind of customer. The march of technological innovation shifted the way customers want to interact with all businesses, including banks. For instance, if customers shop, search, schedule and more on their smartphones, surely they want to pay with and bank on their smartphones, too.
The more thoughtful large institutions are incorporating innovative thinking to serve both retail and commercial markets, resulting in a customer experience that is better than ever.
Courting the bank customer of today
Adoption of new technologies by large banks can’t happen soon enough. The majority of financial technology innovation to date has come from scrappy upstarts who are inspiring industry change, but who also threaten to put a wedge in the bank-customer relationship by beating large institutions to the punch.
The winners of this fight understand that customers have different expectations than they used to, and will rise to meet their demands. This is a great catalyst to move organizations toward business models that are much more relevant to the customer of today.
Hear more from Brian Stephens about how institutions and startups together are changing the industry in our video introducing “The Great Rewrite” of financial services.
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