Financial services will be driven by a confluence of emerging technologies, changing consumer demands, increased competition from non-traditional banking players, and renewed regulation, according to Accenture's managing director of financial services.
Traditional banks are being compelled to evolve their business models and deliver consistent and fulfilling customer experiences across all customer touchpoints in both physical and digital spaces, Paul Ng, Accenture's managing director, financial services, told finews.asia.
«We see a huge opportunity for financial service providers who adopt an agile and proactive approach to innovation and are able to reimagine products and services that add value to customers’ lives, and deliver on what they truly need,» Ng said about the stiffer competition across Asia’s financial landscape and ecosystem that has come with the introduction of digital banking.
Major Trends
Ng also noted that emerging technologies such as distributed ledger technology, artificial intelligence, extended reality and quantum computing, will act as catalysts for change by allowing banks to expand on their digital capabilities to build highly customized, in-the-moment experiences.
At the same time, the use of data, open APIs, and ecosystems, will allow financial services firms to create new business models and deliver «invisible banking,» or integrated offering that cater to core customer needs.
They will also be able to create new revenue streams by providing value-added digital services within their own boundaries, and in partnership with other players within the ecosystem, Ng said.
Trust is Key
Ng noted that a vital challenge for both incumbents and digital challengers is gaining consumer trust. «An average of 5 percent of traditional banks’ total retail revenue is at risk because there is a lack of trust among customers that banks will look after their long-term financial well-being.»
«Covid-19 has made the need for a trust-based relationship more urgent. There has never been a better time for banks to relook their traditional approaches and embrace empathy, attentiveness, and responsiveness, moving on from obsessing about itself to obsessing about people. Those that achieve this will create fuel for future growth, and be recognized as the best institutions to bank with,» he said.
