The meaning given to the word “bank” is undergoing a revolutionary change. The traditional “blue chip” banks are facing massive threat from the influx of what newness has to offer to the banking industry and human experience at large. Bank processes are going through an absolute disruption and the usual day to day interaction with the average customer and his/her needs are re-aligning
Banking has moved on from what it used to be and is moving on faster towards what it can be.
The future of banking will hinge on the degree to which banks leverage the unique opportunities they have, how well they use the wealth of information at their disposal, the extent to which they capitalize on the insights they hold, the innovation that they can birth, and the extent to which their strategy, processes and activities revolve around consumer’s everyday life.
Consumer-centricity will play a critical role in the future of banking. An obsession with the customer will be the new normal. The banks of the future will immerse themselves in the customer’s problems and will think about the customer from start to finish. Everything the customer goes through when trying to use a product or engage a service will be about the customer.
Customer habits and preferences are quickly adjusting to a world where speed, efficiency and multiplicity will be the new normal. The solutions to their problems and answers to their questions will be provided instantaneously on their mobile device. Customers don’t want to go to bank branches or do banking. They want financial information and the ability to transact at the push of a button.
Technology will be the business of the day. Rather than providing banking solutions driven by technology, the bank of the future will be essentially a technological firm focusing on banking. 5G network will make browsing at the speed of thought possible. Real-time communication driven by 5G will make collaboration seamless.
The increased bandwidth of 5G will improve access to the unbanked/underbanked regions of the world.
Artificial intelligence and machine learning will also play a key role in transforming the industry, improving productivity, and creating new and exciting job opportunities within the industry. AI is already starting to do some of the work of humans in financial services. Chatbots and virtual assistants will do some customer service work and will help make loan decisions.
ALAT, Nigeria’s first fully digital bank, believes the true future of banking is about fitting in and thinking ahead. It is about fitting into various lifestyles so well that the presence of the digital bank syncs perfectly to all aspects of every Nigerian’s daily life.
For those in the mainstream banking industry, ALAT believes the emphasis will shift towards offering more useful and personalized experiences for customers as they try to integrate new technologies and expand digital offerings. Financial technology such as mobile payments and mobile banking will receive an even greater focus.
ALAT, as it celebrates 3 years of making magic, strongly believes the future of banking lies in thinking ahead of the customers’ goals, their ‘next big thing’ and what they should be doing with their money. The bank of the future mustn’t just stay ahead of the curve, it must draw the curve.