Breaking News
Trends from Finovate Europe
What are the trends your seeing this year?
There are a number of trends emerging within the banking and finance industry, in both the IT and social realms.
Firstly, the digitalised market will continue to grow, with more banking institutions struggling to keep up with fintech’s as they emerge with modern technologies offering more agile, speedy, customer-centric services. Traditional banks will update their outdated technology systems to become fully digitalised. This transition is crucial to keep up with both competition offerings and rising customer expectations.
Secondly, as we have seen, the emergence of ‘big tech’ has led to instant expectations by consumers and business customers. The expectations for banks to meet customer demands relies on becoming a more customer-centric service. Consumers expect benefits for the sharing of personal data, automated digital support, the protection of personalised data, easy branch access, personalised advice and product offerings that go beyond banking. This will continue to be a main concern for banks and will become a dominant factor in defining a financial institution.
Emerging technologies will continue to dominate Fintech in the years to come, from the likes of automation, cloud computing, and blockchain, to the emergence of a phygital approach – integrating the digital and physical offerings.
The financial services industry will become increasingly interested in automation technologies, with the expectation and hope that these software programmes will result in increased efficiency and productivity whilst reducing costs and improving customer experiences. Additionally, cloud computing will proceed to prove itself as a main attraction to boost capacity to handle data, becoming crucial in an era of big data. Blockchain on the other hand, can eliminate risk of fraud in areas of banking, a quality that is rising up in customer expectations with protection of personal data becoming ever more important to consumers.
As we see these technologies taking over the industry it will become increasingly important to balance both the digital – online services, with the physical – offline services. The integration of such technologies and human touch points will allow organisations to ensure compliance to regulatory processes.
In the social realm, the coronavirus is already significantly impacting the global economy, as the pressure on banks increases, destabilising cost-to-income ratios through lower revenues and higher spending. As the outbreak worsens we can expect to see further cost cutting and efficiency programmes within the financial industry.
On the fintech side of things, we expect to see funding become more difficult to secure. This will not only open doors for consolidation but also force some departures from the market.
What brought you to Finovate?
Attending Finovate Europe, not only enabled me to network with professionals across the industry, but I was also able to gather vital market intelligence. This provided me with visibility on emerging partnerships and collaborations, customers evolving needs, as well as new innovative ideas.
The conference offered insights on new trends within Fintech, for example; how convenience is becoming the new loyalty; the emergence of new digital currencies; how banks can stay competitive in the age of the challenger; the impact of 5G on mobile banking, artificial intelligence and its influence on business strategy and profitability; and how banks will begin to turn compliance into a competitive advantage.
What announcements are you making this year/future plans for the business?
This year continues to be a year of growth for five°degrees, offering cloud native solutions to banks as it becomes ever more important to update legacy systems and meet today’s standards. five°degrees and its flexible and open architecture will continue to enable real banks with high responsiveness to rapidly changing customer demands, regulation, and techinnovation.
Additionally, this year, we will be launching a new version of our Core Banking Solution Platform matrix. Although cloud-native core banking is still new, due to its impact, it’s set to become essential for any financial institution. Taking advantage of the opportunities this solution offers, banks can increase efficiency, security and cost savings. Enabling them to refocus resources to better understand and serve customers.
Thomas Muth, Fintech Specialist for UK and Europe, five°degrees
- Cogo and Carbon Literacy Project Join Forces to Help SMEs Become Carbon Literate Read more
- Travel Debit Card Currensea Launches New Card Offering Best FX Rate on Market, With Benefits Including Global eSIMs, Discounts on Car Hire and Luxury Hotels Read more
- W Chain Partners With QuillAudits to Secure Blockchain Payments Read more
- Over Two-Thirds of Midsized US Businesses Are ‘polybanking,’ Survey Finds Read more
- Allica Bank Rolls Out Further Rate Reductions Read more