Finance & Banking

There is a worldwide digital transformation that is creating immense opportunities for the banking and finance sector. This wave is altering the very nature of personal banking and financial transactions based on channel of choice, ease and greater access, a digital only process, integration of a service while offering simultaneous increased automation and efficiency to both customers and commerce. However, it appears that only over 30% of banking and financial institutions have achieved their current digital transformation. While the current steep incline toward 2030 is a complete digital revolution for industry and nations. Clearly the sector will have to accelerate through a combination from within and external regulatory pressure to fill the lag.

Smart phones and wearables offer greater access choice through the buy now and play later (BNPL) strategy where financial and banking social inclusion strategies offer a line of credit to potential customers. As we move toward 2030 a digital only process will emerge across several financial segments such as cryptocurrencies, digital assets or online currencies as the precursor toward the central digital currency. Yet banks remain physically bound given the need to address a wide range of banking issues through direct and in-person engagement. Technologies such as blockchain where custody is not offered to one person is being deployed, and it is ensuring greater security and cyber-security at a much tighter level than ever before.  Removing at least one element of physical authentication, and appropriately so given the sector’s historical commitment to incremental and step-by-step change approval.

Additionally, there is a call from within the banking and financial sector to swiftly move through 5G and Web 3 technologies where decentralisation will play a key role. Offering greater levels of freedom from traditional bricks and mortar. Where access can revolutionise both customer interaction, interface and lower the barriers of market entry. As it has been the case for digital only organisations that offer a non-physical service line. Perhaps not a limited view of FinTech and traditional banking and finance, rather a play of FinTech, traditional banking and finance as well as digital only. Played by both incumbents and new entrants. This we predict will be the very foundation of Supper Apps that will challenge traditional channels of payment and transactions. We see the future of the banking and finance sector across the decade through the impact of Internet of Things (IoT) and social financial inclusion. Creating new consumer choices and a higher capacity to choose as to whom and how customers wish to bank with. Creating pools of new revenue, lowering of both barriers of entry and the need for physical locations, provided the sector can capitalise on the digital transformation wave.