It’s not just the end of the year, but the end of a decade; one that saw massive changes in the banking sector. It’s no secret that technology has been the largest disruptor our industry has seen in quite some time. Fintech organizations invaded traditional financial operations at the perfect moment just as consumers’ priorities were altered to reflect increased demand for convenient transactions. It forced all of us in banking to ask, how do we conduct business less like a bank and more like a tech company?
Since 2010, we saw technology dramatically reshape the financial landscape causing many banks to rethink their infrastructure. Banks that embraced technology have capitalized on scaling their business by acquiring other banks, as well as their client base, loan activity, and deposits. The smaller institutions that were unable to handle the costs of technology investments and competition were either acquired or forced to partner with larger institutions to take advantage of these new capabilities.
One of the significant ripple effects we saw from technology was the change in how banks compete to acquire talent. Financial employees’ roles have changed dramatically in recent years. Positions of the past – such as tellers and account managers – are no longer required. With increased technology comes a war for talent and the need for employees to be more proficient in cloud operating systems, nimble enough to learn the latest technologies and adopt new skills on the fly. It’s also forced banks to compete with behemoths such as an Amazon, Google, and Facebook when trying to hire top talent.
The way we bank has been affected by technology as well. This decade we’ve seen significant digital disruption through the rise of mobile banking. As we all know, the economy is now built around companies using the newest advancements in digital technologies. The financial sector is no different. As we look to the future, the growth of technology in banking shows no signs of slowing down.
Two areas poised to play a significant role in 2020 and beyond are Artificial Intelligence and Big Data. A.I. machine learning has drastically accelerated organizations’ ability to collect and use data. While banks have long had troves of data, we have not yet had the capabilities to fully tap into it. In the next decade, we will be able to better apply artificial intelligence to process transactions in a frictionless and error-free manner while predictive analytics will help banks better understand what our consumers want and need.
The financial organizations that can harness these solutions in the next decade, and use them to their advantage, will succeed in separating themselves from their competition, increase efficiency and offer solutions tailored for the ideal customer experience.
Read More: Banking On The Future