Nowadays, as banking customers are living in a connected world, the experiences they have in other industries impact the expectations they have from their financial services provider. This has led to an evolving relationship between customers and banks which requires banks to be more customer-centric and respond to the rising customer expectations. In its annual report, Capgemini is analyzing the top 10 trends in banking for 2017.
According to the analysis, the first notable trend is collaborating or partnering with FinTech firms to create an environment for growing innovation and rising customer expectations. The entry of FinTech firms in the banking industry has forced banks to look for new offerings by creating the best environment for innovation with the help of FinTechs.
Banks are also using open APIs to monetize their digital assets and data. API is a technology protocol which enables diverse software components to communicate. This enables them to integrate their products and services with third-party applications to provide customers a variety of products or services through the banking ecosystem.
Camgemini observe also a complete shift in the banking business model to banks as a platform (BaaP), in which they directly link with FinTechs and their innovative solutions and enable them to provide a one-stop shop for customers.
Among the other trends in the report are banks investing in cybersecurity systems due to the rise in cyber threats as well as the increasing adaptability of banks to public cloud services providing flexibility and agility. Banks are also more inclined to move to public cloud-based banking infrastructures with security and regulatory risks declining.
For the full list of trends and more information about them, read here.