Future Forces 2023: The megatrends shaping the banking industry
24 October 2023
For all the changes that digitalisation has brought to the banking sector in recent years, market structure has shifted relatively little, with incumbent financial institutions remaining dominant.
That could change in the coming years, however, as fintechs and, potentially, big technology companies develop the capabilities to reach diverse consumer and business banking segments. Continuing regulatory support of open banking practices will accelerate the growth of such competition.
A couple of key takeaways
Securing the necessary talent and skills is the number one challenge that banks will face over the next ten years, selected by almost half of industry executives (42%).
The emergence of artificial intelligence is raising the technology stakes for banks. Opportunities exist to boost efficiency and improve customer experience through hyper-personalisation, the top market development (38%) likely to have the biggest impact on banking businesses. However banks must modernise their existing IT processes and infrastructure to tap into these.
