Deutsche Bank's Tim Mason and Esusu's Alexis Sofyanos share their insights into key challenges in finance today. Where will the next wave of innovation come from? How can financial services deliver on new customer expectations? How are innovations in finance and social good intertwined?
Open banking has enabled brands across the board—from fashion to mobility to healthcare—to act as financial institutions, embedding loans, payments, payroll and more into existing offerings. In addition, an ongoing wave of consumer tech innovation is merging physical and digital worlds at daily touchpoints, meaning we can navigate payments without even thinking about the financial aspect. Banking is moving into the subconscious. We’re seeing fast-evolving customer experience expectations and new competitive challenges.
of respondents said they expect their banking to be easy to use and available anytime, anywhere.
Financial services are undergoing a dissolution of previously firmly established boundaries. We're on the brink of a wave of novel products and services, made for a world with less rigid industry perimeters. This has already happened in the automotive industry, with the move from ‘car’ to ‘mobility’—extending the value chain beyond the physical product and creating a vaster space for interpretation. Financial services are heavily regulated and tend to be one of the more conservative industries. As a result, it can be slow to react, but when it does alter its course, the effects will be felt widely as money is so foundational to (and intertwined with) other industries.
Design Mind Studio Sessions: The Future of Banking
New sources of data, advanced analytics and AI-powered insights have given rise to innovative ways of creating personalized experiences. New customer needs are emerging, such as a desire for portability of banking, personalization of offers and an expectation for cutting-edge tech to be used to deliver surprising, smart products and services.
It’s up to banks to sense the evolving needs of consumers, gain semi-psychic abilities to ensure they give them what they want and enjoy deepened relationships and co-created visions that traditional finance could previously only dream of.
Together with frog, Konfío developed an identity design and strategy that showcased an ongoing commitment to approachability, launching rebranded offerings that streamlined all its tools and products into a unified experience.
Ecosystems Are Go
Invisible finance is connected at its core. The old saying goes “no person is an island”—and no bank is, either. We must be prepared for the world of finance to become more complex and less tangible as it evolves alongside the disruptive and game-changing digital asset economy.
Growth in the sector must forge partnerships to deliver a responsive, CX-focused ecosystem of capabilities. The bank-centric method, with traditional financial institutions relied on for clearing and settlement, is rapidly being replaced. Today, various third parties can enable settlement by non-financial service providers, on a peer basis or through a collaborative model.
Fortune Favors the Bold
The interconnected developments of invisible finance, next-gen banking and the digital asset economy will have major implications for all industries and will create significant challenges for governments, central banks and regulators.
The approach in mindset needed for this new world of business will take many years and is markedly different to current digital transformation initiatives. Incumbent banks must overcome the challenges of legacy-based infrastructures, utilizing software algorithms, machine learning and artificial intelligence in the service of enhancing financial experiences.
“The benchmark for financial products and services has been elevated by entities that are not even part of the industry.”
Vice President – Innovation, Strategy & Design
Financial services are becoming so deeply embedded in our technology and in industries that they are growing nearly invisible. But they won’t go away. Rather than step aside and be relegated to serve as the pipes behind the scenes, banks have the right and the reason to own their customers’ relationship with their money.
Download the full ‘Banking on Invisibility’ report to go deeper into the three strategies of sense, respond and activate to develop new products, services and experiences for a shifting financial landscape. Learn how to understand the coming waves of change and begin to formulate a bold vision and tangible actions to move into next-gen banking.
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