It’s a known fact that banking is not what it used to be. The financial field is going through big changes, almost by the year, and some people have even projected that banking won’t exist at a certain point.
New technology is bringing in the future of banking, and it’s happening faster than we know.
Banks around the world are being challenged by global actors’ increasing presence. Payments across country borders are continuing to rise, bank services are becoming limitless, and global actors are elbowing their way into new markets with tremendous force. Global bank and financial actors are now mobilizing for increased customer participation in self-made ecosystems, through open banking and new digital currencies.
Who can provide the most value?
One of the central questions is, should one go to war about the customer base? Will banks be able to win this fight – or more importantly: should they? How will new digital currencies transform the payment infrastructure? It’s becoming increasingly important to understand the future banking customer, and the winner will be the one who can solve their customers’ problems in the most effective way.
With this in mind, it may just be that banks should rather explore how they may make use of local forces and provide increased local value, instead of exclusively thinking about scale.
Adopting the “best practices”
Staying up to date on the “best practices” is a big part of staying ahead of the game in the financial industry.
Modern banks are becoming increasingly good at tailoring their services to their customers’ needs. Some ways they do this is through making banking services available online and on the phone, taking care of individuals’ mutual funds, and letting several people go together to take up loans.
For example, enabling customers to apply for loans with a co-applicant or guarantor, especially for consumer loans, is beneficial both for the banks as they get more security, and for the customer, as they will get cheaper loans (more info about applying with a co-applicant or guarantor: https://lanfordeg.no/forbrukslan/forbrukslan-med-kausjonist-medsoker/ (Norwegian).
These types of win-win situations for both banks and customers is what we especially believe banks will need to create more of when we look into the future of banking.
The time when only the bank “won” is we believe is over, and now both parties have to be happy because the customer simply has so many options.
So to summarize, the banks that can provide the most value for their customers and implement programs that are beneficial for both parties, are in our view the ones that will stand the test of time in the future.