Is digital a threat or an opportunity? It is both, especially in the case of banks and financial institutions. Banks and finance institutions are using digital technologies to refresh old-fashioned branch networks and offer mobile and customized solutions to their account holders. But digital also increased competition in the sector, opening the payment market to players coming from retail, telecom and IT.
Banks and financial institutions are under greater scrutiny, thanks to tougher regulations and best practices manuals. Low margins are the new industry standards as customers resist to pay fees for basic services and competition prospers. Besides financial institutions, Start-ups, retailers, telecoms and IT multinationals have their own solutions for online, mobile and contactless payments.
The bank of the future relies on omnichannels. Banks and financial institutions need to streamline their operations, cutting administrative costs and reducing services fees, whereas still being able to wow customers with customized services online, at kiosks and flagship branches. Players in banking are also encouraged to develop new business models and venture into uncharted markets.