The future of banking is here – and it is digital. Trends over the past decade, away from the banking of the past, have only been accelerated by the impact of the global Covid-19 pandemic.
And the way in which banking will continue to evolve in the months and years ahead is apparent in global research that Atos recently conducted with hundreds of banking leaders
We found that two-thirds of retail banking leaders believe transforming the digital customer experience is a top 5 priority over the next 12 months.
A further 80% believe that digital is essential to achieving their decarbonization targets. Almost half say account security and protection from fraud is a key priority. In short, as we head further into the 2020s, digital banking is becoming smarter, greener, and safer.
Here, my Atos FS&I global leadership colleagues give you a flavor of the digital direction of travel and set the scene for the in-depth insights that this Digital Vision contains.
The intelligence, agility and efficiency with which banks leverage customer data is the foundation for differentiation and success – but only if you can translate it into an experience that makes your clients love you.
Atos asks how every process and every business technology within banking can be exploited to contribute to better customer experience.
We see the following essentials for banks in the years to come:
Banking will continue to shift to digital banking platforms and be integrated seamlessly into multipurpose platforms and other industries’ value chains.
Traditional banks matter, as they have the cash, the names, the trust, and the customer base. However, they need to continuously evolve to keep pace with digital evolution.
Fintechs will function as disrupters in this market development, with the most successful of them being acquired by one of the big techs.
Building digital business models and integration into digital platforms, superior customer experience, providing microservices incorporated into other industries’ process chains, and unbundling core banking are the main principles to stay relevant.
Banks can lead the development of more sustainable business models for their customers and drive progress on decarbonization across the whole economy, while at the same time using digital to dramatically decarbonize their own operations.
The industry-led, UN-convened, Net-Zero Banking Alliance bringing together 53 banks from 27 countries representing almost a quarter of global banking assets (over US$37 trillion) is the most vivid demonstration of what is possible through collective action.
Big data, artificial intelligence, blockchain and the Internet of Things (IoT) now offer a range of ways in which access to sustainable finance can be expanded.
Smart technologies can provide insights that can better inform risk assessments directly impacted by climate change, such as flooding, storms and extreme weather.
Development of lending policies and approaches that use metrics and targets reflecting broader climate-related ESG and enterprise risks, as well as more traditional carbon risks will be key.
A better appreciation of financed emissions and the integration of scenario analysis to review the potential future impact of portfolios will give banks new opportunities through the green transition. This will allow the development of new products and business opportunities as a result of market share development in growth markets and ultimately lead to stronger relationships with their clients.
Every bank must promise protection of customer data. Every bank must achieve regulatory compliance. All aspects of trust and compliance must be assured across the digital banking landscape.
This is a difficult challenge in a time where banks are the subject of an ever-increasing number of cyber-attacks. The nature of threats continually and rapidly mutate – and digital security and compliance practices must be designed to anticipate this volatility, ideally with the following components in place:
Cyber risk management: Putting in place a comprehensive policy that covers effective Business Continuity Management and enterprise-wide governance.
Cyber security advisory: Integrating every element that relates to security processes within a complete security architecture, with full integration of IT and Operational Technology, ensuring that sensor information is also managed and protected.
Cyber operations: Keeping the entire IT environment secure, based on a Security Operation Center (SOC) and incident and event management.
Insider threat protection: Effective methods for ensuring that data is not lost as a result of internal attacks, routine migration, or any other factor.
Secure cooperation: Bringing the additional level of physical security that only integrated encryption technologies can offer, including biometrics, Public Key Infrastructure or use of cards and tokens.
Digital identity & access control: From outside and within an organization, the greatest danger often comes from unauthorized access. Atos solutions deal with this critical issue through Identity and Access Management (IAM), Role and Compliance Management and building Federated Identity for secure single sign-in.