For the sixth consecutive year, we have surveyed a panel of over 100 global financial services leaders for their thoughts on retail banking and credit union trends and predictions. The crowdsource panel including bankers, credit union executives, industry analysts, advisors, authors and fintech followers from Asia, Africa, North America, South and Central America, Europe, the Middle East and Australia.
For the first time, we also surveyed the industry, including banks, credit unions and solution providers (suppliers) worldwide to allow us to prioritize the trends identified. Our global market survey of over 900 organizations also provided an opportunity to review last year’s projections to determine importance. Finally, the global survey collected insight into strategic priorities for 2017 and the fintech players that the industry believed would have the greatest impact in the upcoming year.
By collecting insights from leading influencers, ranking the trends using an industry survey, and including extensive analysis around each trend, we have created the most comprehensive annual trend report in the banking industry. For the second consecutive year, the research, analysis and Digital Banking Report entitled, “2017 Retail Banking Trends and Predictions,” were sponsored by Kony, Inc.. The 93-page report is now available here.
Top 10 Retail Banking Trends for 2017
The ranking of the top 10 trends and predictions was done by providing a list of possible trends and asking banks and credit unions globally to provided their top 3 predictions. We asked some of the same questions of industry suppliers and vendors for a total of over 900 responses. Of the 760 financial institutions that provided their top 3 trends, the highest ranking prediction was that the industry was going to remove friction from the customer journey (54%). The next two most mentioned trends were the improved use of data and advanced analytics and improvements in multichannel delivery (mentioned by 54% and 45% respectively).
Most surprising was the emergence and importance given to the opportunity of open banking APIs (mentioned by 32% of FIs). This trend was only mentioned by a few industry leaders last year. Rounding out the top 10 for 2017 were; partnering with fintech firms (29%), expansion of digital payments (29%), responding to regulations (18%), exploring advanced technologies (11%), emergence of challenger banks (10%) and investment in innovation (9%).
Here is what some of our crowdsource panel had to say about 2017.
“The relentless speed of digitization and automation, the rise of fintech and regulatory initiatives will encourage all financial institutions to become more transparent and nurture richer ecosystems of data and partners. It will also force them to better foster internal and external collaboration, accelerate culture change and truly empower their workforce. It will urge them to balance tech investments for customers and employees and furthermore, create a need for open, cognitive systems which not only understand, reason and learn, but also interact with people, entities and other systems.”
“Looking at last year’s predictions it seems we are all the eternal optimists in the financial services industry. New competition is still developing, big data is still underutilized and banking experiences haven’t improved. In 2017, we will start evaluating our collective ‘innovation efforts’ – the labs, the funds, the departments and people – and start seeing some of the transformation the industry needs.”
– Duena Blomstrom, Fintech and Digital Experience Consultant at DB Consulting
“Consumers will take more control of their financial relationships and will look for digital tools for advice and insight. Banks will come to realize that fintech is not a threat, but rather an opportunity, and while a focus has been on millennials, Gen X and Boomer segments will become increasingly important to financial institutions.”
– Bryan Clagett, CMO at Geezeo
“Consumers will be increasingly exposed to financial shocks in 2017. Uncertainties around health care insurance, government funding of social services, and possible loosening of government regulations will expose more people to income and expense volatility. Banking will need to respond to these consumer needs.”
– Jennifer Tescher, President and CEO of CFSI
“Hold on tight because 2017 promises to be an uncertain one. With loosening regulatory controls, a crackdown on big banks, and tightened controls on fintech, it will be a year filled with ups and downs. Expect banks and fintech firms to batten down the hatches. Instead of developing new products and services, firms will focus on perfecting the products and services that they’ve created over the last 3 years.”
– Nicole Sturgill, Principal Executive Advisor at CEB
“Fintech has quickly become one of the biggest sectors in technology. 2017 is looking like this may be the year when blockchain races into production at the largest firms, PSD2 and other global regulatory changes associated with APIs take center stage, increased cybersecurity threats are omnipresent, and artificial intelligence transitions from sci-fi high concept to an everyday reality.”
“2017 will be the year of ‘convergence’ in financial services. There will be more cooperation between financial services and startups, blurring lines between traditional products (retail, payments & insurance in particular), and the acceleration of the convergence of technologies including mobile, distributed ledgers, IoT and cognitive computing.”
– Sebastien Meunier, Senior Manager at Cappuis Halder & Co.
“Share price rebound and interest rate increases, driven by the American election, will create more budget flexibility and space for innovation. For many organizations, it could allow firms to double down on old business models and infrastructure. This could mean that new fintech competitors have a lazy incumbent base to attack.”
– Simon Taylor, Co-Founder of 11:FS
“In 2017, we will see the scaling of fintech and the beginning of the post app world.”
“Because of rising interest rates and inflation, new opportunities for profitability in deposit, lending and wealth accounts will emerge. Agile organizations that can rapidly drive customer acquisition, and quickly launch new products to attract new customer segments, will be in best position to generate higher revenue and profit from this new environment.”
– Don Bergal, CMO at Avoka