Within 10 years from today, many banks will vanish if they are unable to adapt to the new environment to become more client-oriented and tech-savvy, according to research firm Forrester.
The banking landscape is rapidly evolving due to a myriad of emerging technologies, such as artificial intelligence, alongside the simultaneous demand for greater client-oriented servicing. According to a report by research firm Forrester, many players had undergone digital transformation but remained transaction-focused organizations, leaving customers still feeling underserved.
«Many banks won’t exist a decade from now if they resolutely stick to old ways,» said Forrester principal analyst Alyson Clarke in a blog post based on a report entitled «The Future Of Banking Is Built On Trust». «Banks must prioritize customer obsession, transform their business models and embrace innovation to build trust and deliver meaningful experiences.»
Four Characteristics
In order to avoid extinction and remain relevant, the report suggested adopting four characteristics.
Firstly, banks could use tech and far deeper customer insights to insert financial services at the customer’s moment of need, potentially at the expense of brand visibility. Secondly, they could stay connected via tech, partnerships, ecosystems and platforms across industries to deliver outcomes. Thirdly, they can create value from data and elevate custodianship of consumer trust. Finally, they can align their values purposefully around environmental and social values.
«By taking an invisible, connected, insights-driven, and purposeful approach, banks can navigate the future of banking and create value for both customers and the bank,» Clarke added.
