What’s in Store for Banks in 2019?
Dan McKinney, Co-Founder and Chief Marketing Officer of Finxact, shares the trends that he sees are on the horizon for 2019.
With 2018 drawing to a close, it’s time to start looking at what the coming year may entail for the banking industry. As banks continue to adapt to new trends in order to provide a broad range of financial solutions, it will become more essential for them to be ready with a modern platform that can support near term innovation and eventual migration from antiquated and unnecessary systems.
Having a SaaS core banking system as an open system of record, which supports an entire bank’s functional and scale requirements can serve as the foundation for this new platform. The key to the future is putting a platform in place that enables rapid innovation now — and in the future when we don’t know what the market, technology, and innovation requirements will be.
What else will 2019 bring? Below I have shared a few more trends to watch out for in 2019.
Banks have always had access to massive amounts of customer data, but yet struggled with how to best access use that data to enrich the customer experience. Now, for the first time ever, the banking industry has a way to consolidate all of its mission critical data, in real time, and leverage it to drive transformation across their business. We are seeing the first wave of this transformation no with technologies such as robo-advisors, and AI driven chatbots. We will continue to see this innovation in this area as banks begin adding richness to their real time systems of record and enabling consumption of that data by connected services to better serve their customers.
Banks Becoming More “Invisible”
While there will always be bank branches, call centers, deposits, cards, ATMs, and probably even cash and checks — over the next year, we will begin seeing banks become more “invisible” in how they deliver their services. Banks will leverage their brand’s trust, data, and expertise in ways that support their customer’s lives and businesses. This may be in the form of sub brands, partnerships or even under existing brands. In fact, we may start seeing banks organize around “Reactive Services” (there will always be a need for reactive services like ATMs, mobile banking, and branches) and “Predictive Services” (services driven by rich data, AI, and machine learning) and the key to all this will be a rich, real time data.
Innovating at the Core
As banks continue to launch digital only banks to collect deposits, we will see banks begin to offer some truly innovative banking products/services to keep their new customers from “rate chasing” in 2019. We’re going to start seeing this now because it’s difficult to create truly innovative products and services if everyone else is configuring the same things in similar banking stacks. Therefore, banks will begin innovating “at the core” as forward thinking banks will need to go beyond just launching a parallel bank aimed at collecting deposits in a commoditized offering.
Looking ahead at 2019: innovation is a key priority for financial institutions. Adapting to new trends in order to provide a broad range of financial solutions will become more essential than ever to anticipate consumer needs.
Finxact is innovating the first enterprise class cloud-native Core-as-a-Service platform with a 100% accessible open banking API. Finxact’s modern architecture enables banks to rapidly deliver new experiences by creating products on demand and integrating new services as needed. www.Finxact.com