1. Non-Traditional Players are increasingly disrupting Profitable Banking Frontiers
•New entrants such as Fintech Firms are targeting Profitable aspects of the Banking Business and the Banking Industry is at inflection point with an increasing threat of disruption.
•Business Growth Opportunities and profit margins are declining due to industry fragmentation.
•Customers are expecting higher level of service from their banks.
•In order to provide enriching customer experience, Banks need to prioritize and critically address the areas of digitization, simplification, and insights and data.
•Banks are focusing to develop innovative products and services, often facilitating collaboration with Fintech firms.
2. Banks Continue to Focus on Innovation Investments to Retain and Enhance Competitive Differentiation
•With the increasing threat from new entrants and changing customer demographics and preferences, Banks are making investments to drive innovation.
•Banks finding difficult to attract new customers as well as retain existing customers, falling short of meeting customer expectations
•Innovation is the need of the hour to increase market share and to have sustainability advantage in long run.
•Banking Industry marching forward to an open innovation ecosystem with different players collaborating to develop new products and services.
3. Increasing Cyber Threats, resulting in Banks Investing in Security Systems
•Increased Cyber attacks pose greater risks to extant IT security practices, which is a matter of concern for Regulator
•Digital India becoming preferred option for customers, Banks will have to adopt biometrics and tokenization in addition to leveraging advanced authentication and security access methods.
•Banks to perpetually strengthen security system by adopting multi-layered authentication and internal control processes, without compromising on customer convenience.
4. Use of Cloud Computing for Core Business Activities
•Investing in Cloud Computing for core business activities as a measure of enhanced agility and improved cost efficiencies to support business strategy.
•Banks to adopt cloud technology for meeting security, privacy, performance, and regulatory requirements.
•Banks need to develop full-fledged cloud management platforms.
•Larger Banks may adopt cloud platform for back office activities followed by complex activities.
Keep watching this space for more updates on Emerging Trends in Banking!
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