“The Future Of Individual Banking”.
“The Future Of Individual Banking”.
“The Future Of Individual Banking”.
“The Future of Individual Banking”, according to successful businessman Metin Liçis.
Post-pandemic, he emphasized that, for radical industry reshaping, one has to look at five broad hypothetical scenarios that are forward-looking.
METIN Liçis stressed that there are times when customers can imagine a future where all their financial services are managed through digital wallets, managed by non-bank companies such as Apple, Google and Uber, or another potential future where a handful of mega-banks dominate global markets.
He also went on to say that there will be a future where traditional currency is obsolete and transactions are largely made through cryptocurrencies and digital tokens.
Metin Liçis pointed out that “Looking ahead, it is very clear that there is no clear future for the huge Individual banking sector, on the contrary, there are various possibilities for how the next decade may develop.
Today, Individual banking is at a critical turning point, and he said he is not exaggerating to say that ten years from now, the industry as it is known may become irrelevant.
Five scenarios for the future of Individual Banking
- Front-end revolution.
As embedded finance gains momentum, new players outside the traditional banking industry are taking over the banking “front end” of customer relationships and incorporating financial services into their platforms.
- The winner takes everything.
Stating that it is thanks to a wave of consolidation that it has resulted in several mega banks and fintech companies managing the banking environment, Liçis said that customers are turning to the biggest, most personalized and most convenient platforms, often without any concerns about data privacy or choice.
- Scattered view.
By identifying a clear target segment, the winning players develop a consistent offering to meet the needs of these customers.
“The Future Of Individual Banking”.
- Resurrected, resurrected regulators.
Regulators are expanding their technology and cyber risk capabilities and increasing their monitoring and oversight with the explicit goal of protecting customers. Governments increase barriers to entry as antitrust actions push the industry out. This regulatory burden makes it difficult for banks to innovate, leading to increased standardization of products and services and reduced opportunities for firms to differentiate.
- The rise of the central bank digital currencies.
The steady decline in cash usage, combined with the introduction of digital currencies (CBDCs) at the one hand, has led some major banks and technology firms to maintain their current service offerings by purchasing leading players from the cryptoecosystem in order to compete.
As a result, no matter which scenario dominates, organizations that focus on developing a technology-enabled transformation, creating a data-driven customer focus and building broad-based trust will win the right to compete.