Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Banking trends to watch for in 2018

Blog
13th February 2018

Banking is one of the fastest changing industries in the world at present. The traditional incumbents are implementing many new innovations as new startup brands launch a bid for market share. I have often mentioned how the new bank brands can design and mould their services exactly to customer needs, but what are the other key trends to watch for this year?

FinExtra published their list and from that I would draw out three key trends that I think are really going to change banking this year:

  1. Open Banking
  2. Cyber Threats
  3. Mobile Banking – launched by big brand banks

Open Banking is a result of a European Union directive known as PSD2 – Payment Services Directive 2. That doesn’t sound very exciting, but it is a major change in how banks operate. Every bank needs to use a standard gateway (called an API) for their data. If a customer gives permission to a bank or financial service company to access their personal information then other organisations can tap into your bank and extract information.

The most common immediate use for this is to connect together the various financial products that customers are using so a consolidated report can be constructed – putting information on your loans, credit cards, mortgage, and savings all in one place even if they are managed across several different banks. However, I expect many new companies to think of great ideas on how to help people manage their money – especially to watch for trends or alerts in your spending. Many new apps will soon be launched as people get more familiar with Open Banking.

Cyber threats are on the increase and this is an important topic for 2018 because of another European Union directive called GDPR – the General Directive on Data Protection. In summary, GDPR gives customers much more control over how companies use their data. The old days of companies being able to use your personal data because you ticked a consent form that was not even read are over. Companies must be transparent about how they are using your data and all customers have the right to have their data erased. Enforcement of the new rules will start in May 2018 and the penalties are severe – fines can be a percentage of company revenue.

The big traditional banks face an existential threat from Financial Technologies – Fintech. Completely new banks can be launched using apps and those companies don’t need to manage old legacy IT-systems that run overnight batches to serve an enormous branch network. They can design apps that work exactly how the customer wants. It’s no surprise that some of the big players are now deciding that they either need to launch their own spin-off app-based bank or acquire one that is already in the market.

That’s three really big challenges to the banking industry and I expect we will see a lot of news about them in the coming year. What would you suggest as another change or trend to watch in 2018? Leave a comment below, or get in touch on LinkedIn and let me know.


Leave a Reply

Your email address will not be published.Required fields are marked *


Helen Murray
Article by: Helen Murray

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Blog
AI: Tackling the Global Skills Gap

Author: Craig Gibson, Chief Commercial Officer, Webhelp The swift emergence of AI and automation technologies is creating a strategic challenge in terms of expertise. Increasingly, businesses are struggling to attract and retain the people they need. Webhelp’s Director of Strategic Marketing, Dave Pattman, examines the AI skills gap and international data trends to find creative ways to solve...

News
Pedalling hard for CF Warriors

Webhelp's Director of IT services, Stephen Dickson, joined record breaking Cystic Fibrosis warrior, Josh Llewellyn-Jones, this week, as he attempted his latest endurance feat by cycling from Edinburgh to Cardiff in just five days. Stephen cycled with Josh and his team for the final three days of...

News
Ten Heart-Warming Calls Show Why Consumers Prefer Human Customer Service

Leading customer experience provider Webhelp asked 8,000 contact centre employees to share their most distinctive customer interactions   4 April 2019 The woman whose cats eat better than she does. The holiday shopper who provided life advice and inspiration. And the mum-to-be who was...

Whitepaper
AI AND AUTOMATION: IMPROVING THE CUSTOMER EXPERIENCE

How do we really want to interact with brands? What do we really think about AI and Automation? How important is it to strike the right balance between human talent and AI and Automation for CX? Read our new paper to find out more.   The Webhelp Disruptor Series. Be part of...

Case Studies
Webhelp People Analytics

...

Load more
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook