Despite its persisting dusty, pinstriped image, the finance sector has been embracing technological and social change for quite some time now. Internet banking is hardly new, and cheque books and bank branches are now going the way of bowler hats and adding machines, as the sector becomes more attuned to technological developments.
The industry is still dominated by big institutions established in the Victorian age, however, who – beneath all the snazzy new developments – are in many ways still entrenched in the older ways of doing things. Sometimes literally so, with some old IT systems dating back to the 1970s.
But with the market opening up to allow both smaller fintechs and larger technology companies such as Apple and Google to provide financial services, even the incumbents are starting to redirect their energies. The concept of omnichannel banking, where customers access and manage their accounts via multiple channels – branch, online, at an ATM or over the phone – is becoming the norm. And the EU’s new PSD2 regulations have now put customers even more at the forefront, leading to the emergence of open banking, where customers can access all of their financial information from one place.
The future of banking will undoubtedly see greater digitalisation across the board. And with even the legacy banks getting in on the act, lest they get left behind, it’s only good news for consumers.