2. BaaS and open banking

Traditional bricks-and-mortar banking and early digital banking operated in strict silos. Banks did not want to share customer information – and technology and regulatory hurdles prevented it anyway. Open banking initiatives, including the EU’s second payment services directive (PSD2) and the emergence of banking-as-a-service (BaaS) are rapidly breaking down traditional banking silos.

For example, PSD2 gives qualifying providers direct access to customer account data enabling banks to offer new types of products and services to their customers. Furthermore, challenger banks and FinTech start-ups can provide unique services built on legacy banking data. Likewise, BaaS provides API-level connectivity that opens up banking services to companies that were traditionally excluded.

Deloitte’s 2019 consumer banking survey found that 84% of respondents use online banking at least some of the time.

3. Blockchain and asset tokenisation

Bitcoin itself may not yet have the revolutionary impact its supporters hoped for, but the technologies that enabled Bitcoin are showing real potential. Blockchain and distributed ledgers in the broad make it easier for banks to facilitate payments, to securely manage customer data and to meet KYC requirements.

Banks should also take note of asset tokenisation which leverages blockchain to enable the securitisation of assets. As a result, large and illiquid assets are accessible to a broader group of investors, and easier to trade – digitally. Tokenisation not only broadens the investment base but also reduces settlement times and smoothens the reconciliation process too.

This whitepaper will help you roll-out trials and pilots of blockchain with optimal investments.

4. AI and RPA

Automating repetitive processes is a common goal of digital banking strategy, and several technologies are bringing enormous benefits. Robotic process automation (RPA) is used by banks to reduce costs and to improve operational reliability. RPA is easy to implement too, only functioning on top of existing banking systems, even if these are legacy in nature.

Artificial intelligence (AI) requires a more systemic rethink when integrated into digital banking solutions, yet AI can truly transform digital banking. AI stands to change digital banking as we know it. From conversational interfaces that reduce the need for human customer reps through to AI-driven wealth management that brings financial advice to customers.