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Essential Banking Trends for 2020 and Beyond, Deltec Bank perspective

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Essential Banking Trends for 2020 and Beyond, Deltec Bank perspective

October 25
21:20 2019
Essential Banking Trends for 2020 and Beyond, Deltec Bank perspective

Deltec Bank
The primary trend in the banking industry is a shift toward digital services according to Deltec Bank, Bahamas

The banking industry was not in good shape after the 2008 financial crisis. Over the next decade, a recovery to the tune of $124 trillion occurred. This upward movement in asset value helped to right the ship. Since that is a lot of money to manage, the trends for the banking industry are looking to counter disruptors while improving large-scale innovation.

Neobanks, startups, and non-financial companies are getting involved in this area because of the technological improvements that are happening. As we look toward 2020 and beyond, these are the trends that will have the most influence on this sector.

List of the Banking Trends to Watch

According to Deltec Bank, “The primary trend in the banking industry is a shift toward digital services.” This action includes an increase in online and mobile banking options. Customers are expecting unprecedented levels of speed and comfort with their preferred institutions. The desire to go to a physical location for services is quickly disappearing.

Here are the other trends we will continue to see in the coming years.

1. Advanced Analytics

Every action we take online creates information that becomes usable to meet our future needs. This trend is an autonomous (or semi-autonomous) examination of content using sophisticated tools to glean more in-depth insights. Pattern matching, visualization, and cluster analysis work with other techniques to create individual customer profiles.

This trend allows financial institutions to have a better understanding of their customer’s needs. It is an umbrella that creates better predictions because it answers the “what-if” questions that businesses have with consumer interactions. 

2. AI Machine Learning

Artificial intelligence allows banks to implement virtual assistants that can help their consumers. These bots and similar services create automation opportunities for the routine tasks that customers require. If AI machine learning can help people to deposit, transfer, or withdraw money without human assistance, then employees are free to work on other projects.

This trend can also improve the amount of customization that is possible within the agency. The data that customers generate can let the AI predict future needs. It is a process that reduces risk, improves relationships, and helps consumers meet their financial needs more effectively.

3. Mobile Banking

Mobile banking felt like a luxury in 2008. Now it is a necessity for the average consumer. Only 11% of people are not using this service for their accounts in a 2018 survey. When looking at the data from Millennials, only 3% are not opting in for this feature. A majority of customers even say that they will change banks if their institution provides poor services in this area.

Look for banks to include new features with their mobile banking. This trend may even include banking-as-a-service options to fill in the needed gaps that the data we all create can identify to these institutions.

Banking Industry Trends and Analysis

There are several facets of the banking industry going through an evolutionary process right now. It is critical for anyone who has connections to this sector to stay informed with the trends that are developing for 2020 and beyond.

It is still a challenge in the United States to obtain a banking license. This regulatory issue is limiting the number of disrupters active in the marketplace. As regulations adapt to the shift toward digital, expect this concern to disappear as customers continue to ask for better services and more convenience.

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

Media Contact
Company Name: Deltec International Group
Contact Person: Media Manager
Email: Send Email
Phone: 242 302 4100
Country: Bahamas
Website: https://www.deltecbank.com/