“As of October 2019, the U.S. personal savings rate stood at 7.8%, according to the St. Louis Federal Reserve. And a survey by Bankrate found that 40% of Americans can’t come up with $1,000 to handle an unexpected emergency.
At a time when consumers are begging for help, banks have a chance to be a hero and better their bottom line in the process. Automated savings apps not only enhance the customer experience but keep money in the bank that would have otherwise been spent.”
“Plaid develops financial services APIs. It is akin to what Stripe does for payments, but instead of facilitating payments, it helps developers share banking and other financial information more easily. It’s the kind of service that makes sense for a company like Visa.”
“Take Accenture’s Five Big Bets for Retail Payments in North America report, published in October last year. In a wide-ranging survey of US and Canadian banking experts, it found that between 11% and 15% expect to lose ground to fintechs and challenger banks, describing a market in which incumbents find themselves on unstable ground and faced with “truly transformational change”.
The paper, Banking of the Future, Finance in the Digital Age, also states that while technology and data advances are transforming the industry, future success in banking will rely on achieving the right balance between innovation, risk management and consumers’ behaviour and expectations.
The report, which is written by financial technology expert Professor Markos Zachariadis, says that the hyper-personalisation of banking, which will be enabled by technologies such as AI and augmented reality as well as advanced data analysis, and through which customers will take greater control of their own personalised data through ‘digital ID profiles’, will replace traditional product sales and service models.”