“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.”
“Hyper-personalisation is a marketing tactic which leverages artificial intelligence (AI) and third-party real-time data sources to enhance brand messaging with relevant, context-sensitive information. For example, an email may be personalised with the customer’s name, but it could then be hyper-personalised by dynamically changing its content depending on the receiver’s past purchase history, physical location or even the time of day when the email was opened. Ads, too, could be hyper-personalised with CRM data and in-store experiences with a shopper’s online behaviour.”