Intuit Financial Services, a CUNA Strategic Services alliance provider, and Emergent Research identify four trends that will redefine the banking experience:
1. A new playing field for financial services
Increasing regulatory pressures and competition from both traditional competitors and new entrants will drive financial institutions to explore new business models, leading to greater industry collaboration, partnerships, and consolidation.
2. Shifting segments and changing markets
Customers both young and old will demand more from their financial institutions as aging baby boomers entering retirement and Gen Yers approaching middle age will have new financial needs.
Competition to serve mid-market businesses will intensify, slimming financial institutions’ margins. Meanwhile, the small business sector will continue to expand, with the total number of small and personal businesses expected to increase by more than seven million over the next decade.
Financial institutions must understand and find efficient ways to meet the needs of these businesses.
Technology will take center stage in serving customers. With increased cost pressures and a growing demand for flexibility, accessibility, and personalization, financial institutions must accelerate their use of technology to efficiently meet customer needs.
The financial services industry will combine cloud-based platforms and applications, advanced analytical tools, ever-larger data sets, and social and mobile computing to design and deliver value-added products and services to customers.
4. Reputation and relationships rule
Over the next decade, the financial services industry will shift its focus from transactions to customized value-added services.
Through a combination of both virtual and brick-and-mortar branches, banks will develop stronger, more personal relationships with businesses and consumers, helping them manage risk, build wealth, plan retirement, and anticipate health care expenses.
Institutions that provide useful customer insights will succeed.
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