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BANKING OF THE FUTURE: FINANCE IN THE DIGITAL AGETechnology is rapidly advancing and is changing almost every aspect of our lives. Whether that is getting from ‘a’ to ‘b’; how we stay in touch with our friends and family; do our shopping; or relax and be entertained. Technology is also becoming smarter as companies harness the power of data to personalise the products and services they offer.
Digitisation is also driving change in banking and financial services. People are used to technology making their lives easier and expect the same level of simplicity and intuitive interaction from banks, as they have come to experience and benefit from in other areas of their lives. This has led to people increasingly turning to online or using their smart phones to manage their financial lives and interact with their banks.
But the impact of technology and data is going to be different in financial services because of the distinct aspects of this industry. For example, the need to protect people against borrowing money they can’t afford; to stop them from making complex and risky retirement investments they don’t fully understand; or protecting them, and the financial system, against fraud and financial crime.
Financial services is an industry inherently based on managing risk, unlike some other consumer-facing industries. Regulation is fundamental to ensuring good conduct, upholding the integrity of the financial system and protecting it against threats. Technology and data introduce new complexities to an already complicated risk management landscape.
