New and disruptive technologies changes banking – starting now
As promised in my earlier blog, I will take you through the on-going changes to the financial sector services and share my views on how these, together, might create a perfect storm that will change the financial industry forever.
Banks and insurance companies will be affected by four key factors:
- New and disruptive technologies
- New directives from the European Union
- Industry convergence and SPEED
- Changing customer buying behaviour and the new sharing economy
I’ll start by doing a deep dive into two of these disruptive technologies – blockchain and Artificial Intelligence (AI)/ Robotics.
Blockchain has the potential to revolutionize beyond the financial industry
Disruptive technologies usually do not end up on the public radar until it has been transformed into a consumer product that is widely adopted. Those with insights into an industry understand the significance before that. Blockchain is such a technology.
Born to enable the first-ever digital currency “Bitcoin”, the blockchain, or “distributed ledger” technology holds enormous potential to revolutionize not only the financial sector but areas widely outside of this sector as well.
With blockchain, the monopoly of being able to read and write “the truth” to the ledger will no longer be controlled by one entity. It will be controlled by the whole chain. We will see ecosystems forming around financial use cases, where a network of trusted partners will maintain the ledger and share the information, all to equal benefits.
Artificial Intelligence will hugely impact financial services
Secondly, technologies known by names such as Robotics / Artificial Intelligence / Learning systems form, when woven together, new capabilities, making sense of Big Data with the refined ability to understand spoken language and analysing unstructured images. Whatever technology is underlying, and whatever you want to call it, we will INTERACT differently with data in the future, in order to make sense of the enormous quantities of information.
When these technologies reach front end we will fully comprehend their power of improving customer service. It will also open up for new players, specialising in these technologies as their core business. They will compete head to head with traditional banks and insurance companies who sometimes struggle to make use of their own data and do not consider incorporating data from external sources in order to deepen their customer understanding.
Don’t miss out on my next blog post, I’ll talk about how the new directives from the European Union will affect the financial industry with regards to open API’s and new data sources.