FINTECH
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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 ”.
However , in a report published in November exploring what the next decade holds for incumbents in the age of digital banking , HSBC suggests that this is a “ common myth ”, highlighting the growing landscape for collaboration between banks and fintechs and suggesting that “ we are already in an era of innovative cross business collaboration which many would have not imagined a few years ago ”. 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 hyperpersonalisation 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 . This will create an environment in which banks will become ‘ trust brokers ’ in the management , development and safeguarding of these IDs , unlock new revenue streams and access thirdparty services outside of traditional financial services .
JANUARY 2020