FinTech Magazine January 2020 | Page 36

FINTECH

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to standardise the development of technologies such as AI for financial services , a better balance between innovation and safeguarding customers and the industry will be achievable .

Customer experience and personalised services will drive the future of banking . This , on a growing level , has been the case already in recent years thanks , in no small part , to the proliferation of 24 / 7 mobile and digital banking . The future will be no different , says HSBC , with traditional services becoming less common in the face of consumers taking greater personal ownership of their data and their banking . In particular , the report points to the creation of ‘ digital IDs ’. These datadriven ‘ identities ’ will naturally contain financial information , but also broader personal data such as profiles , typical patterns of activity and preferences .

The result of this evolution will be an era of ‘ hyper-personalisation ’ in which banks will move towards the selling of experiences rather than products , HSBC says . In such a scenario , services will be tailored to individual customers , driven by data as well as newer technologies such as the Internet of Things and 5G . Bottomley adds : “ Customers can expect a highly-personalised service determined by their individual requirements , instead of being based around a set of savings , borrowing and investment products – each with their own sales and servicing characteristics .” HSBC goes as far as predicting a world in which banks could form a part of a wider ecommerce system , integrating with other third-party providers such as utilities to offer advice and recommendations based on existing customer data .

While there is little doubt surrounding the proliferation of digital banking solutions , evidence still suggests that consumers want the ability to interact with a human voice during their finan-

JANUARY 2020