The trends listed below are identified from a short to medium term perspective. We also try to identify the key drivers for some of these trends i.e. whether they are demand driven (consumer needs) or regulatory compulsions or just proactive investments in technology for future growth.
1. Convergence of Mobile and Online platforms
As of today, the various platforms of a bank often compete with each other resulting in a competitor
taking away the consumer. A single, unified platform should be the identity of a bank. This also alleviates
fears of theft from the minds of the consumer as it helps identify the authentic platform of the bank
easy (unlike today, where a regular online user may find the mobile platform strikingly different).
2. Use of Web 2.0 and Social Media for customer interaction
It is imperative for banks to have a social presence. Social media is a great platform to interact with the
consumers directly. It not only helps banks avert the danger of an incident going viral by interacting and
solving the clients issues, but also provides a very good opportunity to then highlight publicly the client
focus of the bank. Social networks also provide an opportunity to connect with potential customers,
with an aggressive campaign banks can attract these to be customers to their page and offer deals on
their products and services.
This is also a very good place for community initiatives and to highlight the corporate social
responsibility related activities that a bank does. It helps in building the brand in a big way. And as the
action here is instant, consumers are likely to share their good experiences with online friends, starting
free viral marketing campaigns for the bank.
3. Use of Big Data for understanding the consumer
The key to a banks success often depends on the relationships it is able to develop with its clients,
which comes down to its ability to provide each client a customized solution. With transactions
becoming intelligent (capturing data through cards), banks now have enormous amount of data about
their clients. The challenge is to capture information out of this data.
4. Branch less Banking
Branch less banking is about to give banks the next level of scale. Banks can not only reach out to a large
portion of population which currently has no access to formal banking services, but can also increase the
frequency of usage of current customers who maintain a savings account but prefer to use it sparingly
because of the difficulties associated with branch based transactions like time and travel expenses.
5. Branch as a Service Station
A branch can function as a one stop full financial services shop, providing banking, insurance, mutual
funds all under the same roof. Banks and other financial service providers can actually collaborate and
coexist under the same roof. This can help a lot of financial service providers cut costs and increase their
Consumers demand for banking services to be available anytime, anywhere and on any device isnt just
an opportunity for banks, it also comes with a big threat, the threat of a breach in security, and a whole
new breed of bank robbers can emerge. Multiple devices and multiple apps on those devices means any
single loophole anywhere in the entire information chain can be disastrous for the bank and its
For a more detailed view on the above, please read my whitepaper at
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