Embracing new forms of technology
Stuart Hulme, director of savings and marketing at Hampshire Trust Bank | 07:27 Wednesday 29th August 2018 | 0
The UK financial services industry, and banking in particular, has undergone radical reform in the last 10 years.
Retail banks have re-purposed themselves to focus on the customer. New and tougher regulations (and regulators) now govern the City of London. Indeed, having worked in banking for over 20 years, I can safely say that today’s industry is unrecognisable when compared to 2008.
The question currently being considered by many market commenters is this: what’s next for banking? It’s certainly an apt and timely question to ask. After all, it was in the autumn of 2008 that the financial crisis really took hold of banking and financial services in the UK. Further change is, however, afoot. Disruptive forces, whether technological or from competitors, are reshaping banking, creating an imperative for further change. Banks of all sizes, including ourselves, will need to decide whether to lead the change or to remain stationary. It’s of course worth noting at this point that the success or otherwise of Open Banking, as well as the outcome of Brexit negotiations, may have some immediate bearing on this imperative.
In the long term, however, banks will still need to rise to the challenge and embrace new technologies, whatever these may be. Amazon, Apple, Google and Facebook, for example, have proved hugely successful because they offer customers a real-time, personalised service. In the last decade, banks have, to their credit, responded to this challenge by investing more in online banking and, for instance, apps for smart phones. Many customers can, at a touch of a button, access their bank statements, send money, request loans and much more.
Put simply, customers now demand real time banking, at their fingertips. However, expect further technological change. Combined with evolving customer behaviour and expectations, banks will need to meet this challenge and, crucially, use digital well. Moreover, fintech firms and large tech companies have started to capture much more of the banking value chain in areas such as payments. Arguably, these new entrants could threaten the dominance of banking but may also force banks to further raise their game. Banks will need to be at the forefront of technology, ensuring that emerging customer needs and lifestyle demands are engrained in every offering. They need to understand what’s possible, where the latest technology innovations are, what systems can deliver them, and what should be pursued.
As a specialist bank, we are constantly looking to evolve in order to meet customer needs. Despite the emergence of new competitors and models, we believe that traditional banking has a strong future so long as banks are prepared to innovate and embrace new forms of technology to meet customer expectations.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
84% would change financial services provider due to poor complaints experience
More than eight out of 10 customers (84%) claim that they would change financial services provider due to a poor complaints experience, according to the latest research...
City of London Group posts £3.6m pre-tax loss after absorbing banking licence costs
City of London Group PLC (COLG) has reported a pre-tax loss of £3.6m for the year ended 31st March 2019 after absorbing £1.7m of costs associated with applying for a UK banking licence and acquisition of Acorn to Oaks Financial Services Limited...
Redwood Bank appoints two new BDMs
Redwood Bank has appointed Dan Carter (pictured above, left) and Sue Young (right) as BDMs...
Sainsbury’s Bank updates residential and BTL mortgage ranges
Sainsbury’s Bank has updated its residential and BTL mortgage ranges...
Gatehouse Bank names new HR business partner
Gatehouse Bank has appointed Amy Lloyd (pictured above) as its new HR business partner...
Cynergy Bank aims to grow loan book up to £6bn by 2022
Cynergy Bank plans to grow its loan book to between £5bn-£6bn by 2022...
When uncertainty lends itself to opportunity
With £5.5bn of lending and rates pushed low, the second half of 2018 may have looked like an unusual time to launch a new lender into the bridging market...
Starling Bank partners with CreditLadder
Starling Bank has partnered with rent recognition platform CreditLadder to help its customers improve their credit score and get on the property ladder...
Paragon reduces rates on second charge mortgage range
Paragon has reduced the interest rates on its second charge mortgage products...
Hanley Economic BS launches RIO mortgage range in Scotland
Hanley Economic Building Society has launched its range of retirement interest only (RIO) mortgages in Scotland following feedback from its Scottish intermediary partners...
allpay.cards named as card provider for new mobile business banking service
Card manufacturer and bureau allpay.cards has revealed that it will provide the cards for the new Amaiz mobile business banking service...