Consumers’ surprising views on the future of banking

Judging by responses to a new study, the battle for payments is over (tech wins), branches will become few and far between, and mobile rules. In addition, consumers would welcome personalized advice and security-related products. For now, financial institutions have a clear edge in trust over fintech providers, but will they use it?

The usual view of the future of banking comes from industry observers and key players within the industry, who represent important viewpoints, to be sure. Yet consumers deal with banking issues frequently, if not daily. Banking is an essential and integral part of their lives.

What do consumers think about the future of the industry?

Rapidly changing consumer habits are one of the main forces behind the sweeping upheaval of the status quo in banking. MX, the digital transformation platform, conducted two consumer surveys in late 2019, each one generating just over 1,000 responses. These were distilled into two reports: The Ultimate Guide to Digital Transformation and The Ultimate Guide to the Future of Banking. The latter in particular offers much data on how consumers see banking changing, along with how they currently conduct their banking activities. The firm also offers some practical advice for digital transformation, summarized later in this article.

As MX states, “two deep currents” are driving changes within the banking industry: More choice and less friction. Both are inseparably intertwined. Any consumer with access to the internet can search for “home loan rates” or “high-interest savings.” They can have hundreds of options available instantly — not only to peruse passively, but to actively engage with, in many cases, from their digital device.

 

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