Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


Chris Mills CTO EMEA, Pivotal

It is hard to look at any industry and not see it experiencing an ‘Uber-moment’. As the headline for a recent report, the World Economic Forum hit the nail on the head when it reviewed the impact on the largest finance sector companies under pressure from the rapid growth of the ‘fintech’ entrants – typically from Silicon Valley – fast, nimble, and ready for a fight. With these new players arguably better equipped to capitalise on the growing mobile trend, traditional banks are being forced to re-evaluate their business models to survive.

For those struggling to adapt to the digital revolution, the future looks ominous. Nearly 500 bank branches disappeared in 2014 and according to lobby group, the Campaign for Community Banking Services (CCBS), that figure is set to rise this year as consumers increasingly turn to online and apps-based banking. Many millennials haven’t ever ventured into a physical branch on the high street; and if this trend continues, could we face a future without retail banking as we know it?

The Silicon Valley effect

There’s no doubt that digital transformation in financial services is being aggressively driven forward by advances in mobile banking. With 36 percent of British consumers using a smartphone to access banking services in the last month alone, banks are ploughing considerable investment into mobile-led capabilities.

On top of this, we’re seeing digital-only challenger brands, like Atom Bank, burst on to the scene, as well as tech giants such as Apple, march towards their own financial services take over with new services like Apple Pay. Without the burden of legacy IT infrastructure, and typically boasting higher consumer trust than traditional banks, these players are tapping directly into what the market wants – instant, easy and seamless payments.

But retail banking is not at risk of being totally cannibalised by its Silicon Valley rivals. Instead, digital services should complement traditional services to enable the banks to offer broader services and benefit from further data insights on their customer’s preferences and areas of engagement.

Here therefore, are some key considerations for financial services organisations looking to remain agile in the face of competition and better respond to millennials’ needs as digital-first bankers.

Get to market fast: Product and app development can’t take months of testing and approval. The time between an initial spark of an idea through to hitting the market needs to be as short as possible. With increasing competitive pressure from emerging niche players and higher expectations from consumers for immediate services, banks are forced to dramatically improve their delivery time.This is where being Cloud Native comes in, providing developers with a continuously available environment in which to build, test and deploy apps, enabling them to speed up their delivery time and get to market quicker.

Revitalise software development skills in-house: As the old adage goes, give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. To truly capitalise on the digital era, internal development teams within the banking sector need to be equipped with the skills they need to develop apps-based services themselves. While traditionally, the majority of software development might have been outsourced to third parties, it is far more beneficial to bring in a partner who can work closely with the team and teach them how to build and adapt mobile banking apps in-house.

Reiterate software through data-driven insights: Of course, it’s not enough to build an app once and hope for the best. Apps need to be constantly updated to reflect the rapid pace of change in the digital era. To ensure the upgrades are in line with consumer demands, banks need to tap into the vast data sets that tell them how it’s being used, how their customer preferences are changing and adapt their services to meet this. Mobile technology enables the banks to capture user behaviour, needs and preferences alongside new data streams, such as location. Armed with this insight, banks can ensure they’re working to a customer-led strategy, providing services that there is a genuine desire for.

Mobile-led, security-first: Consumers are increasingly demanding immediate online experiences, particularly on mobile devices, where there is an absolute expectation of speed and responsiveness. Faced with this challenge, banks need to perform a careful balancing act between providing the functionality to enable quick transactions with authentication assurance that meets security regulations. While little vulnerability in platform security has so far been unearthed by banking malware, there is a risk that as mobile becomes the primary channel for financial services, security threats will increase. In response, banks need to make investments to both protect themselves against the current threat landscape and future proof their infrastructure to combat risks as and when they materialise.

For the retail banking sector, it’s all about adapting to survive. Consumers are craving a more personalised, interactive experience with every kind of business – from retailers through to restaurants, entertainment and banks. Failure to drive transformative change now and use data analytics to gain customer insights will surely put the traditional retail banks at risk. You only have to look at businesses like Blockbuster or Borders to see that those that rest on their laurels as market leaders and don’t adapt to future market demands are unlikely to survive in this fast-paced digital world.