Non-traditional players are leveraging technologies to offer speed and convenience. For instance, a financial startup can use online systems and data analytics to process numerous loan applications within 10 minutes.
The emergence of digital banks is creating new competition in the industry. Digital banks offer consumers the likes of mobile payments, e-wallets and many more.
Social media platforms and peer influence allow customers to avoid more direct selling approaches typically used by banks.
Consumers are now exploring more options than before, with less loyalty towards their banks. Digital banks are able to provide access to a global network of services without owning a single office branch.
Their applications are built into the cloud environment which offers speed, agility and the ability to support new services. What would take a bank six months to develop digital banks could develop and offer - within several days.
This cost advantage can help digital banks to become more competitive with their offerings. The survival of retail banking will critically rely on how they react positively to all these new and fast changing dynamics.
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