Principal Analyst, Retail Banking
Daoud is well-versed in retail banking issues ranging from the prospects for new and non-traditional entrants in the sector to the future of branch banking, developments in online and mobile banking, and the vexed issue of consumer trust.
Which areas of financial services are you most interested in and why?
I am intrigued by the possibilities that will open up in financial services as a result of the introduction of open banking based upon open APIs. In the UK, there is a lot of behind-the-scenes work being done on agreeing standards and protocols for an open banking standard, and this should come to fruition in early 2018. This has huge potential to transform the delivery of financial services to consumers, as banks will no longer be able to monopolize ownership of customer data. One benefit may be the emergence of a new generation of account aggregators that will give consumers insight that is based upon a truly holistic view of their finances. Another consequence is that many banks will transform themselves into marketplaces, where consumers can choose from a wide range of third-party services from within their online and mobile banking environments.
What do you think will be the hottest trend in fintech in 2017?
There is a lot of excitement around artificial intelligence and how banks will harness its capabilities to improve the value and quality of the insight they provide to their customers. The most obvious customer application of this rapidly advancing technology is the chatbot, and there will be a big increase in the number of such services, from both banks and third parties, over the next 12 months. With mobile banking seemingly peaking in terms of usage, chatbots will provide banks with a new way to re-engage with their customers. I’m especially looking forward to the launch of Erica, Bank of America’s chatbot, later this year, as I was very impressed with its initial demonstration last October.
Which demo are you looking forward to in particular and why?
Credit is the lifeblood of every advanced economy, and anything that can either improve the availability of credit or reduce the risks associated with lending can only be a good thing. FinTecSystems will be presenting RISK, a product that gives lenders the ability to conduct realtime credit checks on borrowers by linking to their bank accounts via an API and analyzing this data to identify all incomes and expenditures, together with details of their existing use of credit. Borrowers no longer need to supply financial documents, which improves the user experience and reduces the risk of fraud, while lenders benefit from faster processing and less need for human intervention. Overall, RISK makes it easier for non-bank providers to make loans, which will benefit the marketplace.
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