Ahead of Harnessing Fintech Innovation in Retail Banking 2017 we spoke to Principal Banking Analyst Daoud Fakhri about what he’s looking forward to at the event, and how fintech will shape the future of the industry.
What is happening within banking at the moment that excites you?
Firstly, we’re seeing a lot of new providers enter the market with grand ambitions to transform the provision of banking services and improve consumer outcomes. Not all of them will survive in the longer term, but those that offer something new, for example by focusing on underserved segments such as recent migrants or by delivering data-driven contextual advice and insight, will stand a fighting chance.
Secondly, the open banking revolution – heralded by the coming of PSD2 in January 2018 – has the potential to transform banking. With banks forced to open up access to customer data to third parties, we could see a proliferation of innovative new services from fintechs and other competitors.
Which presentation are you most looking forward to?
I’m interested in hearing what Tom Dunbar of Payments UK has to say about the opportunities for competition and innovation arising from PSD2 and open banking, as well as dealing with implementation and the setting of standards.
Too often there can be a tendency to focus on the most exciting benefits of open banking while glossing over the practical challenges associated with implementation, so it will be good to hear a rounded view of both the opportunities and the challenges in this area.
How do you think innovation will shape the banking industry in the next five years?
The leveraging of customer data will be at the heart of innovation in banking. Providers will be able to identify inefficiencies and shortcomings in how customers manage their finances, and offer remedial advice exactly when it is most needed. The use of AI will enable banks to go beyond this and automate decisions on behalf of their customers to maximize outcomes.
It is often said that data is the most valuable asset a bank owns, and the banks that excel at using this data to help guide their customers through their financial journeys will be the ones that prosper.
Focused on equipping banks with the tools necessary to create a sustainable innovation strategy, Harnessing Fintech Innovation in Retail Banking 2017 will be packed with interactive and thought-provoking sessions. The two-day event will cover topics such as nurturing a culture of innovation, best practices for integrating with fintech, and the opportunity PSD2 offers to both banks and fintechs. Delegates will also have the opportunity to network with representatives from the top European banks and regulators. You can register for the event here.
By Daoud Fakhri, Principal Retail Banking Analyst