Ahead of Money20/20 we spoke to Principal Banking Analyst Daoud Fakhri about what he’s looking forward to at the event, and how technology is driving innovation in the provision of banking services.
Which areas of financial services are you most interested in and why?
I am interested in the emergence of new tools and technologies that will helps banks and other financial providers re-engage with their customers and recapture the kinds of relationships that used to exist. Technology, whether in the form of ATMs or digital banking, has undoubtedly led to improvements in efficiency and convenience, but this has often been achieved at the cost of depersonalized relationships. However, ongoing advances in areas such as data analytics and artificial intelligence are helping to combat this trend and enable banks to offer the kind of individually tailored service that existed in the days when local bank managers knew all their customers by name.
What do you think will be the hottest trends in banking in 2018?
Artificial intelligence is generating a lot of excitement in banking right now, and will have a major impact upon the provision of financial services. Behind the scenes, for example, banks will be able to risk assess loan applicants in a far more sophisticated way than before. By examining thousands of data points from a wide variety of sources – including social media and online histories, as well as traditional financial metrics – banks will be able to reduce risk while simultaneously widening access to credit among the underbanked.
Another key factor is the advent of open banking, scheduled to start in the UK and the EU in January 2018. Banks will have to share access to customer data with third parties, and this will kick-start the market for account aggregators and chatbot-based financial assistants. These will be able to analyze their users’ entire financial situations and offer them fully-informed advice and recommendations.
Which sessions are you most looking forward to?
There are several interesting sessions that are devoted to transformation in retail banking. New Research on the Financial Habits of Millennials: Not What You Expect promises to reveal some fascinating insights about this much-coveted generation of youthful consumers that banks must win over in order to secure their long-term future. Meanwhile Payments in the Middle: Why the Checking Account is No Longer the Core Banking Product will discuss how alternative third-party services are encroaching on territory that has traditionally been the preserve of current accounts, and what banks can do to respond.
By Daoud Fakhri, Prinicipal Retail Banking Analyst