The digital age has influenced the banking industry significantly: Customers have become more demanding and more technologically savvy. Banks have had to up their games to meet customers’ expectations. But given where we’ve been, there’s some predictability to where we’re headed. Even without crystal balls or Ouija Boards, we can be sure keeping up with growing consumer sophistication will be a continuous process. The industry will continue to change in other ways in the coming years. And one of the means by which it will keep up with that change is data analytics.
As of 2014, the data analytics market is estimated at $16.1 billion, according to Forbes. This growth is attributable, at least in part, to the fact that data analytics has become a primary development focus for so many companies. Given that, we imagine the banking industry will change in the following ways in the coming years:
- Data analytics will become a commodity. An analytics platform will be an entry card, rather than a competitive advantage — a requirement to remaining profitable and relevant. This will mean significant attention will be paid to and investments made in software, cloud technologies, data storage capabilities, and organizational changes.
- Most customers will interact with banks digitally. Banking services will have to be available on mobile and internet devices, require smooth, user-friendly platforms.
- A 360° view of the customer will be needed to ensure #1 and #2 go smoothly. To be efficient, banks will have to make sure customer information is available and easy to access for employees who connect to customers online.
- All processes within the bank will have to be streamlined. That streamlining will require strategic and cultural changes.
- Security will become increasingly important to prevent data breaches at the hands of hackers and others.
With new technologies developing daily, and new regulations and customer requirements popping up even more quickly, it doesn’t take clairvoyance to see what’s coming. Banks will need to adjust their priorities and their budgets to accommodate new hardware, new software, and new processes.