The ‘faceless’ tomorrow of financial services.
As technology slowly consumes more and more of our lives each day, how much human communication will be loss in the process? KPMG has recently released a document introducing their view on banking in 2030 highlighting an Enlightened Virtual Assistant (EVA) who will be the next level on from the likes of Siri and Cortana.
“In an example of a day with EVA, the assistant approaches the customer having accessed its payment data and noticed an increase in spending on junk food. Coupling this with health data gathered from the customer's wearable device, EVA suggests a yoga class and then books and pays for it.”
Taken from FinExtra: The bank of the future will be invisible - KPMG
Many new companies focus more on the ‘tech’ side of the financial services industry, as they believe in challenging banks and other financial institutions by providing better products and services developed through the use of technology.
Take a look at some of the new fintech companies in the market and you will clearly see that they are simplifying their services and making in accessible through the internet and apps. Gone are the days where you had to make an appointment with your bank or financial advisor a week in advance to talk about your financials/investments. Now it is as easy as logging into your account online or through an app to have full control over everything.
Challenger banks such as Monzo (formerly Mondo), Atom Bank and Starling Bank are all controlled through an app on your phone. They provide you with split second updates every time you use your debit card, allowing you to closely monitor your spending. But what they don’t have are branches you can walk into and speak to a member of staff when you have a concern.
Robo-advisors or digital investment management has also been on the rise recently with the likes of Nutmeg, Money Farm and Wealthify. They are increasingly popular as they mainly require individuals to set investment and risk limits before allowing the ‘algorithm’ to do the rest of the selection work. It has become an easier and cost efficient way to invest in bonds, stocks and shares without the need to hire an individual financial advisor.
And of course we can’t not mention peer-to-peer (P2P) lending. With the global P2P market growing by 271% in the past year, it is becoming a real contender in the financial services industry. Platforms such as Relendex directly connect borrowers and lenders providing better rates to both parties by cutting out the intermediary. Lenders have full control over where their money is invested in from their dashboard with ease and convenience. While it is still a ‘faceless’ transaction, there is still always the option to call or visit our office if there is anything lenders or borrowers wish to discuss.
While using fintech still poses an element of risk (although mitigated by FCA regulation), it does bring about a whole host of other benefits. Ultimately customers are looking for a way forward that is easy, accessible and possibly more rewarding than traditional people facing institutions. The main question is whether banks really are ready to turn faceless as per KPMG’s document indicates or will the emerging fintech sector have the upper hand in capturing the finances of the world.
