The study, which interviewed 3,300 financial services companies from 130 countries, highlights how regulatory pressure on banks has tightened asset liability and capital ratio management. Banking executives surveyed predicted an uncertain and troublesome future, with declining revenue pools and an increase in operating costs.
From one generation for the next, we need to learn everything again. generation X uses call centres, generation Y emails, and generation C tweets on social media. Our distribution model is resisting, but for how long?” noted on respondent.
But it will be tough for some banks to change their ways. In its 4,000-year history the banking system has not changed much. Banking began around 2,000 BC when grain was lent to travelling merchants. But it wasn’t until the 14th century that banking as we know it today began to emerge in Italy.“The bank branch started as a distribution point for cash but has morphed into a place for bank products and an advisory space – where the banker knew something you didn’t,” explains Brett King, founder of US-based Movenbank (which has no retail branches) and author of the new book Bank 3.0.“This shifted in the 1980s when telephone banking allowed consumers to call up and do basic transactions outside of the branch. In 2008 in the UK, internet became the preferred channel for day-to-day banking, surpassing the branch. Since then, the shift in banking behaviour has only sped up.”“Banks and building societies who aren’t prioritising mobile technology won’t be able to survive in the coming years,” says Gareth Ellis, at payment systems company, ACI Worldwide. “About 16 per cent of Britons are ‘smartphonatics’ – people who have changed their shopping or banking habits as a result of owning a smartphone.”
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