5 trends in consumer banking


5 trends in consumer banking

Innovating to stay ahead

Executive Summary

The pace of technological innovation has never been greater in the banking industry. Both challenger banks and disaggregated product specialists are eroding the dominance of established banking institutions, and the battleground is the fertile field of new financial technology.


Not a month goes by without predictions of the end of banking as we know it.

Innovation is rapidly altering the financial services landscape, whether driven by large incumbent banks, outright challenger banks, agile financial technology (fintech) firms, or even non-financial technology giants (think Apple Pay, Google Wallet). Are innovative new entrants capturing market share at the cost of incumbents? Jargon is everywhere—‘biometrics,’ ‘wearables,’ ‘gamification’—but what do these words even mean? And what are their impacts?

During this period of rapid change, established incumbent banks have a dual challenge: first, that of responding to ‘point’ areas of innovation—developing new payment channels for example—and secondly, putting in place a bank-wide framework to harness innovation, whether by setting up in-house innovation offices, incubating, or partnering with fintech start-ups. This article focuses on the first challenge—identifying the current banking innovation trends—rather than on how banks are responding to innovation.

Although subjective by nature, this list draws on a database of more than 550 banking innovation case studies, catalogued since 2011. These trends do not aim to capture what has passed, nor is this crystal gazing. We see these developments as being at the brink of mainstream adoption, and they are valuable focus areas over the next twelve to eighteen months.

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Inside magazine issue 10, October 2015

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).

PDF - 8.8 MB
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