You are a bank executive. Imagine that you are competing against a truly global, multi-service, low-cost, digital bank: customers accessing their accounts through their mobile Executive Summary phones, paying with a tap on their wearables, sweeping savings to an ETF portfolio A glimpse of what is to come The financial services industry has seen In our latest Global CEO Survey, across all Let’s say you are a bank executive. Imagine drastic technology-led changes over the past sectors business leaders told us the speed of that you are competing against a truly few years. Many executives look to their technological change is one of their biggest global, multi-service, low-cost, digital bank: IT departments to improve efficiency and concerns. In fact, in financial services, 70% customers accessing their accounts through facilitate game-changing innovation – while of the leaders told us the speed of change in 6 their mobile phones, paying with a tap on somehow also lowering costs and continuing technology was a concern. One factor is that their wearables, sweeping savings to an to support legacy systems. Meanwhile, the time it takes to go from breakthrough ETF portfolio (designed by an AI (artificial FinTech start-ups are encroaching upon technology to mass-market application intelligence) engine based on their savings established markets, leading with customer- is collapsing. For example, in the United goals and risk appetite profile) offering friendly solutions developed from the ground States, it took the telephone 76 years to be no-fee, cross-border payments. Imagine if up and unencumbered by legacy systems. adopted by half the population. By contrast, you faced a competitor bank like this, with Customers have had their expectations set the smartphone did it in under ten years. We a low and nimble footprint, prototyping by other industries; they are now demanding are now watching blockchain move from a new services quickly, managing regulatory better services, seamless experiences notebook sketch to an established technology compliance transparently, using an AI system regardless of channel, and more value for in a tiny fraction of the time it took for the to limit fraud losses, and hedging currency their money. Regulators demand more from Internet to be accepted as a standard tool. risk using cryptocurrencies. the industry too, and have started to adopt Indeed, technology-driven change is so new technologies that will revolutionise their pervasive that no financial institution is This competitor does not exist today. But in ability to collect and analyse information. immune. In Section 2, we address how these the next few years, it is a very real possibility. And the pace of change shows no signs of and other global megatrends are affecting Now what? slowing. the financial services industry, with a particular focus on the IT department. € ource: ‚wƒ’s 1…th †nnual 1…th †nnual ‡lobal ƒˆ‰ urve Š ‹an 21€ PwC inancial ervices echnolog 22 and e ond 5
Financial Services Technology 2020 and Beyond PwC Page 4 Page 6