Banking 2025: Industry Experts Map the Path Forward
Dec 3, 2024
auto_awesome
Brett King, a renowned futurist and bestselling author, and Ron Shevlin, Chief Research Officer at Cornerstone Advisors, delve into the evolution of banking amidst fierce fintech competition. They discuss how Banking-as-a-Service and embedded finance are changing consumer relationships with banks. The duo emphasizes the necessity for traditional institutions to innovate and embrace AI to stay relevant. They also explore the importance of cultural shifts in banking and the emerging trust dynamics affecting global financial systems. Insightful predictions for the future of finance abound!
Traditional banks must embrace digital transformation and enhance technical agility to compete with fintechs and meet consumer expectations.
The rise of AI-driven services and changing consumer behavior necessitate a cultural transformation within banks to sustain relevance in 2025 and beyond.
Deep dives
Challenges from Fintech Disruptors
Traditional financial institutions are increasingly pressured by fintech disruptors and big tech companies, as well as evolving regulatory frameworks. The rise of banking-as-a-service platforms and AI-driven solutions is fundamentally transforming the delivery and consumption of financial products. Many legacy banks struggle with outdated infrastructure, which hampers their ability to innovate and compete in a digital-first economy. As customers become more accustomed to fast, tech-driven financial services, the urgency for traditional banks to adapt and streamline their operations intensifies.
The Importance of AI and Technical Agility
The conversation reveals that many bankers feel uneasy about artificial intelligence and its implications for their institutions, particularly concerning technology and cultural shifts. While fintech firms see AI as a powerful opportunity, traditional banks need to enhance their technical agility to keep pace. There is a significant disparity in AI readiness, with only a small number of banks truly prepared to leverage AI effectively. The evolution toward AI-driven services suggests that traditional banks must undergo a cultural transformation to embrace innovation and optimize their operational efficiency.
Consumer Behavior and the New Banking Landscape
As the banking landscape evolves, consumers are transitioning from seeing banks as primary financial institutions to viewing fintechs as their primary service providers. Younger consumers now prioritize functionality, often seeking multiple providers for different financial needs rather than relying on a single institution. This shift highlights the need for traditional banks to reassess their value propositions and customer relationships. To maintain relevance, banks must not only adapt to the new expectations of digital-savvy consumers but also compete with the seamless, integrated experiences offered by fintechs.
The Future of Banking and Revenue Diversification
Financial institutions are urged to reevaluate their revenue models and diversify their income streams to withstand potential disruptions. The approach has become less about traditional accounts and more about offering comprehensive financial management solutions. The discussion emphasizes that many banks have been too focused on maintaining existing revenue sources rather than innovating to meet the changing needs of consumers. By embracing new business models, banks can better position themselves in a rapidly evolving financial ecosystem, balancing the demands of technology, compliance, and consumer expectations.
Traditional financial institutions face mounting pressure from fintech disruptors, big tech companies, and evolving regulatory frameworks. The rise of Banking-as-a-Service (BaaS) platforms, embedded finance solutions, and AI-driven services fundamentally alters how financial products are delivered and consumed.
To explore these changes and better understand how banks and credit unions must prepare, we're joined on the Banking Transformed podcast by two leading voices in banking and fintech evolution: Brett King, renowned futurist and bestselling author, and Ron Shevlin, Chief Research Officer at Cornerstone Advisors.
Together, we discuss how technological advancements, changing consumer behavior, and market forces are reshaping the future of financial services. The conversation covers the evolution of primary banking relationships, the impact of embedded finance, and how traditional institutions can compete in an increasingly digital marketplace.
My guests also offer insights into which organizations are best positioned to succeed in 2025 and beyond.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode