What the future of retail banking looks like
- Retail banks are making inroads in the Banking-as-a-Service (BaaS) space.
- Many US execs working at financial services, fintech, and technology companies believe BaaS has the potential to transform payments.
- Do you work in the Banking industry? Get business insights on the latest tech innovations, market trends, and your competitors with data-driven research.
Technology geared toward improving retail banks’ operational efficiency is positively impacting the market. According to Insider Intelligence, 39% of retail banking executives say that reducing costs is where technology has the greatest impact, compared to only 24% who say it’s improving customer experience.
Retail banks are also launching platforms in the Banking-as-a-Service (BaaS) space to remain competitive. For example, UK neobank Starling used to exclusively offer business-to-consumer (B2C) retail banking services; but, after launching a BaaS platform, Starling diversified its product and revenue streams, helping it remain relevant in the neobank space.
BaaS has the potential to significantly transform the payments space. In fact, 41% of US executives in financial services, fintech, and technology companies said so, per an August 2020 data from Wex.
Meanwhile, mobile banking has solidified its place as a must-have feature for financial institutions to remain competitive, particularly among digitally-savvy millennials and Gen Zers. In fact, over 45% of respondents to Insider Intelligence’s fourth annual Mobile Banking Competitive Edge Study identify mobile as a top-three factor that determines their choice of FI.
More to Learn
Interested in learning more about the banking space? Here are some related reports that might interest you:
- The Rise of Banking-as-a-Service, which looks at five major BaaS providers, ranging from fintechs to 20-year-old legacy providers that we think represent a good cross-section of approaches to offering BaaS.
- AI in Banking, which identifies the most meaningful AI applications across banks’ front and middle offices.
- The Global Neobanks Report, which explores how the neobank market has grown rapidly, and what’s in store as the industry pivots from hyper-growth to sustainability. Learn more about the financial services industry.
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