9 May 2022 

Written by Hugo Lampbrechts - School of Investment & Banking: Lecturer

Developments in technology have made it possible for many new market entrants to offer banking services, and FinTech companies have become a strong source of competition for the incumbent banks. This increased level of competition has generated interest in the future of banking.

The traditional banks have shown that they are not powerless. These banks are changing into technology companies as they become reliant on big data analytics to customise offerings for their customers – who are demanding relevant solutions that will assist in achieving their life goals, such as their financial health.

Most banks now offer non-traditional banking products and services as part of the customer journey.  This is achieved through open platform banking and the creation of ecosystems through which banks can offer customers an array of relevant products and services.

For instance, the South African Reserve Bank is developing a system that will enable international settlement using central bank digital currencies, which highlights their commitment to reaping the benefits of new technologies.

The future of banking is here, and the real winners are the customers. They will experience improved levels of customer service, greater efficiency and more relevant solutions to meet their needs.