Recent development in AI will dramatically reduce the need for bank staff in roles such as front & back-office functions, trading and risk management.
We will soon see AI driving financial services in customer tailored lending, asset management, and investment & insurance products.
The outlook for banks is complex. On one hand, the growth of new Fintech start-ups, which can provide innovative solutions and modern financial products, will disrupt the traditional banking industry.
On the other hand, increased competition will stimulate existing major banks to adopt new technologies, improve customer experience and open up new revenue streams to meet the future challenges and opportunities. Relying on the existing advantages in capital, data and regulatory support, banks that are well prepared to adapt to the digital revolution will strengthen their positions in the financial industry.
A successful strategy for the preparation of a new banking era lies in greater cooperation with FinTech firms to enhance technology capacity, which can be translated into lower cost, better customer experience, and new income streams.