This year's theme of the fourth Global Banking Retail Report is "Symbiosis: Your bank has your trust. Can fintech make you love it?" and it explores what the future of retail banking will look like by 2020.
The Economist Intelligence Unit, on behalf of Temenos, surveyed 200 global banking executives to investigate the challenges retail banks face in the years to 2020 and how they are responding.
Some key findings:
- The regulators will decide. Capital and compliance will shape incumbents and newcomers alike. Domestic regulators warn fintechs not to expect an easy ride.
- Into the unknown. American banks worry about regulation the most, despite a promised rollback. European policy direction is more certain, yet onerous. Geopolitics do not help.
- Resistance is futile. The EU’s Second Payment Services Directive and open architecture are the game changers. Banks may lose their customers’ loyalty, fintechs could hit compliance barriers. Both must collaborate to survive.
- Complacency is not a virtue. Fear of peer-to-peer lenders and robo-advice may have peaked. Non-banks could still steal deposit and lending business—and profit—unless banks improve the customer experience.
- No cash, no cheques. If they are smart, banks may still win the war to build truly universal digital networks.
