Whitepaper: Global Banking Innovation
/Financial services across the world have been witnessing significant turmoil over the past few years. There has been a considerable shift in not only how consumers interact and expect banking services but also in how that experience is being delivered.
The advent of the mobile phone changed the global perception of banking, particularly in emerging economies in Asia and Africa, where the unbanked population far outnumbers the banked populace. With African telcos launching the continent’s first SMS banking, mobile financing, and microfinancing services; it can be said that true banking innovation emerged in these markets out of necessity rather than choice.
Moving forward a few years, financial innovation seems to have found its own hotspots across the world. With digital banking leading the fintech revolution in Latin America and Europe, payment platforms are changing economies in India and China. Meanwhile, North America is experiencing holistic innovation, ranging from disruption in investing & trading, payments, digital banking and cryptocurrencies.
The millennial generation is not very forgiving when it comes to traditional banking services. Technology across industries have drastically increased consumer expectations, resulting in younger users constantly looking to revamp, refresh and digitize their interactions, especially in the financial space. A 2018 study found that 70% of millennials use their mobile phone to pay for products and services, while 40% use universal payment apps such as Google Pay and Apple Pay.
With the global fintech market to be valued at US$ 305 billion by 2023, it is important to understand the what behind banking innovation. It is crucial to get a broader perspective on where the industry is headed to better understand what can be done to embrace the impending upheaval of global financial services.