Traditional banks, as we know them, may disappear as soon as 2025-2030, reports a study by PwC entitled The Shape Future of Banking. Since the barriers to the entry of non-bank entities have declined, we can expect significant changes in banking services and busness models in the sector of tomorrows banks. However, traditional banks may still have an advantage in their strong brands, reputation, experience, and even in regulation. Trust plays a crucial role in finance and the alternative providers of banking services still have a lot to do to build it.
Main findings of the study:
- Banking services will shift from physical distribution closer to the channels controlled by modern technologies.
- Thanks to the technological development, it will be increasingly easier for customers to change banks and banking services providers.
- Brands will play essential roles. A strong brand must represent trust, integrity, safety, and quality for customers.
- Banks may become providers of deposit services below the insured limits or of a narrow range of domestic credit products.
- Regulators and regulatory measures will have to adapt to the changes in the industry as well.
The study is available to read or download at the PwC website here.
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