There’s no doubt that the expansion of tech giants into financial services will impact the future of retail banking, especially because they offer many services for free to make buying and selling easier on their platforms. But looking ahead, how will this shape the functions and activities of retail banks?

The retail bank of the future may have three roles

If tech giants give away payments, lending and credit for free to drive more traction through their platforms, how will banks make money? That’s the million dollar question Chris Skinner ponders on his blog.

He thinks in the future retail banks will have three key roles: being a secure vault for data that customers consider valuable, becoming a curator of apps, APIs and analytics which deliver the best possible customer experiences, and working as life events managers to make customers’ life easier.

Choose a model for open platform banking

Open APIs are turning the financial services industry upside down, creating challenges and opportunities along the way. There are four models for banks to choose from when developing an open banking platform strategy, Accenture says. They can go with propriety platforms, which have one sponsor and one provider, and use open APIs to make data accessible to developers.

They can also opt for licensing platforms with one sponsor and many providers. And of course, there are the rare joint venture platforms that allow several sponsors to control a single interface, and shared platforms (yet to be seen in banking) with multiple providers and no single parties controlling development.

Use case: save when you run, tweet or shiver

Have trouble saving money? Gone are the days. ING Bank has just introduced a new service in Australia that lets customers set automatic savings triggers linked to everyday life events. For example, they can put USD 20 towards a tropical holiday every time the temperature drops below 19 °C or save USD 5 for running shoes every time they reach a daily exercise goal.

Funds will automatically transfer from a regular account into a savings account every time a particular occasion or activity of the customer’s choice happens. The new service is based on technology company IFTTT’s solution which connects 600 apps and devices to create new customer experiences.

How Chase built a digital banking brand in-house

Building a digital-only banking brand from the inside sounds pretty much like a non-starter. But a team of 50 employees at JPMorgan Chase is trying to do just that with a digital mobile banking app, Finn, which is already in beta.

Finn offers features that let customers who want more control over they finances save money. Emotion is also part of the user experience. Customers can report if certain purchases make them happy or sad, and the app will provide them with a report that tracks their sentiments.


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