Reflecting on Forrester Fintech Predictions for 2017: Part 2

Reflecting on Forrester Fintech Predictions for 2017: Part 2

Xavier Marcillac

VP Sales APAC at Strands

Views 639

Reflecting on Forrester Fintech Predictions for 2017: Part 2

06.02.2017 12:00 pm

In part one of our exploration of Fintech predictions for 2017, we touched on investments in AI, digital transformation driven by operational excellence and other important challenges. However these are far from the only ingredients you'll need to cook up winning digital banking strategies in the year ahead.

Check out the other three Fintech Predictions for 2017!

 

Prediction #4: Consumers will spend 90% of their time on just 5 apps

This is a major threat (or opportunity) for banks in the medium term. Following the WeChat model (where hundreds of millions of Chinese people use a constellation of API-based services right from the WeChat app), won't people start managing their money using WeChat or Facebook or Apple or Amazon, rather than their bank (at least directly)?  What can banks do to keep and win customer relationships in this scenario?

Simply put, banks will need to create experience apps, not only transactional apps. According to Forrester research findings, feelings of accomplishment fuel mobile banking use. This is further evidence that architecting positive emotional experience is important to maintaining an engaged mobile banking audience.

Prediction 5: Leading digital businesses will build automated conversational interfaces

By now, most of the people will have heard of chatbots. 2017 is the beginning of conversational commerce and many companies are starting to build a chatbot themselves. Whilst there has been a surge of interest in the world of automated bots, most will fail or at least won’t see the benefits in the short term because NLU (Natural Language Understanding) technology used is not quite ready yet or the scope of the chatbot application is too broad and not specific enough to address a well-defined business problem.

On the flip side, there are some major positives. Chatbox technology certainly helps control (saving) customer service costs while growing the business, but most importantly it improves the customer experience exactly where and when the customer needs it. Just like Zhi-Ying Ng highlighted - “conversational interface must be married with personality” to better engage with users and ultimately make a business difference.

Simply by looking at the millennial generation, exchanging voice messages instead of texting, it´s obvious that voice is really at the top of interaction stack. While mastering voice recognition is still quite a technical challenge, the FATBAG (Facebook, Amazon, Tencent (WeChat), Baidu, Ant (Alibaba and Alipay), Google), with the permission of Apple Siri and Samsung Viv, are in the race to hold the keys to the user interaction entry point globally.

This massive race will ultimately benefit all companies that will be able to build these conversational interfaces using open source voice understanding and generation technology for their well designed experiences.


Prediction #6: Mobile innovators will “in-source” rather than outsource for agility 

The large majority of mobile-first challenger banks are developing PFM-centric functionalities internally. This is the operating formula to be agile and maintain low costs. But will they all be able to innovate, differentiate and succeed? I don’t think so.

Stay tuned for Part 3 to learn more about the digital banking trends to know in 2017.

This article originally appeared on  blog.strands.com

Latest blogs

n/a n/a

How COVID-19 Is Ushering In a New Era of Cashless Technology

  Image source: https://www.pexels.com/photo/person-shopping-online-3944405/   Cashless technology isn't a completely fresh concept. People have been using credit cards for decades, and the market for fintech services has been Read more »

Jean Shin tyntec

Using WhatsApp for 2FA is the Future of Banking

From user authentication and password resets to transaction verification, two-factor authentication (2FA) offers basic but useful protection for consumers. The 2FA process typically sends an SMS sent to the customer with a one-time password (OTP). Read more »

Amir Ghodrati App Annie

The Role of Fintech Apps in Navigating This Period of Financial Insecurity

Economic instability has been ricocheting throughout the stock market in the wake of the global coronavirus pandemic. Its effects have been felt across all industries, with winners and losers’ across different sectors. So, how has fintech Read more »

n/a n/a

How to Choose a VPN for Digital Privacy & Security

In a world where almost everything is connected, and where hackers and other malicious people are roaming the internet, it is always advisable that you take every precaution that you can to enhance your data security and privacy protections. Using a Read more »

Ben Slater Instaclustr

The Case for Adopting Open Source – Own Rather Than Rent the Foundations of Your Business

For some time open source was seen as something that only the biggest companies could use and play with. But with the modern, increasingly fast business environment, the use cases for open source are in everything and the technology is increasingly Read more »

Related Blogs

Amir Ghodrati App Annie

The Role of Fintech Apps in Navigating This Period of Financial Insecurity

Economic instability has been ricocheting throughout the stock market in the wake of the global coronavirus pandemic. Its effects have been felt across all industries, with winners and losers’ across different sectors. So, how has fintech fared Read more »

Chris Hopwood FS Partnership

How to Grow a Fintech Business – Part 1

I was recently invited to a meeting where the Marketing Director of a fintech company told me how he was going to revolutionise the sector with the launch of their new venture. He explained that they would march through the industry, gaining market Read more »

Leon Muis Yolt

HM Treasury's Relaunch of Independent FinTech Sector Review

We welcome the Treasury’s decision to relaunch an independent review of the UK’s FinTech sector. At the heart of the review should be a desire to evolve the financial services sector and respond to the changes brought on by the COVID-19 pandemic. Read more »

Phil Siarri psiarri.xyz

Fintech: Beyond the Banks vs Startups Paradigm

In the past couple of years, the media has heavily focused on reporting the development of new ventures in the financial technology sphere (''fintech'' as the cool kids like to call it). We have witnessed countless sensational headlines pitting big Read more »

Nóra Bézi Bitrise
Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel