The financial landscape has changed considerably, forcing traditional monetary institutions to rethink how they do business. Regulations are getting tighter with every data breach, and customer’s expectations are higher than ever. That said, these are the biggest banking industry challenges in 2020.
1. Increasing Competition
A few years ago, nobody thought neo-banks would shake up the entire banking industry as they have. Mobile banks allow access to the full range of services 24/7, making them attractive to the younger generation.
2. Rising Customer Expectations
People have developed an enormous appetite for personalization and convenience over the last couple of years. Nobody wants to stand in line waiting to access services in a bank when they can chat with support on social media or retrieve information from their app. Traditional banks have responded to this trend by cross-training their employees to make them versatile, as seen on https://www.fgib.com/
Banking regulations are on the rise, requiring financial services to spend a lot of money on compliance. When you factor in other costs such as rent, salaries, and other expenses, traditional banks are at a disadvantage. Most FinTechs don’t have high overhead costs, which explains why they offer competitive rates.
There’s no doubt the banking sector is undergoing radical changes. However, that has not rubbed the industry in the wrong way. It is a move in the right direction as stakeholders work overtime to deliver the best financial services possible.