Retail Banking 2020. Evolution or Revolution



According to PwC ‘Powerful forces are reshaping the banking industry. Customer expectations, technological capabilities, regulatory requirements, demographics and economics are together creating an

imperative to change. Banks need to get ahead of these challenges and retool to win in the next era.

Banks must not only execute on today's imperatives, but also radically innovate and transform

themselves for the future'


Check this amazing story:

Anna, 56, boards a high-speed train for her commute to one of the world's emerging

megacities. She settles in and blinks twice, activating the display in her glasses. She is

authenticated by retina scan, and reviews her messages.

A message from her financial adviser notes they sold her holdings from a recent IPO and

transferred the proceeds into a new African high-tech fund. She made this decision after

consulting with her financial adviser and reviewing recommendations from several

independent investor analytics engines she reached through her bank's wealth

management platform.

She then watches a message from the bank's leading education expert, suggesting it is

time to set up a university savings account for her 13-year-old son. The adviser asks

whether Anna expects her son to attend the new flagship online university, or a much

more expensive residential programme overseas. She quickly outlines the estimated

costs and benefits of each, taking into account Anna's age and planned retirement at 70.

She recommends the flagship, and suggests supplementing her son's education with less

expensive summer programmes in Mumbai, San Francisco and Beijing. Anna agrees, and

the adviser seamlessly sets up the savings account and the auto-deposit.

At lunch, Anna browses the local electronicsdisplay, where the latest holovision catches

her eye. A quick scan from her glasses returns customer recommendations, coupons and

financing offers from multiple providers including her own bank (which itself has

instantly reviewed the returns from the scan to ensure their offering is competitive).

She makes her choice and completes the purchase, using a new peer-to-peer lender

that offers a more competitive rate, due to a lower cost structure, thanks to a lack of legacy

infrastructure and a less stringent regulatory regime.

The next day, Anna accepts an invitation for a video conversation with her bank business

adviser. The bank had been monitoring the favourable social media coverage Anna

has been receiving and concluded that her business might need additional services.

The business adviser has already arranged for a commercial estate agent and loan

officer to join them, and they discuss Anna's questions and offer advice on a range of

small business topics. She shares that she is thinking of expanding her business into

additional locations, and they explain the difference between the bank's products and

the government small business facility, which offers less service, but a lower rate of interest

and longer repayment periods. Also, Anna is passionate about environmental protection.

The bank recognises this, and through its own programmes and partnerships, is able

to present an offer where Anna's use of the bank's products results in direct donations to

Anna's favourite charity.

She accepts - happy she has found a bank that really seems to understand her.

Retail Banking

DOES THIS SOUND LIKE YOUR BANK? It doesn't sound like mine! 2020 - Evolution

This amazing study covers two key areas:

·         The impact of global macro trends

·         6 priorities for banking

Send a copy of this book to YOUR bank compliments of PricewaterhouseCoopers.

About PwC:

This PwC report Retail Banking 2020: Evolution or Revolution reveals that more than half (55 per cent) of senior retail bank executives believe non-traditional new players are a threat while 31 per cent believe they present innovative partnership opportunities. 

The findings are based on a survey of 560 financial services executives from leading institutions in 17 countries. It also incorporates insights from PwC's global network and its Project Blue work on the future of financial services. 

According to the report, 54 per cent of executives believe big banks will retain their dominance in 2020 despite the rise of new players. 

Asian Pacific and Emerging Market bankers are most likely (71 per cent and 79 per cent) to consider how global trends (economic growth, regulation, demographic growth and technological changes) will impact the industry in 2020 - compared with the US and Europe, 61 per cent and 67 per cent respectively.

For more info go to


Retail Banking 2020. Evolution or Revolution

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