Top Trends in Retail Banking 2014: Strategy Being Reshaped by Technology

by Daniel Latimore, February 28, 2014
Industry Trends
Global

Abstract

Celent highlights 10 trends that bank executives and their ecosystem partners should monitor and act on in 2014.

In the report Top Trends in Retail Banking 2014: Strategy Being Reshaped by Technology, Celent examines the key trends that bankers and their partners should be watching in 2014. Business leaders as well as technologists must be conversant with key technology trends shaping the industry in order to position themselves for success.

Corporate strategy used to drive technology: most firms defined a value proposition and then decided which technological tools they needed to execute. That was certainly the case for banks. Times have changed, however; challenged by entrants and driven by the demands of tech-savvy customers, technology imperatives are shaping strategy in new and unprecedented ways. Celent highlights retail banking trends in the context of three overall themes driving banking technology:

  • Digital and Omnichannel
  • Innovation and Emerging Technologies
  • Legacy and Ecosystem Transformation

“The banking industry is undergoing profound transformation, driven by technology advances, changing customer behavior, and a rapidly shifting business model,” says Dan Latimore, Senior Vice President of Celent’s Banking Group. “We are at the point where several long-term trends have been supercharged by technology that’s advanced enough to make activities that seemed like science fiction five years ago a reality today.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

Top Trends

3

 

Digital and Omnichannel

3

 

Building Omnichannel Delivery

3

 

Optimizing the Branch Portfolio

4

 

Moving from Mobile Commerce to Mobile Payments

6

 

Innovation and Emerging Technologies

10

 

Creating Value-Added Services

10

 

Putting Customers First

11

 

Addressing the Potential of Big Data

12

 

Legacy and Ecosystem Transformation

15

 

Securing the Bank

16

 

Complying with Regulations

16

 

Replacing the Core Outside the Big Four (US)

17

 

Partnering and Componentizing

19

 

The Dogs That Haven’t Barked (Overrated Trends)

21

Path Forward: Change Business Model / Ecosystem Role

22

Leveraging Celent’s Expertise

24

 

Support for Financial Institutions

24

 

Support for Vendors

24

Related Celent Research

25

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