Last Updated on Apr 7, 2020 by James W
In the past, banking seemed to cater to that of big borrowers only as ordinary people could easily have their own savings account, but they had to have high credit scores in order to borrow money. Who could have imagined that online personal loans for people with bad credit scores would have existed today? This is why there are lots of online surveys today that are created in order to predict the future of banking.
Most of these surveys are very specific; although general predictions about the future of banking and the industry as a whole to see what banking will evolve into.
Today, we will look at seven predictions of banking to see what the future holds. Let’s get started!
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- Competition Becomes Tougher
Competition already exists today in every industry. In banking, we can see more players today than several years ago.
Although monopolies still exist, they will eventually die out like the dinosaurs because more and more new banks are being established every year.
- Banks Will Become Much More Fragmented
A few decades ago foreign exchange trading and remittance services were offered by banks only.
Nowadays, there are a lot of independent forex brokers we can find if you wish buy or sell currencies. Moreover, remittance services don’t have to be done by banks alone.
- Banks Will Become More Specialized
We know that banks can offer us different services and packages. If you go to a bank, you can choose which type of product you really need.
However, you will notice nowadays that banks are becoming more specialized. There are investment banks, retail banks, commercial banks, savings banks, online banks, and central banks. In the future, some more specialized banks will be added.
- Banks Will Continue to Become Dominant
Some analysts say that banks will become weak in the future as technology democratizes their exclusive services. However, this seems to have no basis as banks continue to be of importance, especially in mobile banking.
In addition, banks with established names will continue to dominate the industry without monopolizing it because people will always choose a bank with an established name amidst the rising threat of cyber attacks.
- Banks Will Diversify
Banks will not only specialize in a narrow niche market, but will also diversify their products to the point they will be offering non-bank products and services.
There will be banks offering travel and tour services, too. Some online banks may also offer antivirus programs that will protect their customers. Moreover, it will no longer be a surprise to see an online bank with online shops.
- Banks Will Become More Customer-Oriented
In the past banks dictate everything; however, nowadays, customers can lead banks to produce some packages.
In the future, it is likely that banks will be operating based on customized requests by customers. Customers will be able to design a loan package suitable for their special needs.
- Banks Will Be Controlled by the Public
Banks will need to grow in order to survive. As a result, more and more IPO’s will be offered to the public until the majority stockholders will become the individual shareholders.
Nobody knows the future, yet we have clues based upon current trends. The use of predictive analytics may also help us determine the future direction of every industry, especially of banking industry.
Nevertheless, anything can happen along the way. What’s important is that we are aware of every possibility, so we can prepare for it ahead of time.