The pandemic has served as a trigger for bringing about a revolution in the way we bank. The way things are moving it seems that by the end of this decade, banks will be invisible, connected, insights-driven and purposeful. With due emphasis on digitizing personal or professional workflow, tech platforms are slowly replacing physical work stations. Since the new normal poses significant challenges to banks, face to face interactions are becoming a thing of the past. In India, banking is slowly changing from teller machines to ATM cash dispersals. However, taking tokens and waiting in queues is fraught with dangers since social distancing is well-nigh impossible. There are media reports which talk about how bank branches are a high-risk zone for contracting the COVID 19 virus.
According to Forbes magazine: “The future of banking is here as we examine the changes that are expected to play out over the next decade of retail banking. The drivers of the future are evolutions of the past: Some are playing out now; others will be far more prominent by 2025 and table stakes by 2030. In order to compete in a world with increasingly blurred boundaries — where smart devices and platforms such as Google can deliver the banking experience, ride-sharing apps can supply loans, and cars can be distributed ledgers — banks must ruthlessly determine and play to their strengths.
The winds of change are evident because many private banks are busy offering online KYC registration for opening new accounts and offering online fixed deposit options. Who knows what technology has in store for the banking sector, which is the focus on this newsletter.