Fintech News And Insights | Standard Chartered

Embracing disruption: the future of banking

Invisible author — Wed, 07 Nov 2018 15:54:45 +0000

How is AI going to redefine how you manage your wealth? Could chatbots really learn to talk to us as other humans would? Is blockchain the answer to all our transaction efficiency problems? We caught up with our Group Chief Information Officer, Dr Michael Gorriz, to find out how key tech trends are shaping the future of banking.

A new type of chatbot is coming. There are three words that will revolutionise instant chat with institutions: ‘natural language understanding’. While these words might not sound as exciting as buzzwords such as big data, internet of things (IoT) or artificial intelligence (AI), the ability of a computer to understand and respond in the language you use to talk to it will make a big difference. The most well-known application for this is the chatbot, which allows you to text a query to a messaging service and receive a response in the same language you typed it in. Spoken language versions of this technology will ease communication between humans and machines, meaning customers will be able to interact more quickly and efficiently with everyday banking systems.

AI: having a wealth manager at your fingertips. We can use AI to give our customers tailored wealth advice. It could be a simple question of what should I invest in? AI can help by analysing your existing portfolio, the current market trends, and the advice that our wealth management specialists provide – and then combine all this information and give you a personalised recommendation.

Blockchain: the answer to secure, real-time transactions. In the long term, blockchain is going to help make financial systems more efficient. This technology allows the realisation of verifiable, real-time transactions in and across many different areas. If you want, for example, to remit money from one mobile wallet to another in a different country and across different legal entities, blockchain technology allows this transaction to take place in real time.

The future of banking
“If we combine the trust of our customers with the convenience technology brings, we will create the banking of the future.”

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Saving you time: from days to minutes. Across our regions we’re experimenting with new ways of using digital to make banking faster and simpler for our clients and broadening the client segments we can serve across fast growing markets. Being digital allows us to grow quickly in fast growing markets in tandem with client needs, without having to invest in physical branches. In India, we’re now operating real-time onboarding, cutting the process from a couple of days to a couple of minutes. We can bring customers into the bank much more quickly than before, freeing up time to offer our customers a better service. Meanwhile, in Cote d’Ivoire, we’ve gone fully digital and fully mobile. There are 70 services on our app, and with just the tap of a finger, customers can choose the ones that are relevant to them. Being digital also allows us to serve clients who are used to doing everything on their mobile phones and expect banking to be delivered that way. In Hong Kong, we’ve announced that we’ve applied for a virtual banking licence to provide banking services to digitally-savvy clients.

Invent and innovate: the future of banking. For us, what’s most important is to serve clients in the best possible way. Embracing the disruption is essential. We’re working with fintechs, technology firms and industry partners to explore how we can use technology to revolutionise banking services for our clients. Reinventing the future of banking requires understanding that we won’t always have all the answers ourselves. This is just one of the ways that we’re embracing disruption, and it’s an important mindset to have. I truly believe that technology is now the core of banking, because it makes banking better.

Rewiring the DNA in banking

Invisible author — Fri, 02 Nov 2018 11:37:01 +0000

At the start of the year, we launched SC Ventures, a new group designed to promote innovation, partner with and invest in fintechs and rethink business models. We caught up with Alex Manson, Global Head of SC Ventures, to find out why disrupting ourselves is so important for future success.

SC Ventures is about introducing new ways of thinking about banking. By experimenting both internally and externally, we can generate a constant flow of ideas. Internally, this is mainly done through what we like to call our ‘intrapreneurs’; these are colleagues with an idea that could change the Bank – everything from a small efficiency change or a completely new business model. We provide the tools and environment for them to develop, experiment and validate their ideas in our innovation labs, which we call eXellerators. It’s proving successful – we’ve had more than a thousand ideas, and around 20 projects are moving to prototype stage.

We also partner with fintechs to develop products and services that make our clients' lives easier. This typically leads to partnerships being formed and sometimes even investment opportunities. Last but not least, to take our ideas forward, we are very open to experimenting with building new business models or ventures that could potentially disrupt the way we operate today.

To be clear: there is no such thing as innovation for the sake of innovation. Banking is all about serving clients in the way they want to be served. We are transforming the way we work – rewiring the DNA that underpins how we think about banking. Just as our customers are expecting the way they are served to change in the face of technological innovation, our corporate clients are also being disrupted, and they too want to reinvent themselves. We can work with our clients on building new business models and digital solutions, though with a start-up approach one might not expect from a large bank. Sometimes, we bring our fintech partners into this process to tap their technological and human-centred design expertise, but also their agile methods and start-up mindset.

Client co-creation is very important to us. We always want to experiment and learn to solve our clients’ needs, and the solutions we create have the potential to be rolled out across our global footprint, benefitting as many of our clients as possible.

We want to be courageous and empathetic – that’s what I think differentiates SC Ventures from other innovation efforts. As an established player, it takes a lot of courage to potentially cannibalise your own business to experiment, learn and move forward. Empathy plays a big role because we know how hard it is to be a start-up trying to make a breakthrough, just as sometimes it is hard to drive change or set up something that’s never existed before in large organisations.

Fundamentally it’s about people, culture and mindset. At the end of the day, SC Ventures is just a platform and we are only as good as the people who engage with us. We stand for serving clients in the best possible way, with capabilities transformed by innovation and technology evolution, seeing the opportunity to do things differently, collaboratively and more quickly.

Whether you’re interested in developing a career with us, or if you or your business have ideas that could help rewire the DNA of banking, get in touch with us at...

scventures@sc.com

Fintechs and banks can work together to tackle money laundering

Invisible author — Thu, 12 Jul 2018 09:59:45 +0000

Trillions of US dollars are being laundered every year to fund illicit activities such as terrorism and trafficking. Banks need to use their resources and breadth of influence to halt these activities. We're working with Silent Eight, a fintech that uses the power of artificial intelligence to help banks combat money laundering. In the video below, Martin Markiewizc, CEO and co-founder of Silent Eight, explains the importance of such partnerships.

Bridging the gap between fintechs and banks: Jason’s story

Invisible author — Mon, 30 Apr 2018 12:56:05 +0000

Jason recently graduated from the National University of Singapore and is enjoying the opportunity to learn and develop in our Information Technology and Operations team. He is working on a smart wealth management tool called Personalised Investment Ideas, which generates investment ideas for clients based on their individual needs, and is passionate about bridging the gap between fintechs and banks.

Why bitcoin isn’t a real threat to major currencies – any time soon

Madhur Jha — Tue, 24 Apr 2018 10:12:55 +0000

Cryptocurrency bitcoin has rarely been out of the headlines.

First the price highs, then the dramatic decline, and now ongoing volatility caused by concerns over greater regulation.

Bitcoin remains the most popular cryptocurrency by some margin with a market share of around 35 per cent, despite the introduction of around 1,500 others. Although interest in them persists, we do not think cryptocurrencies will rival traditional money any time soon.

In the early years, interest in bitcoin was muted, but this has changed in recent years. The price of bitcoin skyrocketed, reaching a high of nearly USD19,500 in December 2017. Since then, cryptocurrency prices in general have tumbled by around 65 per cent, supporting claims that they had been the centre of possibly the largest speculative bubble since the global financial crisis, although prices have stabilised more recently.

Regulators around the world are taking different approaches to managing the cryptocurrency hype: while China has banned cryptocurrency exchanges and the Reserve Bank of India has recently stopped the transfer of money into bitcoin wallets, a bitcoin futures index has been launched in the US and Japan has accepted bitcoin coin as legal tender.

"A major problem is the anonymity bitcoin provides, which has encouraged its use for illegal activities"

Madhur Jha Head, Thematic Research

A digital token

The advantages of owning cryptocurrencies like bitcoin are generally held to be threefold: firstly, bitcoin has lower transaction times and costs through its peer-to-peer function; secondly, it provides a level of anonymity; and finally, as bitcoin is supposed to have a fixed lifetime supply, it is also seen as a hedge against the sort of hyperinflation that can result from central banks printing too much money.

Despite these advantages, however, we expect bitcoin to remain a digital token, at best, with little potential to rival traditional money or even a commodity like gold. To be accepted as money, bitcoin would have to fulfil three important functions. It would need to act as: 1) a stable and trusted unit of account, 2) a medium of exchange, and 3) a store of value. Bitcoin fails to qualify on most of these parameters.

It is clearly not widely held or exchanged and while it is store of value, recent price movements show just how volatile it is. More importantly, a major problem is the anonymity it provides, coupled with little or no regulation, which has encouraged its use for illegal activities, raising concerns about its trustworthiness. According to recent research by the University of Sydney (Foley et al), almost half of all bitcoin transactions are associated with illegal activity, such as drugs or terrorist financing.

Unstable and risky

The decentralised nature of cryptocurrencies implies that there are few, if any, safety nets for users in the event of a collapse in prices or panic selling, making cryptocurrencies inherently unstable. Traditional currencies, by contrast, have central banks standing ready to stabilise and defend their value, acting as lender-of-last-resort during times of systemic crisis.

Another source of concern for bitcoin is that mining or producing it requires exponentially increasing computing power. According to the head of the IMF, Christine Lagarde, mining bitcoin in 2018 could utilise the same amount of energy as the annual energy consumption of Argentina. This is clearly not sustainable and will pose severe constraints on the usability of bitcoin and other cryptocurrencies.

"While some central banks and regulators are showing initial acceptance of bitcoin, we feel they will become increasingly wary of the risks associated with it"

Madhur Jha Head, Thematic Research

So, if bitcoin can’t rival traditional money, can it rival a commodity like gold? Bitcoin has been called ‘digital gold’ in some quarters. But there is a problem here as well. Gold has the advantage of intrinsic value, but also a long-established tradition of being a safe-haven asset and a hedge against inflation and risk aversion. This in part stems from the multiple uses of gold (the main one being jewellery) that underpins its low correlation with other financial assets. Bitcoin does not have this and so it is hard to classify it as a commodity either.

While some central banks and regulators are showing initial acceptance of bitcoin, we feel they will become increasingly wary of the risks associated with it and other cryptocurrencies. As such, expect higher levels of regulatory oversight in future, which will likely dampen the attractiveness of the current breed of cryptocurrencies.

Even bitcoin, despite being the largest player in the market, might not be able to withstand increased scrutiny, at least not in its current form.

Important disclosures regarding content from Standard Chartered Global Research can be found in the Global Research Terms and Conditions.

Digitising customer care – the call centre of tomorrow

Stuart Beaumont — Thu, 07 Dec 2017 17:20:00 +0000

The rapid advance of technology has created the impression that the entire banking industry will soon be digitised. Yet while much of traditional banking has gone the way of the abacus, we’ve learned something interesting along the way: people still want to speak to people.

When my credit card was rejected recently, my first reaction was to call the bank. My app won’t tell me what the problem is, at least not today. And when it comes to a decision about my own money, that human interaction becomes even more important and reassuring. Not everything will be online and clients don’t want it to be.

"Digital doesn’t mean we don’t want to talk to our clients"

What technology is doing well is building a better picture of who our clients are. Digital is generating massive amounts of data – known as ‘big data’ – and we’re mining it to understand and anticipate the needs of our clients.

Hotbed of digital innovation

If I’m sitting in a contact centre (or call centre), I have a lot more information at my fingertips than I did even a few years ago. So conversations are getting richer – once I unblock your card, I can have a chat with you about how to save for your children’s education, if I see you have a need for it; in other words, it’s less about transactions and more about how the bank can help you achieve your financial goals.

A lot of the data enabling these conversations is coming from the contact centre itself. Long seen as the drab, unglamorous backwater of the banking world, it’s becoming a hotbed of digital innovation, deploying sophisticated technologies such as speech analytics, artificial intelligence and biometrics to improve client interactions. Video banking is bringing clients right into the contact centre, at least virtually. Increasingly, our customer care colleagues are deepening relationships with them.

"Far from making them obsolete, technology is driving the rapidly growing role of contact centres"

That shouldn’t really come as a surprise. Digital doesn’t mean we don’t want to talk to our clients. Actually, we want to spend more time talking with them. As digitisation advances, the number of transactions in branches and in contact centres will decline. But if we know them better, the conversations we do have with our clients will become richer, whether they are face-to-face or digitally enabled. We want to make the most of these opportunities. Otherwise, we run the risk of having a great digital relationship with clients but a weak banking relationship.

So contact centres need to keep innovating. This changes how we recruit, train and manage our people and technology. We’re also rethinking how to design and manage contact centres themselves as they move to centre stage in managing client experience. Far from making them obsolete, technology is driving the rapidly growing role of contact centres.

A version of this article first appeared in Asian Banking & Finance in November 2017.

My fintech story: I want to transform financial services

Invisible author — Wed, 18 Oct 2017 08:00:27 +0000

Ned Philips, founder and CEO of fintech firm Bambu, is a perfect example of how age is just a number. Running his own fintech start-up at 50, we caught up with him on his early years at the heart of the fintech revolution, his journey so far, and tips for fintechs when collaborating with a bank.

Could you tell us a little bit about your background?

I am one of the older founders in the start-up world. As a 50-year-old, I’m aware that opportunity doesn’t come around that often and I’m thoroughly enjoying the adventure I’m on.

"The biggest challenge in the banking industry today is providing a smooth customer experience"

My fintech journey started in 1999, when the brokerage firm I was working for was purchased by E*TRADE, one of the first online brokers. At the time, financial advisers depended on human relationships to earn their living, but disruption – in the form of technology and changes in market structure – was coming. Electronic trading broadened everyone’s access to markets and flesh-and-blood financial advisers were being taken out of the equation.

Back then, I didn’t realise that I was already part of what would become the fintech revolution. It was a great experience to be part of a business that was transforming an industry, and that experience inspired me to create my own start-up – Bambu.

Tell us more about the inspiration behind Bambu, and how it works

The inspiration came primarily from my years of experience in financial services and witnessing a need going unanswered. During my time as a consultant at a stock trading and robo-advice service, I saw a demand for B2B robo-advice from financial institutions, but at the time there was no solution available. That pushed me to start my fintech venture in robo-advice.

The biggest challenge in the banking industry today is providing a smooth customer experience. This is where Bambu comes in; we want to enhance the banking experience by providing an easy and enjoyable user journey.

We use robo-advice software and algorithms to manage customers’ assets and suggest investment solutions automatically.

What is the most important lesson your fintech journey has taught?

I have learned that selling B2B products requires marketing and momentum. These are the most important characteristics when growing a business in the digital age, in comparison to the old days of cold calling. When we cold call a potential client, we are starting from nearly ground zero. However, when a client calls us because he has seen our brand and name from our marketing efforts, we are starting from a much better place.

How does your partnership with Standard Chartered work?

We were introduced to the team during an event called SuperCharger FinTech Accelerator, as Standard Chartered sponsors the programme. In April this year, we began building a proof-of-concept product with the bank to improve the efficiency of wealth management with a platform that provides relationship managers with information in real time.

"The phrase, ‘build it and they will come’ could not be more wrong. You have to go out and get people interested in your services"

This partnership, with a significant financial market player like Standard Chartered, has opened new gateways for Bambu – from the possibility of developing an actual platform to gaining brand exposure. It has also provided us with opportunities to put our team and skills to work in real situations, as compared to many start-ups who might still be in the prototype stage. The Bank’s large clientele and experience are key points a start-up like Bambu can benefit and learn from as a growing company.

What tips would you give to fintechs that want to work with a bank?

As a B2B solution provider, be aware that businesses are always looking for new technologies. Pay attention to the customers’ pain points and make a connection with your service. Strong customer service translates into a successful product.

When working with a bank, don’t assume you know what the bank wants. We have previously gone into engagements with the presumption that our primary product is here to provide a certain kind of solution, without really listening to what the bank’s needs are. Always go in with an open mind and listening ears. This will help you reach more bespoke solutions, and come up with better ideas.

The phrase, ‘build it and they will come’ could not be more wrong. You have to go out and get people interested in your services. I am the founder of Bambu but also the chief of sales, as well. I have not lost the passion for sharing the idea behind the business. It is about doing hundreds, if not thousands, of meetings and pursuing success. Fintechs face pitfalls like any company, but the pressure is on at the start in particular. Too many start-ups pitch 100 times, get no deals, then give up. You should aim for at least 1,000 pitches, and never give up.

Bambu was one of the finalists in the second iteration of the SuperCharger Fintech Accelerator, which is a 12-week programme, sponsored by Standard Chartered, for early stage and established fintech companies, providing growth tips, mentoring and joint venture opportunities.

How close is a password-free world?

Invisible author — Thu, 21 Sep 2017 08:00:06 +0000

How will the bank of the future know you? By reading your palm. Or your fingerprint. Your eyes. Or other biological data such as your voice.

It will be through some combination of your physical attributes – which cannot be copied like your signature, lost or stolen like your credit card or wallet, or forgotten like your password or ATM pin. The era of biometrics – the technology-enabled measurement and analysis of unique physical or behavioral characteristics – has arrived.

Hello, is that really you?

When Apple introduced fingerprint authentication, or Touch ID, on smartphone screens as part of its two-factor authentication for Apple Pay transactions in 2013, it hinted at the demise of the password. When you consider that the average internet user has to recall passwords to 92 online accounts, biometrics removes the burden of memory and promises a smoother banking experience.

“Biometric authentication promises to be a game changer”, says Stuart Beaumont, our Global Head, Voice and Virtual, Retail Banking. “Banks are innovating with cutting-edge technologies that will make banking more effortless in the future”.

Biometrics in banking is not limited to fingerprint technology. Leading financial institutions are exploring several physical attributes that can be employed for fast and secure authentication. Fast on the heels of Touch ID is Voice ID. Last year, we rolled out voice biometric technology for phone banking services for clients in India and UAE, with more countries to follow.

"Biometric technologies being trialled include finger vein identification"

Invisible author

Can a computer really differentiate one voice from another? Experts say yes. The human voice has about 100 different characteristics that are identifiable by algorithm, such as speed, cadence and pronunciation, and even physical traits like the size and shape of your mouth.

Other biometric technologies that are being trialled within the industry include finger vein identification, where near-infra-red light is used to check the unique pattern of veins inside the finger; live facial recognition for authentication in remote banking; wearable devices that verify identity based on the heartbeat’s electrical pulses, as well as iris scans and eye prints.

Biometrics is here to stay

In years past, to do your banking meant to walk into your local branch with your personal identification and signature to gain access to your funds. Then came online banking, first introduced in the 1980s, followed by the advent of mobile banking.

The mobile penetration rate has soared, in first world economies as well as in emerging markets. Today, one in four customers in the US prefer to use a smartphone for bank transactions, according to a report by the advisory group Mercator. The accountancy firm KPMG estimates that the number of mobile banking users will double to 1.8 billion by 2019 and argues that Southeast Asia will be a main driver of this trend.

As banking continues to move online, the need to balance convenience and security has made biometrics a very attractive solution. Rather than make customers jump through multiple authentication hoops, biometrics reduces the process to mere seconds.

"Security experts are exploring the possibility of multi-factor biometrics to reduce the risk of fraud"

Invisible author

That doesn’t mean banks can get rid of their fraud detection units – there will still be a need to authenticate identities in question, from a customer whose voice is off due to having a cold or distorted by background noise, to a would-be fraudster using a recorded voice or a fraudulent photo, stolen selfie, or a fingerprint on a stolen mobile phone screen.

Security experts are exploring the possibility of multi-factor biometrics to further reduce the risk of fraud, where access to your account is granted with, for example, the combination of a fingerprint and a selfie.

“Biometrics is here to stay,” says Stuart. “The future for us in banking is getting these methods of authentication across all of the channels through which the bank operates. Clients should be able to use the same method of authentication, whether they walk into a branch, use a mobile app or contact the call centre.”

This article was created by BBC StoryWorks, the commercial content division within BBC Worldwide, and was originally published here (please note the link is not accessible from the UK).

The mobile wallet: where it began

Invisible author — Tue, 19 Sep 2017 08:00:51 +0000

The mobile wallet, a fixture in smartphones today, goes back a decade with beginnings that may surprise.

The story begins in 2007 in Kenya, one of Africa’s emerging fintech hubs and an early adopter of mobile technology. Workers wanting to send remittances to family members back home started experimenting with a mobile application to transfer money directly to the phones of their relatives.

That prompted the creation of M-Pesa – which combines the words mobile (‘M’) and the Swahili word for money (‘pesa’).

"The whole mobile wallet mass adoption started in Kenya"

“It’s a story that I often tell,” says Gautam Jain, our Global Head of Digitisation and Client Access, Transaction Banking. “The whole mobile wallet mass adoption started in Kenya. One of the most interesting use cases was about workers in the city trying to send money to their relatives in the village.”

The mobile method of sending remittances had many advantages over the earlier methods. “What they used to do previously was to take their cash, go to the nearest bus station and find a bus that was going to their village. They would give the money to the driver, who had to find the relatives to drop the money off,” Jain says.

That, of course, posed many problems. The money transfer would often take days and use precious resources, not to mention the dangers and security risks involved.

From basic to state-of-the-art

Now, a sender can simply press a button on a mobile phone and loved ones will receive the cash instantly on their phones. M-Pesa also allows users to deposit, withdraw, transfer money and pay for goods and services.

“This ecosystem has taken off like a rocket, especially in emerging markets. You went from basic infrastructures to absolutely state-of-the-art,” Jain says.

Sub-Saharan Africa, with its fast adoption of mobile technology, has become a global leader in mobile money. Telcos were quick to develop mobile wallet services to enter markets where existing infrastructure was lacking to create a thriving mobile money ecosystem.

The mobile wallet is an example of ‘leapfrog’ technology: places where fixed-line technology never existed can now jump ahead of outdated communications infrastructure and advance to a 21st-century banking ecosystem. In 2015, 2.8 trillion Kenya shillings (USD28 billion) was transacted through the platform, equivalent to about 44 per cent of the country’s GDP of USD63.4 billion in the same year.

Transforming NGOs’ work

The technology has also transformed how non-government organisations (NGOs) operate in parts of Africa. NGOs used to hire a van with security guards to transport cash to send relief aid for food and supplies to needy families in remote regions. The driver and security guards contended with rough rural roads and the threat of bandits. Now, administrators at an NGO office in Nairobi can simply press a button and send the money instantly to the mobile phones of the recipients.

In emerging markets, most people still pay or get paid in cash. Mobile wallets are changing all that, allowing people to use mobile wallets such as M-Pesa to provide a fast, cheap and safe alternative. Mobile technology has opened up avenues for business, commerce and NGOs to operate in otherwise fragmented and underdeveloped regions.

"Mobile wallets are increasingly becoming the gateway to banking and financial services"

In the process, the financially excluded can now be included, offering a safe way to save and transact money, create a financial identity and credit history, insure their property and access loans and other financial services.

As mobile phone penetration rates skyrocket, mobile wallets are increasingly becoming the gateway to banking and financial services. “Mobile penetration in some markets is over 100 per cent,” Jain says. “It is quite fascinating to see how this space evolves and how people are using their phones to conduct their everyday business.”

This article was created by BBC StoryWorks, the commercial content division within BBC Worldwide, and was originally published here (please note the link is not accessible from the UK).

Seven ways we will bank in the future

Invisible author — Thu, 14 Sep 2017 08:00:12 +0000

The future is giving way to a new normal where banking continues to become easier, safer and more customer-centric. Here are seven glimpses into the not-so-distant future.

1. Your ATM card will become obsolete

As more retail and business customers switch to digital platforms for banking, physical bank branches staffed by bank tellers will grow smaller or increasingly rare. Today, advanced ATMs equipped with video teller services and automated teller functions are offering extended or round-the-clock branch services for added convenience. And if you’re always misplacing your ATM card, you can expect future ATMs to forego the need for cards altogether. Instead, they will use digital banking apps or mobile-enabled near field communication for access.

2. Cash will no longer be king

Are we headed towards a cashless world? It certainly seems possible. In addition to debit and credit cards, digital payment services, such as Android Pay and Apple Pay, have made cashless transactions possible via a mobile phone or smartwatch. Countries leading the way include Belgium (93 per cent of consumer payments are cashless), Australia (86 per cent) and South Korea (70 per cent). In China, mobile payments are growing faster compared to Western counterparts. According to the Financial Times, Chinese mobile transactions last year were valued at USD5.5 trillion – 50 times greater than that in the US.

3. You will only need your eyes

Almost every digital service we use, from social media to banking apps, demand unique logins and passwords to verify our identity. With increased security comes added inconvenience, with the average internet user having to recall passwords to 92 accounts, according to Dashlane, the password management service. Leading banks are simplifying user authentication using fingerprints, voice biometrics and other options to replace passwords as a way to verify a user’s identity.

4. Real-time recommendations will become reality

Big data and sophisticated analytics have transformed how banks mine and understand customer data. Coupled with advancements in artificial intelligence and machine learning, banks are increasingly equipped to provide predictive personalisation, from tailored products and services for anticipated life events, such as a mortgage or a child’s university education, to real-time recommendations and financial advice.

5. Chatbots will be at your service 24/7

On-demand customer service has long been provided through a bank’s telephone hotlines, but leading financial institutions are currently training a new kind of service staff: chatbots. These artificial intelligence-enabled computer programmes that mimic human conversation and messaging apps are ushering in the era of on-demand mobile banking, where you can speak to your own personal finance manager any time, from anywhere, in any language.

6. Pay for purchases via your car or fridge

The Internet of Things – machine-to-machine communication – has already enabled our smartphones and watches to ‘speak’ to point-of-sale devices for payments. With more smart devices entering the market, such as the Amazon Echo, the smart speaker that can make online Amazon purchases; Samsung’s Family Hub refrigerator, which connects to local retailers to place grocery orders, as well as the connected car fast becoming a reality, your transactions will no longer be limited to your computer, smartphone or tablet.

7. Robo-advice will be the new norm

Relationship or wealth managers have traditionally been responsible for advising clients on ways to grow and maximise their investments and assets. Today, robo-advisers are becoming increasingly popular, particularly with a younger and more digitally-savvy audience. Putting to use computer algorithms, the automated technology can assess a client’s financial situation, future goals and risk appetite and automatically allocate his or her wealth across different asset classes, from stocks to bonds, with minimal human intervention. According to Cerulli Associates, a financial services research firm, assets under management of robo-advisers will rise by 2,500 per cent to USD489 billion in 2020 from USD18.7 billion in 2015.

This article was created by BBC StoryWorks, the commercial content division within BBC Worldwide, and was originally published here (please note this link is not accessible from the UK).