The banking sector will undergo considerable change

Significance

Banking is on the cusp of fundamental change: the fortunes of individual banks will rest on how they respond to the ensuing risks and opportunities.

Impacts

• The number of people employed in the industry will fall dramatically, driven by rapid technological change, especially automation.
• Fintechs may resist being acquired out of a fear of losing their cultural identities in larger banks.
• Innovation will be key, whether it is maximising the use of data or devising attractive new products in an increasingly competitive market.
• The EU is outpacing the United States in terms of use of digital banks, helped by having more regulation in place on use of customer data.