Banks have been challenged to develop technology to more effectively fulfil their traditional role, but the move across could be a trial to their conservative history.
Banks are increasingly investing in technology companies in a bid to understand the processes behind the integration of efficient and customer-centric services and the traditional and still relevant characteristics of banking, according to HSBC.
HSBC global head of digital, retail banking and wealth management, Josh Bottomley, said customers are still not fully convinced by tech-only operations, and that banks and fintechs must work together to develop a median that is the most efficient solution.
Technology-based services including those in the payments and e-commerce spaces, as well as those underpinned by biometric technology had been identified as the biggest games changers.
Bottomley said the merger of the different agendas often saw banks both hire technology-specific staff, as well as form partnerships with fintech enablers.
“Technology companies thrive on innovation and taking risks. Banks, meanwhile, have a duty to be more conservative as they focus on looking after other people’s money,” he said.
“[Banks] are also mentoring and working with the next generation of inventors and entrepreneurs so that they can keep pace with changing consumer tastes and developments in technology.”
Bottomley said the banking industry needed to be bolder, move faster, and develop further to continue to stay ahead of the game. In addition, Bottomley said technology had provided banks with “incredible opportunities,” which could be utilised to make services quicker and simpler, as well as unburdening employees from menial tasks including data entry.
“Technology has transformed the way we consume products and services,” Bottomley said.
“The challenge for banks has been how to harness and develop digital technology to fulfil their traditional role more effectively. That’s not always straightforward.”