Fit for the future: how tech is transforming the banking industry

A new report by Raconteur and NatWest delivers a compelling deep dive into how banks are transforming to  take back control from fintech disruptors.

“Despite predictions that technology firms will take over, 69% of UK technology and banking leaders think that banks will assert their ascendance, mainly because customers trust them more than technology companies,” is one of the report’s positives messages for banks. However, industry stakeholders interviewed by Raconteur also emphasise that “the growing financial services market share of big techs such as Apple, Amazon and Google will force banks to digitise further to remain competitive.”

In this context, the report outlines how banks can create win-wins through collaborations with digital players while using purpose, a focus on ESG and the power of human connections to position themselves as the better suited partner to manage the money of “conscious consumers”. 

Furthermore, payments specialists provide examples for how the shift from cash to online transactions has driven banks to digitise their processes, improve user experience, and introduce safer and more streamlined payment products and methods to meet customer expectations. NatWest’s Ian Povey and Swift’s Nick Kerigan highlight the work that is going on to harmonise payment messaging and exchanges across different standards to improve customer protection across countries, and efficiency. Ian Povey: “We are implementing ISO 20022, which will provide more structured and richer data for faster, easier and more reliable payments. Data equity and data flow are also critical. With ISO 20022, we can ensure data is available at the right time and place to improve customer experience.” 

Povey also talks about the required change in mindset to boost innovation and transformation: “A culture of experimentation and willingness to fail fast is important. This has supported our successful innovations in open banking with Payit, our e-commerce solution; and Tyl, our merchant acquiring proposition.”

Download the full report

To read more about how banks are reshaping their business models to create new, exciting opportunities, download the full report by clicking on the button today.

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