A study conducted by Infosys Finacle and Efma has revealed that mobile wallets and lending products are likely to be the main products of banks by the year 2022. The study attributed this potential change to the growth in innovation and technology over the next few years. According to the study, about 49% of the banks now have a defined innovation strategy as against 43% in the year 2017. It should be noted that the proportion of banks that had an innovation strategy was only 37% in the year 2009.
As a part of the study, bankers were asked about the products that will be the main area of focus in the next four years. Most bankers revealed that mobile wallets, lending products, and payments will be the top products of most banks in the country. It is worth noting that these are the areas in which non-traditional financial institutions are already having a great impact.
The report also noted that third–party channels, social media, and digital assistants are expected to become primary digital banking channels in addition to the existing mobile and online ones.
In almost 50% of the banks that participated in the survey, delivery channels are the main areas of focus and innovation over the next four years. When it comes to the technology that will drive innovation in delivery channels, application program interfaces (API) are believed to be the key in the upcoming years. Most importantly, organisations are also now focusing on their return on investment (RoI) perspective when they go ahead with innovation.
Infosys Finacle, a division of Infosys subsidiary EdgeVerve, partnered with non-profit organisation, Efma, to release the 10th Annual Study of Innovation in Retail Banking. More than 300 banks participated in this survey and provided their opinions on digital innovation in the banking sector.
Source: Financial Express