In the rapidly evolving financial landscape, banks are facing challenges that require them to adapt and innovate. But amidst all these changes, the importance of trust remains constant. Trust is the foundation upon which successful banking relationships are built, and it will continue to be a crucial factor in shaping the future of the industry. But consumer trust in banks has stalled globally, and factors such as poor customer experiences, privacy and data breaches, and the growth of AI in banking are further straining it.

A decade ago, banks hoped that digital transformation would revolutionize the way they operate. Unfortunately, many banks failed to prioritize customer obsession and truly transform their business models. What remained are transaction-focused organizations that leave customers feeling that their banks don’t understand or care about their financial needs. This disconnect hampers trust, resulting in financial, competitive, and reputational impacts.

To meet the needs of future consumers, banks will use technology to anticipate customer needs. They will deliver proactive, relevant services, connecting with partners and ecosystems to create better financial outcomes for their customers. By leveraging data and insights to create value, they will align their businesses with customer values in a purposeful way.

Banks can stay relevant and build trust in a rapidly changing industry by adopting these characteristics:

  1. Invisible. Leading banks will use technology and far deeper customer insights to insert financial services at the customer’s moment of need, potentially at the expense of brand visibility.
  2. Connected. Technologies, partnerships, ecosystems, and platforms will combine across multiple industries, sharing data and resources to deliver financial outcomes.
  3. Insights-driven. Banks will create value from data and elevate custodianship of consumer trust. An expanded role around consent and identity will enable consumers to have finite control of their financial and digital lives and build a mutually beneficial relationship.
  4. Purposeful. Consumers will prefer banks that align with their values in a new, more purposeful age that sees local and cooperative principles aligning to matters of global responsibility.

Leading banks are adjusting strategies, embracing innovation, rethinking business models, and deepening their understanding of their customers to chart their future paths.

This figure shows the four major themes of banking of the future — invisible, connected, insights-driven, and purposeful — and the three perspectives: collaborator, bank, and consumer.

To learn more about what leading banks are doing and how to prepare your firm for the future of banking:

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