Veraciously speaking, sometimes when you share your thoughts prompted by your observation and research findings on changes in a specific industry, it becomes crystal clear that change is imminent and we always have to quickly adapt or become history, the so-called “has-beens.”
Unfortunately for some people, when discussions regarding innovations or inventions are brought to the fore, they are disqualified as just premonitions and propagating may give you an infamous title of prophet of doom. But the indisputable truth is that change is not always received as a positive thing. It can be so fast-paced that you are left wondering what just happened.
However, change and progress cannot be stopped or diverted. Like a storm gathering, you can’t stop it. You either avoid the storm completely or you face it head-on before it gathers more strength. If an opportunity is missed, you will probably never be able to keep up with trends.
Take, for instance, COVID-19. Its manifestation has demonstrated that most things are not guaranteed and that change can happen within an instant. It has prompted the thinking of executives and business strategists in every industry to constantly ask themselves, what’s next? Even though we don’t know, are we prepared to respond to any unwelcome change? Is our business resilient enough to deal with whatever may come?
Some organisations and businesses are already in 2030, some in 2040 or even 2050. This is not far-fetched and calls for some serious investments to be made now, be it in human capital, systems, responses to regulatory requirements, customers’ needs and stakeholders alike.
If you have a minute, go on the net and search for “Seven World-Changing Inventions People thought were Dumb Fads.” By just glancing through, you will probably think individuals who doubted these ideas at the time were seriously kooky. But that could be you and I right now in 2022 doubting some of the emerging trends and probably saying the same thing.
As an exponent of innovation, I read a very interesting article on how banking is likely to be in the Year 2030, according to the Digital Banking Report of November 2021. Allow me to share some of the salient observations from this report because we need to be aware of these trends and gradually transform modern banking and businesses. So here are the anticipated trends in banking:
- The number of bank branches will be reduced by over 25 percent from the current levels.
- Over 75 percent of enterprise banking applications will move to the cloud.
- More than 50 percent of payment transactions will be initiated through non-bank channels.
- IoT solutions will drive more than 20 percent of transactions.
- Two or more fintech or big tech firms will become Top 10 financial services providers.
- Cheque, savings and credit products will be combined as a single solution.
- Due to digital transformations, reduction of current cost-to-income ratios at incumbent financials will exceed 20 percent.
- Use of plastic cards will decrease to less than 25 percent of payments.
- More than half of Top 10 financial services firms will combine banking with retail, health and other services.
- Consolidation of incumbent bank and credit unions will reduce the number of institutions by more than 25 percent.
- More than 50 percent of consumers will prioritise environment, social and governance (ESG) issues as a primary factor in selecting a financial service provider.
- Virtual and augmented reality will be used by 20% of consumers as an alternative channel for daily transactions.
- Blockchain and digital ledger technology will be used by more than 75 percent of financial institutions
- Cryptocurrencies and digital fiat currencies will be used more frequently than cash.
By Mr Gomolemo Kololo Manake
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