The Banking Reviews 2019
The Banking Reviews 2019: Innovation and Compliance: Challenges faced by the Banking Industry
Neo-Banks, PSD2, Blockchain & Cryptocurrencies, RPA&AI, sustainability, Sia Partners reviews the major issues and challenges encountered by the banking sector in 2019.
FinTechs play an increasingly important role in a constantly changing environment. Recently, a new challenge emerged under the form of new entrants from the FinTech world: Neo-Banks are attracting more and more consumers by offering new innovative features, well-designed interfaces and unrivalled customer experience. The new PSD2 is also changing the payment landscape by allowing third parties to access bank accounts, provide account aggregation services to the customers and finally proceed payments on their behalf.
Another key element in this evolving banking sector: Blockchain and namely cryptocurrencies which need to be regulated. On the one hand, there is no doubt that the concept of cryptocurrency based on Blockchain technology is beneficial in terms of lower transaction cost, secure digital transaction & execution efficiency. On the other hand, more and more illegal cryptocurrency related activities occur, utilising the feature of the anonymous transaction and distributed ledger. The risk building up in the financial ecosystem is rapidly emerging and appropriate governmental response is necessary.
Besides Blockchain, RPA is also a key element which benefits the banking sector, namely finance and compliance functions.
- Finance functions at large are under pressure to shrink costs, improve speed, deal with increasing volumes of complex data and bring new value to business partners through actionable insights. RPA/AI is providing finance functions with new opportunities to achieve these aims.
- The repetitive nature of onboarding KYC/AML compliance programs makes it particularly attractive for RPA solutions. While many of the tasks that are part of the program are fairly nuanced, they are systematic and can be followed by a set of automated steps.
The Paris Climate Deal has once again triggered the debate about sustainability. Banks have an important role in society to contribute to a more sustainable world and help achieve the goals set by the Paris Climate Deal.
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