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Top 10 technology forces that will shape financial services in 2020

The accountants PwC have published a report that lists the ten most important technology-driven forces that will shape competition in the financial services industry by 2020 for financial institutions. They say that these are:

  • FinTech will drive the new business model
  • The sharing economy will be embedded in every part of the financial system bringing together those who have excess capital with those that need financing, leading to the disintermediation of traditional lending models
  • Blockchain will shake things up
  • Digital becomes mainstream
  • 'Customer intelligence' will be the most important predictor of revenue growth and profitability
  • Advances in robotics and Artificial Intelligence (AI) will start a wave of 're-shoring' and localisation
  • The public cloud will become the dominant infrastructure model
  • Cyber-security will be one of the top risks facing financial institutions
  • Asia will emerge as a key centre of technology-drive innovation
  • Regulators will turn to technology.

From Top 10 technology forces that will shape financial services in 2020

I really don’t think that blockchain will shake things up by 2020, but that’s just an opinion. Anyway, I want to pick on three of the PwC forces to open up some more discussion.

AI and reshoring. XXX. Many years ago I wrote a piece for a financial services client saying that I thought that call centres and other support services in India would, because of voice recognition and voice authentication, eventually be replaced by a rack in a data centre, not by cheaper call centres in Vietnam of wherever.

Public cloud. XXX.

Regtech. XXX.

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