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In the world of banking, this rapid uptake of digitalisation has led banks to accelerate the rethinking of their traditional business model including their bricks-and-mortar branches. IT systems have become more important. For a digital bank, some argue, a fully secure IT system is its single-biggest asset. It is clear that banks need to respond quickly and efficiently to customer demands while keeping services safe and simple to use.
Security and trust remain critical. Banks over the years have developed innovative banking products and services, including secured systems that reliably protect client data and money. Many banks are already partners with financial technology groups and are investing in innovative FinTechs, financial technology start-ups which aspire to be tomorrow’s European leaders in financial services. Digital banking has become a fiercely competitive space.
The digital revolution touches the banking sector. This is why it is important to determine how banks can contribute to the Digital Single Market (DSM) that the European Commission (EC) wants to establish. Creating the DSM is one of the ten priorities set out by EC President Jean-Claude Juncker. When Vice-President Ansip in May 2015 presented the DSM Strategy, he underlined the importance of making the European Union’s (EU) single market fit for the digital age. It means tearing down regulatory walls and moving from 28 national markets to a single one. According to the European Commission, a single market could contribute €415 billion per year to the EU economy and create some 3.8 million jobs.
For the banking sector it is crucial to build the right framework to facilitate competition, innovation and to ensure that consumer protection, trust and security are maintained.
Banks in digital age – key points to consider: