What the world of banking will look like in 2025 – 7 Key Trends
Speaker: Jason Davies, VP Digital Payments and Labs, MasterCard Canada
From the early days of electronic banking on a dial up connection, to online banking in mid 90s, followed by mobile banking and now, in its current form, digital banking, that encompasses both mobile and online – the banking industry has come a long way.
Digital disruption is usually measured over a 10 year time frame and in Canada, with regards to banking, we are currently in the 4th year. However, things are looking up and may be vastly different in 2025. Jason Davies, took us through some of the key trends we can look forward to in the years to come.
1. Early movers in the digital space will reap the benefits
By 2020, it is projected that 97 % of all Canadians will be connected to the internet. As a result, early adopters and players in the digital space will reap the benefits of being first.
2. Need for speed
Consumers have come to expect a certain level of quality and speed when it comes to digital. Hence, companies that are going to succeed in 2025 will have to be nimble, responsive and anticipatory.
3. Dynamic Identities
Identity has become more fluid and will continue to be so. There is an extended middle-agedness and shifting gender roles, amongst other things, and organizations cannot bucket people into streamlined verticals anymore.
4. Adaptive Retail
Consumers in 2025 are certainly going to demand a personal touch in every transaction. It will be about personalizing the experience for your consumers, even to the extent of providing dynamic pricing for individuals.
5. Privacy Push backs
Right now, consumers are willing to provide brands with data so they can get better deals but in the future, in addition to wanting more control, they are going to be more careful about the data that they share. They would want to see who, why, where and how brands are going to use this information.
“Millennials are very eager to share their personal data but interestingly enough, centennials, the generation that is coming behind them, are very cautious with it.” Jason Davies, VP Digital Payments and Labs of MasterCard Canada
6. Cashless Society
We have been slowly but surely moving towards a truly cashless society and 2025 will not be an exception to this.
7. Power Shift to Cities
There is a massive movement towards urbanization. For instance, since 2014, in Canada alone, 13.2% of Canadian population has moved to more urban locations.
Globally there is a massive shift towards accelerated urbanization and increased facilitation of international transactions.
Interested in continuing this conversation and to learn more? Check out the MasterCard booth at the New Retail Frontier section of Dx3 2017.