Regulatory Compliance and Mobile Payment Systems BIG TERMS in banking industry for 2015
Regulatory compliance- in a layman’s language is the punishment given to banks for jumping the gun on any rule or regulation laid by the global banking sector authorities. The same has been the BIG push button for most of the banking executives (68% globally) as they are highly tensed about not to stand as a victim according to the 2015 banking tech trends. This has been a major concern so much so that the operations cost has gone up by almost 10% due to the additional maintenance and management expenditures. However, everything isn’t bad about compliance as it is estimated that about 60% of the global population will use net banking facilities by the end of 2015.
37% of the world’s banking executives have focused on putting mobile payments as top payment medium by year end. This has brightened the chances of making smartphones an alternate or an additional source of wallet. Several developed countries like US and Japan are already using the services a while now. Let us glance through a few numbers that will prove as trend setters for the banking sector in 2015 and beyond.
Innovation in functionality is unmissable for growth and sustainability:
As the sub-pointer indicates quite clearly, constant innovation is required for every sector and banking doesn’t score any different. 87% of world’s banking executives agree that unstop innovation is somewhat important for growth and sustainability in the banking industry. 35% of them annually plan to upgrade the technologies used and bring improvements in infrastructure thus they work towards achieving reduction of the cost of operations without compromising with efficiency. A notable size of 43% of bankers in the US accept that changing or upgrading with the technologies on a timely basis is the only way to keep the services and profits up in the sector.
Regulatory Compliance is playing the PARTY-SPOILER:
A majority of the banking community view regulatory compliance as the biggest concern for 2015. 68% from the industry feel that this is constantly turning out to be the most harmful concern with the passage of time. Almost 80% of the banking employees indicate that a higher regulatory cost has a direct negative impact on the gross profitability levels. 60 out of every 100 banker in the US report that regulatory expenditures eat up to more than 10% of their total operating costs.
Risk Security and Management will enhance largely in 2015:
Shielding the management and operation of a bank has become a struggling task that keeps most banking executives sleepless. 29% express their concerns for improving risk management methods and call it as their ‘greatest business concern’. On the other side, 27% point Cyber Security as their biggest worry. 79% of the banking surveys reported that there will be a massive hike in the information security budgets in the coming three years. 92% of banking and financial institutions accept that they wholly depend on their Information Technology (IT) department for cyber security and online threat coverage.
Mobile Banking the BUZZ but deeper penetration required:
Alike for other activities banking too is touched by the magic of mobile. 37% of the banking experts feel that mobile payments will be the single most important focus of the industry in 2015. This will improve the investments in the IT sector and bring in unpredictable funding into the sector. A majority of 60% banking customers are expected to use mobile banking facilities by the end of 2015 and a bust of 90% will be utilizing the online banking medium by the same time.
At present, 93% of the customers using mobile banking check their balance using their mobile. However, only 44% of them make payments using the same medium which specifies a massive untapped potential.
Customer focused spending is the key:
As the old saying goes, “Customer is King” 61% of the global banking bosses believe that the future behavior of the sector is getting customer centric and this according to them is ought to turn as an universal business model in the banking sector for 2015. In the US alone, there are 47% bankers who feel that the changes which are about to happen in the next 3 to 5 years will be purely based on customer demands, their buying patterns and preferences.
33% of the banking sector executives believe that upgrading and simplifying technologies in favor of customers is the best way to attract them and expand the clientele. They also support the need for increase in IT investments in order to bring in betterment in customer experience.
Banking sector is the most well performing industry as it is a supportive industry to several other sectors.