The Digitalisation of the Banking Sector

Today, more than half of the world’s population- some 4.5 billion people- have access to the internet. This means two things: we are more connected than ever before, and we must expect more change over the coming years as the rest of the world’s population finally gets access to the internet.?

The age of digitalisation has essentially just begun and is arguably the biggest force in the world today. Satya Nadella, Microsoft’s chief executive, says that digital technologies “foreshadow socioeconomic change ripped from the pages of science fiction”, but what does it mean in the financial world- the world where EastNets operates? I talk about this in my book:

“The advent of digital technology has changed the way people want to bank: typically, they want, and expect instant service. To meet their needs, new businesses have emerged to cater for them: so-called challenger banks and a vast number of fintech companies that live in the cloud and have no physical presence on the high street.?

Meanwhile, the financial industry has become a new arena for the increasingly heated cold war between China and the West. The Chinese government has made AI one of the central features of its bold ‘Made in China 2025’ plan to transform the country’s economy- and it wants to be a global leader in technology by 2030. This is a significant move. China and the United States appear to be racing each other to be the country that sets the global standard in this technology.?

China’s banking industry is expected to be a big beneficiary of this technological push. The country is already the world’s biggest market for mobile payments: in 2017, the value of mobile payments overtook the combined totals of Visa and Mastercard for the first time. This is expected to increase with the rise of the e-yuan, China’s ‘digital renminbi’.?

In due course, China may use its digital currency to make international trade settlements, and this may be when it challenges the global supremacy of the US dollar. Also, the government’s control of the digital currency will allow it to combat money laundering, banking fraud and the financing of terrorist activities.”

What's clear for now is that from a global perspective, all entrepreneurs must continue pushing forward with a clear strategy that prepares for the digital future.?