→ Rethinking banking

Welcome back to My Two Cents

Whether you're returning after last month's insights or joining us for the first time, I'm glad you're here. The world of banking and finance never stands still, and neither do we.

This month, we're venturing into the digital frontier of banking. It's a space where technology is not just an enabler but a game-changer, raising questions, and offering unprecedented opportunities.

While I value the foundations laid in the past, my focus is on understanding the emerging trends and their impact.

As always, this space thrives on collaboration and conversation.

Your insights, feedback, and perspectives enrich our discussions. And if you find value in what you read, consider sharing it with your community.

Now let’s start.

?? Today’s Feature Topic: Tackling Digital Overhauls in Banking

Banking stands at a crossroads. While traditionally a bastion of stability, it now confronts a rapidly evolving digital landscape.

As financial institutions worldwide integrate advanced technologies, the conversation delves deeper - beyond tools and platforms to the core of what banking means in this tech-driven era.

Online transactions rise as in-person purchases decline. The post-pandemic shift has only accelerated this trend. Per a 2022 survey, 78% of Americans now prefer digital banking.

As digital banking continues to gain popularity, it’s important to understand the growth of the digital banking platform market in the United States.?

The graph shows the projected growth of the U.S. Digital Banking Platform Market from 2019 to 2025. The market is expected to grow at a compound annual growth rate (CAGR) of 13.6% during the forecast period, driven by factors such as the increasing adoption of mobile banking and the rise of digital-only banks.

So arises the pressing question:

How can banking redefine itself in the digital age while preserving its foundational values?

?? My Two Cents Worth

This change entails more than just bolting on new digital tools. It requires rethinking banking's very essence.

Innovations like blockchain are revolutionizing transactional security, marking a new chapter in commerce. Consider:

• JPMorgan Chase developed its Quorum blockchain platform (later acquired by ConsenSys).

• The Bank of England partnered with banks to build RTGS.global, a blockchain-based real-time gross settlement platform.

Yet as we adopt these advances, we must recall banking's heart: personal connections.

The 1950s Tupperware parties, fueled by personal ties and trust, echo banking's intrinsic nature. While our methods modernize, the core objective remains: building and sustaining trust, whether in-person or online.

?? Closing Thoughts

Going digital brings opportunities and challenges. From amazing new technologies to potential risks like misinformation and deep fakes, the road ahead is tricky.

But if we stay anchored in timeless values like trust and personal connections, we can handle this change with purpose.

As the digital banking platform market continues to grow, it’s important for banks to keep up with the latest trends and technologies to remain competitive.

However, it’s also important to remember that digital banking should not come at the expense of personal connections and trust, which are at the core of banking's values.

As you think about banking's future, ask yourself:

How will these technologies change your banking?

And how can you use them to stay competitive but still ensure trust?

I invite you to join the conversation and share your insights below.

?? Financial Sector Month in Review

?? Next Edition Preview: Cryptocurrencies: Moving Beyond Speculation to Understand Real-World Implications.

Until next time, here's to strong financial foundations and the stories they tell.