The Next Digital Step For Banks To Take

In today’s digital world, even an industry as staid as banking is not immune from forces that could change its landscape. According to a 2013 report titled Banking in a Digital World by management consultancy firm AT Kearney, banks will have to adapt to new ways of providing advice to their clients.

In AT Kearney’s views, the future for banks would be to provide general financial advice through professional research tools, comparison portals, and even social media. For more individualised advice, banks can reach customers via video and chat channels. This will allow banks to service their clients 24 hours a day.

Then again, such a vision is easier imagined than implemented. The existence of legacy systems make it hard for banks to provide these digital services. IT departments need to be empowered by senior management to do so. Some foreign banks have opted to create new banks instead of trying to change existing internal processes.

In Singapore’s case, our three local banks – DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11) – all  have their own mobile banking apps. That’s a good start. It’d be interesting to see how or if the local banks’ businesses will change so as to be fully relevant in a future digital age.

For more investing insights and to keep up to date on the latest financial and stock market news, you can sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Ong Kai Kiat doesn't own shares in any companies mentioned.