Economist Impact , commissioned by Temenos , has conducted a study on emerging trends in the banking industry. By surveying banks across the globe, the research found that financial institutions must implement disruptive technologies to remain an integral part of the banking universe.

This can be achieved either by developing their own solutions or by participating in digital ecosystems. The study’s findings The report indicated that payment companies, technology, and ecommerce disruptors are currently competing against banks with Embedded Finance solutions. Together with consumers’ growing expectations for improved and more personalised products, this forces banks to assess their role and how they must adapt to meet these demands. As per the research, 79% of survey respondents agree that banking will become embedded in consumers’ lives and businesses’ value chains.

Moreover, one in five banks expect their business model to evolve in the coming years to offer Banking-as-a-Service (BaaS) to brands and fintechs, while also enabling Embedded Finance within their own products and services. Approximately double the amount want to retain the consumer-facing experience and act as a digital ecosystem themselves. According to Economist Impact’s officials, additional technology and customer demands represent the main trends expected to impact banking in the next five years. This customer-centric approach will push banks to offer more embedded ESG and sustainable banking propositions to their clients in the future.

Temenos’ representatives confirmed that banks need to leverage expertise in new technologies, such as cloud and artificial intelligence (AI), as well as to collaborate with fintechs to widen their service range. The report found that 51% of respondents agree that banks will no longer own any data centres due to the transition to the public cloud in the next five years. In addition to business agility, efficiency, and security, environmental concerns represent another reason why banks are accelerating the shift to the cloud.

As stated by 63% of respondents, the introduction of new technologies is projected to have the most significant impact on banks, as younger generations tend to value a modernised banking experience. AI is expected to also have a considerable influence in the industry, with generative AI in particular projected to drive banking by 75% of surveyed individuals. By collaborating with fintechs and other technology providers, banks can access expertise in emerging technologies, with 44% of respondents stating that they will acquire majority stakes in fintechs.

More information about the research The report offers insights from a global survey of 300 executives in retail, commercial, and private banking from Europe (25%), North America (23%), Asia Pacific (18%), Middle East and Africa (17%), and Latin America (17%). Respondents perform various functions, including IT, customer service, finance, marketing and sales, strategy and business development, and general management, among others. .