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Consumer Electronic Show 2015 - Consumarization of FinTech

Keeping with the hype of internet of things, drones, wearable, 3D printing, virtual reality and other; this year's CES was full of new technologies and trends. Consumers are on the verge of getting the best possible experience they can have. With consumarization of IT, some of these technologies will be adopted by enterprises in a hurry. Specially for the usecases which enable high revenue growth and cost saving.

Banks can use few of them not only to improve customer wallet share and reduce cost of operations, but also to compete with disruptive alternate banking services. Here are few trends and potential use-cases banks could look to explore:-

Drones

Drones were big hit this year in CES. For example wrist-worn Nixie drone has camera & recording facility, few drones have weight carrying capacity. 

Banks can easily use this to reduce cost of operations. Using drones it can simplify AML and KYC, some of the risk management processes. It can also help in emerging markets like Africa in communication and postal services to deliver bank account documents, cards etc.

But, drones usage has its entry barrier from regulation pov, it also will face resistance from consumers due to privacy issues.

Wearables & Internet of things (connected homes, branches, shops etc)

The "digital coach" introduced garments which has sensors embedded in it, which can track health parameters like oxygen levels and motions using mobile apps. Other wearables includes array of smartwatches and medical wearables that measure body fat or capture brain signals to get a handle on stress etc. Intel has introduced a chip called "Intel Button" which is essentially a processor with Bluetooth low-energy radio, sensors and a dedicated engine to determine different sporting activity. It's also able to run for extended periods with a coin-size battery, or can be recharged.

Banks can drive multiple usecases w.r.t rewards and loyalty to drive higher volume of transaction for the bank in retail stores, travel agent, Hotel etc.

with the spread of IoT we should expect high degree of adoption. It has no or very low entry barrier. This should see driver for innovative services.

Folding/Curved display

Samsung has introduced foldable display like Youm couple of years back. Its continue to invest in bendable displays this year with introduction of 103-inch bendable display TV.

Banks can go green and paperless with 100% digitization of paperwork still requires use of pen. Lot of middle office back office processes will be impacted.

Entry barrier is still high as the commercialization is yet to happen and cost of display is very high. Once that achieved, expect high degree of adoption.

Augmented and virtual Reality

Immersive devices such as the Oculus Rift prototype headset Crescent Bay, and advances in 3D audio.

Banks are already repositioning Branches for more advisory services and less Transaction services. If some of the advisory services can be virtualized, then banks can save a huge amount of real estate cost by moving to smaller branches. In fact next generation branch can well be a telephone booth.

no entry barrier, banks are not yet ready for this radical change.

3D printing

Scanify's 3D-scanner, dubbed the Scanify. The company claims it can take a 3D scan in one-tenth of a second, by combining precalibrated stereo cameras with photometric imaging.

Banks can use it to improve wallet share. On the spot credit or debit card production can reduce the ideal time any customer has between becoming customer and receiving the card. This will result in higher volume of transaction flowing through the card.

Entry barrier is still high cost of 3D printer is very high, technology is yet to mature. Expect adoption few years down.

With the convergence of consumer and enterprise interest levels towards technology, Banks should start to incubate such technologies since its inception to bet big on the future!!

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Abhishek Chatterjee

Abhishek Chatterjee

Managing Partner

Gartner Inc.

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16 Dec 2014

Location

London

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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