The internet of things continues to catalyze transformation across numerous industries. However, few sectors are experiencing as much IoT-driven disruption as the financial services space. Consumers equipped with on-the-go connected technologies are urging banks and other financial institutions to reshape their operations. Firms in the industry are responding to meet this demand, orchestrating sea changes in several key areas.
For one, physical currency is slowly losing traction within the financial services sector, Bloomberg reported. Here in the states, Americans of all ages are using less cash, according to data from Gallup. Debit and credit cards are becoming the payment methods of choice, along with smartphone-based wallet applications. Overseas, the erosion of traditional currency is even more pronounced. In Sweden, for example, consumers are abandoning national notes at such an accelerated rate that some economists are now regularly floating the phrase “cashless society.”
“Since 2012 Bank of America, Chase Bank, Citibank and Wells Fargo have shuttered droves of retail locations.”
Of course, as more people rely on digital methods to make everyday transactions, the need for physical branches dwindles. Since 2012, the big four U.S. banks – Bank of America, Chase Bank, Citibank and Wells Fargo – have shuttered droves of retail locations, funneling the funds once used to keep these sites running into online banking initiatives, Tearsheet reported. Financial security programs have taken a similar turn away from the physical world into the digital realm. As online banking user pools grow and cybercriminals multiply, banks allocate more funds for cutting-edge digital protections such as blockchain, an advanced transaction-tracking technology designed to prevent fraud, according to Fortune.
These are just a few of the changes the IoT has ushered in. As connected technology grows more complex, more transformations are likely. Financial institutions big and small must prepare by finding visionary leaders who have the executive experience and innovative mindset to see them through the sectorwide shifts ahead. YES Partners can help. Our seasoned executive recruitment consultants can pinpoint top-level talent committed to embracing the next generation of banking.
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