Banking Tomorrow & Beyond

In the ever-evolving landscape of the banking industry, it's good to keep your wits about you and stay on top of the game. New terms are always popping up, such as neo-banking and open banking. One must stay on top of trends if they want to keep up with the visionaries of the world. Today, we are introducing one such visionary: a disruptor and futurist shaping the future of finance through insightful predictions and groundbreaking ideas. Allow us to introduce Brett King, a luminary in financial technology (fintech) and the mastermind behind the acclaimed book, 'Bank 4.0’.

Who is Brett King?

Brett King is not your typical financial expert; he is a dynamic speaker, author, thought leader, in a word a visionary who has been at the forefront of bringing in the digital disruption in banking. With his background in finance and passion for technology, King’s foresight is recognized internationally for predicting the transformative effects of technology on the financial services industry and the boom of the fintech industry. He's also the mastermind behind Moven, the first-ever mobile bank account you can download. Moven made history as the pioneer app-based neo-bank, offering cool features like applying for a debit card in the app, checking your financial health on the home screen, getting real-time receipts, and using contactless cards in the US. Now, Moven has transformed into a global Banking-as-a-Service platform, serving more than 20-30 million users worldwide. King has been featured on Fox News, CNBC, Bloomberg, BBC, Financial Times, Economist, ABA Journal, Bank Technology News, Asian Banker Journal, The Banker, and Wired magazine for his visionary observations. He also contributes regularly as a blogger to Huffington Post.

Why Brett King?

We anticipate valuable insights that could be instrumental in reshaping how banking and financial services are perceived in Nepal. King has presented keynote addresses at conferences across over 40 countries, engaging audiences from prominent organizations such as Google, Forbes, Oracle, The Economist, SAS, SWIFT, Bloomberg, American Banker, and such.

Brett King’s influence is internationally recognized and invaluable. Through his impactful podcasts, ‘Breaking Banks’ and ‘The Futurist’, King has been a key player in bringing about the current banking revolution. With his insights into the intersection of technology, customer experience, and banking, we expect Bankers Meetup 2024 to be a truly mind-blowing experience.

What to Expect:

Bankers Meetup 2024 promises an immersive, interactive experience for senior leaders in the banking industry. Brett King will discuss valuable observations on digital disruption, open banking, a customer-centric banking approach, and technological innovation in the banking industry, exploring their relevance to Nepal and becoming a 21st Century Financial Services Leader. With his ability to challenge and inspire conventional thinking, anticipate a truly new experience and a glimpse into the future of finance.

I’m sure we’re well acquainted with the idea of Man vs. Machine, but in the technological revolution and AI-fication (Artificial Intelligence) of resources, it has been further proved that it's not Man vs. Machine but Man with Machine. With humans adapting and increasing their capabilities as technologies advance, the bankers of now are working together with technology to create a synergy that brings about the seamless banking experience we all dream of.

This transformative era is none other than Bank 4.0, a visionary concept brought to the forefront by renowned author and futurist Brett King. In this exploration, we'll delve into the evolution of banking, guided by King's embedded thinking, and unravel the intricacies of Bank 4.0—the culmination of seamless technology integration into our daily financial lives.

Evolution of Banking: Bank 1.0, 2.0, and 3.0

Brett King's narrative of banking evolution aligns with the conventional phases: Bank 1.0, where physical branches were the focal point of transactions; Bank 2.0, marked by the advent of online banking and ATM integration; and Bank 3.0, characterized by the rise of mobile banking through smartphones.

In King's perspective, these phases represent a gradual progression toward a more connected and tech-centric financial world.

Bank 4.0: Embedded Banking in the Smart World

Central to Brett King's vision is the concept of Bank 4.0—a paradigm shift toward embedded banking and digitization of all banking services. This phase transcends physical constraints, seamlessly integrating into the smart world. Embedded banking is about providing financial services when and where needed, underlining the ongoing digitization of our planet. King envisions an interconnected ecosystem that offers unparalleled convenience and accessibility, redefining the very essence of banking.

King's idea of embedded banking goes beyond mere accessibility—it envisions an immersive financial experience deeply integrated into our daily lives, supported by advanced technologies like AI.

Emerging Capabilities: Apple Pay and Google Wallet

As we gaze into the future, King's foresight anticipates a surge in capabilities, exemplified by innovations such as Apple Pay and Google Wallet.

• Apple Pay: King appreciates the revolutionary impact of Apple Pay, where users can categorize transactions by type or location. This not only offers personalization but also transforms financial management into a more insightful and user-centric experience.

• Google Wallet: With a forward-thinking perspective, King acknowledges Google Wallet's predictive cash flow feature. By forecasting future cash flows, users are empowered with proactive insights into their financial health, aligning with King's vision of a more intelligent and user-friendly financial ecosystem.

AI-Powered Financial Services: Shaping the Future of Banking

King recognizes that the future of banking is intricately tied to advanced technologies, with AI taking center stage. The influence of AI, demonstrated by platforms like Chat GPT with its deep learning capabilities, extends into the realm of banking in Bank 4.0.

Imagine a generative force, providing users with personalized financial advice. Moreover, AI-driven security measures, such as enhanced biometrics, play a vital role. In China, facial recognition systems, analyzed within three minutes, elevate security standards significantly. Mobile payment systems, like Tencent's WeChat, utilizing facial recognition, exemplify a safer alternative compared to traditional card-based systems in the U.S.

Embracing the Era of Man with Machine

In conclusion, Brett King's conceptualization of Bank 4.0 marks a pivotal moment in banking history. As fintech, digital banking, and AI converge, King's embedded thinking guides us toward a future characterized by a seamless, secure, and intelligent financial ecosystem. In this era of Man with Machine, technology becomes a trusted ally in our financial journey, ushering in an age where banking is not just a service but an embedded, integral part of our daily lives.

“It is something I found that I really enjoy; bringing technologists and bankers together.” -Brett King

Banking has rapidly changed due to technology. Now, there is a need for an intricate and crucial balance between technology and banking. To stay abreast of global developments and avoid falling behind, examining current trends will help you understand the trajectory of the industry. Becoming a 21st-century digital services leader is the key to envisioning how the banking landscape will be shaped in the future. Examining upcoming digital banking trends and the hype over Artificial Intelligence (AI), we can assert that the trajectory is distinctly shifting toward a more digital and disruptive focus, given the changes AI promises to bring to the banking landscape.

Whenever a new innovation emerges, there are extremists who believe nothing will change, but they have consistently been proven wrong. Brett King shares this perspective in the banking world. Perhaps currently, we can't imagine letting AI be our financial advisors, but give technology 20-30 years, and our outlook will likely change. Brett King strongly believes in this transformation, evident in the rise of RoboAdvisors abroad and innovations like Apple Pay and Google Wallet, with their transaction categorization and predictive cash flow features.

Adaptations of First Principles Thinking

Much of what we’ve done with technology involves adapting the branch model to new technologies as they emerge. As mentioned in the previous article, it's not man vs machine but man with machine. However, a new type of banking emerged when the smartphone came into play, leading to Brett King’s Moven, the first mobile-only banking introduced in 2011.

Voice-based artificial technologies and smart glasses will likely further transform banking in the next 10 years. Adopting a first-principles thinking approach, solving problems will involve starting from scratch with the new technologies of the present. Similar to the shift from horse-drawn carriages to automobiles, where Karl Benz created a self-movable carriage from scratch, i.e., the automobile. Another product that did this is the iPhone, a complete change with the touch screen and system, setting new standards for the entire industry.

Shift in Customer Expectations

The same transformation can be expected in banking, where customer expectations will shift. In the next 10 years, plastic cards with mobile payment technology may not be required(i.e debit cards/credit cards); it could be similar to China's adoption of QR codes and facial recognition. Cash is being used less and less, and the shift to digital, as seen in China since 2014, is expected globally as people appreciate the convenience technology offers, leading to higher expectations.

Collaborations Opening up Avenues in AI

Uber partnered with a fintech company that made them the number one acquirer of small business bank accounts in 3 months, even though they didn't intend to become a bank. With Uber, drivers couldn’t sign up fast enough due to research showing that most drivers stopped at the entrance of the debit card number. Uber partnered with the fintech company Greendot, launching the company GoBank to provide drivers with accounts in real-time while signing up for Uber. Uber became the top acquirer of small business bank accounts in just 3 months. Uber didn't plan to become a bank, but it happened, suggesting a need for a similar innovative mindset in banking. With collaboration with fintech we can bring this into banking with AI.

In terms of AI, there are basic machine learning, artificial general intelligence, and AI smarter than humans. Expectations for the development of AI of the second kind, with the emergence of generative AI like ChatGPT, include a reduction in manual jobs as AI becomes adept at handling them. This allows bankers to focus on more crucial procedures. In China, AI is employed to learn customers' investment behavior, resulting in loans with less risk. This is Smart Banking, with AI integrated into bank accounts. WeChat Payment also for instance, eliminates the need for a traditional point of sale; merchants can simply download an app, put up a QR code, and accept payments. The procedures become more smooth and smart. This is a form of making banking more accessible.

The Future of Digital Lending

Then what about loans? How do we make them more accessible? Now, what if banks offered real-time loans? Imagine walking into a store to make a big purchase, but your salary is a week away. Adding AI to the equation, instead of alerting users of insufficient funds, AI could suggest the best loan option based on their capabilities, thereby solving a significant problem. This is how Brett King envisions the future design of credit, leveraging AI to analyze behavior and guide customers toward their needs.

Focusing on the Core Utility of Banking

Banking should evolve by not just taking existing products and placing them into new technologies (like plastic cards and digital screens) but by taking the core utility of banking and building it into the layers of technology. This is the ideology of Brett King as we can see in Bank 4.0. In the banking landscape, we already know what’s next, now the matter is of putting third principles thinking into application. More interesting knowledge and food for thought will surely be disseminated as Brett King delves into all this and more in further detail at the Bankers’ Meetup 2024. We will see then how Nepal can truly emerge as a 21st-century Financial Services Leader.