what does the era of convergence mean to you?

Alexandra White recounts the conversations had in The Era of Convergence Documentary, and traces developments since

Navigating the new frontier of finance doesn’t come with a playbook. This next phase, The Era of Convergence, is rife with opportunities that transcend industry silos and welcomes an unparalleled degree of collaborative innovation. However, capturing such an expansive array of players could invite a detrimental conflict of interests; it is paramount we establish a commonality- a central point of investment- as this next phase begins.

so what is the era of convergence?

Traditional institutions are engaging with their consumer base in an increasingly digital fashion; AI is becoming a common sight across finance; and conversations around digital asset regulation are increasing in frequency; The Era of Convergence is centred upon this digitalisation. The narrative suggests a future in which, as aptly put by Dr Jane Thomason, “a bank isn’t going to be a bank”.

The importance of accessibility should not be undermined. Broadening the reach of your product is an elevation and growth tactic beyond compare; and it inherently invites a far more inclusive financial future.

but is this sustainable?

As highlighted by Katharine Wooller, we are witnessing a “phenomenal pace of change”. Financial technology is synonymous with dynamic development, but as the collapse of FTX reminded us, that doesn’t always equate to the creation of a long-term landscape. This rapidity, this excitement, The Era of Convergence, must be married with trust for it to represent a viable reality. Enter regulation. As alluded to previously, conversations on the matter are increasing; and they’re necessary to ensure The Era of Convergence doesn’t simply represent a fleeting trend.

The whole notion of what constitutes banking and finance is being turned on its head. The term disruptive is arguably becoming quite overused in the financial technology industry but it is incredibly apt in this situation. Disruption in this marketplace means, through a growth in digital adoption, we are seeing a betterment of efficiency, of the user experience, and greater accessibility.

The Era of Convergence Documentary featured a plethora of attuned and engaged voices that each presented their unique interpretation on the matter. This diversity of thought is catalysing technological implementation and ideation that shadows previous phases of development. But commonalities included a call for greater trust, a want for authentic efficiency, and a recognition that we have the opportunity to redefine finance. The definition may not be concise but history-in-the-making is never straightforward.

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EVENTS

The past few years have been particularly disruptive for banks. We've seen one of the most turbulent periods in human history, with several significant events adding complexity and strain on resources.

With no clear end in sight and an impossible to predict trading environment, a test-and-learn mentality is the only way banks can keep up with changing conditions and evolving customer needs.

In this article, we'll share three ways banks can use data to test, learn, and win in 2023.

Make a play for credit beyond cards

Credit card usage tends to increase during economic downturns, and Buy Now Pay Later (BNPL) is expected to account for as much as 24% of global ecommerce transactions by 2026. In addition, brands like Affirm, Zilch, and Klarna are targeting younger demographics with their flexible short-term lending offerings.

Fintech Week London shines a light on the most important and exciting issues in financial technology, starting with a two-day conference.

From high-street banks to challengers, technology giants to disruptors, this five-day event showcases the best that London and global fintech has to offer.

Learn more about Fintech Week London at www.fintechweek.london

Could traditional credit cards become a thing of the past?

Banks looking to compete in this space must revamp their offerings in line with changing customer expectations while taking advantage of the wealth of customer information they already hold. Using this data to test, learn, and quickly adapt based on demand will be crucial to success.

Use data streaming to keep customers safe and happy Better fraud detection means fewer false positives and a smoother customer experience. Unfortunately, while most banks can make fraud decisions in real time, they rely on siloed data and base decisions on incomplete data.

Let's say a customer is in New York for a shopping weekend. A bank may see higher than normal card usage and put a fraud block in place. Meanwhile, the customer's banking app knows that the customer is in New York, but the geolocation isn't synced with the transactions because they get stored on different systems.

With an event-driven core banking platform, data gets streamed to one integration point. So the bank has a single, up-to-the-minute view of all customer activity that will help show if the transactions made in New York were legitimate.

Reward customers on more than just savings

Higher interest rates have seen banks begin to battle on savings offers. To stand out and offer a more competitive proposition that increases customer loyalty, banks need to reward across all their products, and not just savings.

It's easy for customers to keep switching savings accounts to the current market leader. But if moving savings meant losing perks like a mortgage discount, and a reduced annual credit card fee, customers would be happier with their current offer and less likely to move.

Banks need real-time visibility across their entire product portfolio to do this, removing the barriers that exist between product lines. Learn more in our blog about becoming the bank that customers love.

Pivot based on changing conditions

During turbulent times, it's vital that banks can understand what customers need, as people may rely on their banks more than ever. The ability to move quickly, run tests, and make data-driven decisions is key.

Cloud-native core banking platforms, like 10x SuperCore®, enable the jump to real-time data, so that banks can embrace the power of data across their entire business. To learn more, get in touch with the team at 10x today