The Future of Banking is Already Here

I've heard it said that people have an average of 70,000 thoughts per day. But few, if any, involve a bank. Banking is a means to an end and is often hidden from view. Yet our services surface at pivotal moments in customers' lives: going to college, getting a job, buying a home, saving for retirement. Every day, we try to get those key moments right and to guide customers in the micro moments of their lives, so they're able to make the best financial decisions.

When it comes to banking, customers' basic needs haven't really changed much in centuries. Borrow, spend, save, invest, and protect – that's what our customers want to do with their money. What has changed is the way that those needs are being met – when, how, by whom, and in what context - an event, an activity, or a thought. How do we help people bank while they're living their lives? How should our industry adapt to meet the needs of our increasingly connected and mobile customers? What if banking becomes invisible and seamlessly interwoven with health, time management, leisure and other parts of daily life?

The FinTech revolution is taking us in that direction, with startups and other disruptors leading the charge. But, banks should not be underestimated or dismissed. At Citi, we have a consumer-centric philosophy focused on meeting our customers wherever they are and taking them to wherever they want go. To do this effectively, we're embracing "Fintegration," where we bring the best of the FinTech ecosystem directly to customers. As we look ahead, I'm confident that we're focusing on the right things but we must continue to seek out and enable smart partnerships to move at the speed of FinTech.

So, how will banking change in 2017 to keep up? Here are the three biggest areas to watch for:

• Identity Management: The new trust economy is upon us. Whom you trust, where you trust and how you trust will become central to a value exchange decision between a consumer and another party. Banks will increasingly become custodians of customers' identities by enabling them to safely exchange and transact with peers and institutions with confidence. The role of our industry will be to hold their personal data, but only share what is necessary for the desired exchange.
• Open Banking, Globally: The unbundling of financial services has been much discussed in FinTech circles – customers turning to apps for services, like Paypal for payments and Personal Capital for wealth management. But in the year ahead I think a rebundling will begin, much like the media and commerce sectors. Individual banking transactions will become interwoven in the fabric of our daily lives, happening when and where they need to. Banks will become the anchors that organize collaborations, encourage partnerships with startups, foster cross-industry initiatives, and facilitate exchange directly with and among consumers. Creating an innovation platform and transforming core banking systems will be paramount to enabling this.
• Conversational AI / Natural Language Servicing – Banks will learn to transcend traditional touch-points and products to create a more holistic relationship with customers, engaging with them on their terms and in their language and focusing on their goals, aspirations, and definitions of value.

These concepts will carry weight beyond 2017 because they're foundational to how the financial services industry moves into the next decade. We're still built to serve stable business models in a predictable world, but over the last 30 years our systems have been disrupted.

How do we reboot and reshape our sector to support today's customer expectations? As we innovate, we need to be very deliberate about choosing the stepping stones that will take us from today to the future. It's an exciting time and I'm thrilled to be part of the change.