Pub. 8 2018 Issue 2

26 www.azbankers.org traditional consumer banking offerings and some key capital market products as well. As a consequence, wealth management services could become the anchor for customer relationships in critical segments, especially among the mass affluent. The key to this transformation is likely not only to continue to strength- en core digital advice technologies. It will also rapidly expand invest - ment in deeper and richer data sets, self-learning algorithms to drive critical customer-facing activities like chat bots, or more sophisticated and customized investment decision-making. These digitization and automation initiatives can also contribute to greater advisor productivity 57 and help solidify customer relationships. Next-gen, intelligent, and comprehensive robo platforms can also be- come central to the distribution of even non-wealth products, such as mortgages, CDs, or credit cards. Even as firms experiment and expand digital capabilities, firms should also work to make robos a powerful, tangible, and differentiated representation of their brand. Customers might increasingly view these digital interactions as the focal point of reference for their varied financial needs. w Originally published at https://www2.deloitte.com/us/en/pages/finan - cial-services/articles/banking-industry-outlook.html Endnotes 1 Editorial Board, “Euro-Zone Tapering Is a Delicate Task,” Bloomberg View, October 25, 2017. 2 Ibid. 3 Buttonwood, “Globalisation Backlash 2.0,” Buttonwood’s Notebook (blog), The Economist, July 27, 2016. 4 HSBC, “Fintech Can Help Banks With Stiffer Compliance,” press release, June 23, 2017. 5 John Heltman, “Role Reversal: US Leads Race to Bottom in Global Bank Rules,” American Banker, September 18, 2017. 6 Office of the Comptroller of the Currency, “OCC Solicits Public Comments on Revising the Volcker Rule,” press release, August 2, 2017. 7 Stephen Ley and Steven Bailey, “PSD2 Opens the Door to New Market Entrants: Agility will be Key to Keeping Market Position,” Deloitte UK, March 2016. 8 Cindy Chan, Natasha de Soysa, David Strachan, Dominic Graham, and Richard Burton, “Senior Managers Regime: Individual Accountability and Reasonable Steps,” Deloitte EMEA Centre for Regulatory Strategy, April 2016. 9 2016 Ovum ICT Enterprise Insights Survey. 10 Gartner, “Forecast: Enterprise IT Spending for the Banking and Securities Mar - ket, Worldwide, 2015-2021, 3Q17 Update,” October 30, 2017, https://www.gartner . com/document/3821565?ref=ddrec. 11 Val Srinivas, Urval Goradia, and Richa Wadhwani, “Managed Services: A Cata - lyst for Transformation in Banking,” Deloitte Insights, March 22, 2017. 12 Edward Hida, “Global Risk Management Survey, 10th Edition,” Deloitte In - sights, March 2, 2017. 13 Ibid. 14 Rob Galaski and R. Jesse McWaters, “Beyond Fintech: A Pragmatic Assessment of Disruptive Potential in Financial Services,” World Economic Forum and Deloitte, August 2017. 15 Ibid. 16 Ibid. 17 Jim Eckenrode and Val Srinivas, “Disaggregating Fintech: Brighter Shades of Disruption,” Deloitte Center for Financial Services, June 2016. 18 By “automation” we mean machines and tools powered by computing and artifi - cial intelligence that can now do tasks hitherto done by people. 19 Chanyaporn Chanjaroen, “Ex-Citi CEO Says 30% of Bank Jobs at Risk from Technology,” Bloomberg, September 23, 2017. 20 Irving Wladawsky-Berger, “As Automation Anxiety Grows, Remember We’ve Been Here Before,” CIO Journal, Wall Street Journal, September 1, 2017. 21 Val Srinivas, “The Future of Automation in the Banking Industry: What Can We Learn From ATMs?,” Deloitte Quick Look Blog, July 19, 2017. 22 John Hagel, Jeff Schwartz, and Josh Bersin, “Navigating the future of work: Can We Point Business, Workers, and Social Institutions in the Same Direction?,” Deloitte Review, Issue 21, July 31, 2017. 23 Josh Bersin, Bill Pelster, Jeff Schwartz and Bernard van der Vyver, “Rewriting the Rules for the Digital Age: 2017 Deloitte Global Human Capital Trends,” Deloitte Insights, February 27, 2017. 24 Gerald C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron, and Natasha Buckley, “Achieving Digital Maturity: Adapting Your Company to a Changing World,” Deloitte Insights, July 13, 2017. 25 DBS, “DBS to Invest SGD20 Million Over Five Years to Transform Employees Into Digital Workforce, in Support of Singapore’s Aim to Be Smart Financial Cen - tre,” press release, August 21, 2017. 26 Telis Demos and Christina Rexrode, “Wealthier Depositors Pressure Banks to Pay Up,” Wall Street Journal, October 24, 2017. 27 David Bolton, “61% of People Access Mobile Banking on a Regular Basis,” Applause (blog), February 1, 2017. 28 Val Srinivas, Steve Fromhart, and Urval Goradia, “First Impressions Count: Improving the Account Opening Process for Millennials and Digital Banking Customers,” Deloitte Insights, September 6, 2017. 29 Penny Crosman, “When Your Teller Is Also Your Digital Banker,” American Banker, September 21, 2017. 30 Zhuang Qiange and Jiang Xueqing, “Banks Take Bold Step Forward With Face Tech,” China Daily, October 9, 2017. 31 Margaret Doyle, Rahul Sharma, Christopher Ross, and Vishwanath Sonnad, “How to Flourish in an Uncertain Future: Open Banking,” Deloitte UK, 2017. 32 Antoine Gara, “Wall Street Heavyweight Goldman Sachs Launches Its Consum - er Lending Platform Marcus,” Forbes, October 13, 2016. 33 Thomas Hale, “US Banks Eye Europe’s Non-performing Loans,” Financial Times, July 19, 2017. 34 Cindy Li, “China’s Recent Efforts to Deal with Stressed Loans,” Federal Reserve Bank of San Francisco, June 28, 2017. 35 Ryan Tracy, “US Bank Regulators Propose Changes to Capital Rules,” Wall Street Journal, September 27, 2017. 36 “3Q 2017 Middle Market Indicator,” National Center for the Middle Market (press release), accessed on November 16, 2017. 37 JPMorgan Chase & Co. 2017 Investor Day Presentation of the Commercial Banking division, February 28, 2017, https://www. jpmorganchase.com/corporate/ investor-relations/document/cb_investor_day_2017.pdf. 38 Glenda Korporaal, “NAB Acts on Simplifying Small Business Contracts,” Australian, October 5, 2017. 39 Eric Platt and Nicole Bullock, “US Company Debt Sales Power Ahead as Bor - rowing Costs Drop,” Financial Times, September 8, 2017. 40 Martin Arnold, “European Banks to Launch Blockchain Trade Finance Plat - form,” Financial Times, June 26, 2017. 41 Robin Wigglesworth and Joe Rennison, “Goldman Expands Algorithmic Corpo - rate Bond Trading,” Financial Times, August 16, 2017. 42 Martin Arnold and Laura Noonan, “Robots Enter Investment Banks’ Trading Floors,” Financial Times, July 6, 2017. 43 Madison Marriage, “Mifid II Drives US Investment Industry Frantic,” Financial Times, August 6, 2017. 44 “Final Report Part Two: A Call to Action,” Faster Payments Task Force, July 2017. 45 Stacy Cowley, “Cash Faces a New Challenger in Zelle, a Mobile Banking Ser - vice,” New York Times, June 12, 2017. 46 Peter Jones, “18 Months on – Impact of the Interchange Fee Regulation on the European Union Cards Market,” European Payments Council, June 8, 2017. 47 Ben Steverman, “Credit Card Rewards Are Playing Harder to Get,” Bloomberg, August 4, 2017. 48 “Payment Card Use Sees Double-digit Global Growth in 2016,” Mobile Pay - ments Today, May 19, 2017. 49 Venture Scanner data from January 1 to September 18, 2017. 50 Julia Monti, “Mastercard Welcomes Vocalink as Deal Officially Closes,” Master - card press release, May 2, 2017. 51 Noor Zainab Hussain, “US Card Firm Vantiv Goes Global with $10 Billion Worldpay Buy,” Reuters, July 5, 2017. 52 “Collision or Collaboration: What’s on Your Payments Radar?” Deloitte, 10th edition, October 2017. 53 Tanya Andreasyan, “UBS Launches SmartWealth Digital Platform in UK,” Banking Technology, March 6, 2017. 54 Gauthier Vincent et al, “The Digital Wealth Manager of the Future,” Deloitte, March 2017. 55 Sophia Imeson, “FCA Annuity Provider Rules to Encourage Consumers to Shop Around,” Pensions Expert, November 28, 2016. 56 Jamie Hopkins, “New Fiduciary Rule for Financial Advisors Moves the Needle, But in Which Direction,” Forbes, June 14, 2017. 57 Richard Henderson, “Wealth Managers Play ‘Robo Advisers’ at Their Own Game,” Wall Street Journal, March 30, 2017. 2018 Banking Industry Outlook w Continued from page 25