For financial professionals, the future is in the blockchain …
6 in 10 banking and insurance professionals believe that the blockchain will have an impact similar to that of the Internet on their activity, according to the recent study “The Future of Financial Services»Led by Cognizant, Marketforce and Pegasystems, three American research and consulting firms specializing in supporting business change.
For the purposes of the study, 500 senior executives in finance were asked about their vision for the future. Almost half of them (45%) believe that, combined with peer-to-peer lending offers, blockchain will totally change the business of banks. Beyond this very fashionable trend, other directions are emerging.
High expectations regarding the blockchain
The first trend that should move the lines, the blockchain fascinates the financial professionals interviewed as part of the study. 22% of them believe that within 5 years, their clients will manage the majority of their assets within a “blockchain portfolio”. They are 42% to estimate that it will be common for their customers to keep all of their personal data (including their identity papers) in a blockchain within 5 years.
Despite everything, this information remains to be put into perspective: it should be noted that more than a third (35%) of respondents have never heard of blockchain, and that only 42% say they understand the principle.
Another element that encourages us to take a step back from these results: more than 8 out of 10 respondents have no idea how their organization tackled the subject, and only 16% of them said that a dedicated team working on it.
Finally, the authors of the study highlight a number of very operational questions to be resolved in order to take the next step: the scalability of the blockchain (VisaNet processes 47,000 transactions per second, Bitcoin processes 7 in the same time frame), as well as access and standardization issues.
The potential of wearables as a means of payment
After the expected blockchain revolution, it is wearables and their use in financial transactions that are of interest to finance professionals.
Nearly three out of four respondents (73%) think they will integrate connected objects into their contact channels within 5 years. They are also 20% to estimate that within a year, it will be common for their customers to make payments via their wearables. This figure rises to 91% within 5 years.
It should be noted that for a large majority of respondents, it will be common to make payments via a smart TV (at 87%), as well as via connected equipment for the home (at 68%).
93% of them believe that it will be decisive for their organization to develop high added value services based on the data they collect, without specifying how they handle the problem internally. Thus, more than half of respondents believe that within 5 years, the majority of home insurance and health insurance will see their rates change based on the data collected on the insured. 8 out of 10 professionals expect a change in the value proposition from insurance, from a compensation model to a prevention model.
Self-service and personalization of the customer relationship
Finally, the third trend that stands out from the study concerns the personalization of the customer relationship. Here again, we perceive a discrepancy between the perception that professionals have of their ability to grasp the subject, and reality.
Indeed, three quarters of respondents believe that they will be able to provide a fully personalized offer to their customers within 5 years. They are even 83% to think that they will be able to foresee the needs of their customers.
At the same time, 85% say they have difficulty having a personalized view of their customers, and 80% find themselves facing problems in processing and analyzing the data they collect.
Another difficulty revealed by the study, that of meeting the high expectations of customers in terms of self-service. Only 38% of respondents say they can respond to this type of request through automation. At issue: the regulatory system, deemed too restrictive by 94%
** Methodology: more than 500 senior banking and insurance executives were interviewed as part of this study. There is no information concerning their country of origin, nor concerning the type of companies concerned by the study. Respondents are likely from North America.
SEE the full study: