In early 2017 Marketforce and Earnix surveyed 300 retail banking professionals from across the UK and Europe, working in customer experience, insight, operations, IT, strategy and sales & marketing, to understand the role of analytics in the new banking age. The �ndings present an industry on the cusp of deep and widespread change, driven by new data sources and mounting competition.

TIME FOR A BANKING REVOLUTION?

FORECASTING FUTURE COMPETITION IN BANKING

50% expect the majority of older consumers to do the same.

88% expect the majority of Millennials to be using services that o�er customers integrated access to their accounts across multiple banking providers while...

HOW WILL CUSTOMERS ACCESS THEIR ACCOUNTS IN THE FUTURE?

72% believe that as access to multiple accounts through a single online portal increases, the advantage of an existing customer relationship will diminish and it will become more di�cult for banks to cross-sell

HOW WILL BANKS NEED TO ADAPT?

75%

3/4believe the current model of cross subsidisation will become unsustainable over the next 5 years while...

31%believe it is already broken.1

of respondents agree that the use of data analytics to o�er value-adding, insight-based services to customers will become critical to maintaining margins over the next 5 years.

As a consequence

92%

This will be enabled by access to new reams of customer data through open APIs and the expansion of the Internet of Things....

83% also expect it to be common within 5 years for banks to o�er data analytics-based services to manage their lives, not just their �nances, more e�ectively.

93% expect these developments to revolutionise the potential of

analytics in banking.

of respondents predict that advances in analytics and the increasing availability of data will create a signi�cant resurgence in Personal Financial Management services

86%

1The Future of Retail Banking 2016 report

WHAT ROLE WILL DATA PLAY?

believe this will in turn lead to banks having to signi�cantly overhaul their pricing and value models in order to maintain market share over the next 5 years. In fact...

63% expect to see a signi�cant increase in competition in the banking industry over the next 12 months.

This will be magni�ed by the rise of Open APIs as...

8/10 expect a signi�cant increase in competition over the next 5 years as a direct result of the increasing regulatory drive towards open banking.