GAFAM – the greatest threat to traditional banking
Traditional banks also continue to face mounting pressure from digital-first rivals and in particular Big Tech giants such as Google, Apple, Facebook (Meta), Amazon and Microsoft, with almost half of consumers revealing they are interested in opening bank accounts with such players.
Banks recognise the threat with a third of bankers (36%) judging such tech players as “the greatest threat to our business”, according to the Sopra Steria survey, carried out for the third consecutive year in partnership with Ipsos and Forrester, in order to asses banks’ digital maturity and customer expectations.
Traditional banks are responding to this threat by investing heavily in emerging technologies, with 45% reporting they are planning to increase investment into tech such as chatbots, augmented/virtual reality, and AI-enabled digital assistants, with 35% reporting they will maintain existing investment levels.
AI stands out as a lynchpin in this strategy, as a key mechanism to analyse the exponentially expanding volume of customer data, and provide the high level of personalisation demanded by consumers, and also to drive improved efficiency by boosting internal processes. The goal is not for AI to replace staff but to usher in the era of the Augmented Advisor, providing employees with better insight to guide bank customers.