Banks Must Adapt to Changing Technological Landscape

Leveraging nearly two decades of experience in international banking, Julio M. Herrera Velutini is chairman of the board for a prominent bank based in Puerto Rico. In this role, Julio Herrera Velutini seeks to grow the bank amid the challenge of rapidly changing technology.

Innovation in technology has affected all aspects of life, including banking. In a recent report on retail banking with an eye toward 2020, PwC detailed a list of challenges banks will continue to face unless they adapt to the changing landscape in the finance industry led by technology such as mobile banking. One of PwC’s predictions for 2020 is that mobile devices will be used as frequently as debit and credit cards as the main medium for consumer payment. Cards will remain popular since they don’t require power, but the ability of mobile devices to perform cross-network payments will facilitate drastic change in how consumers pay for products and services.

Additionally, PwC predicts a significant transformation for branch banking, in which traditional branches will become near obsolete due to the ubiquity of and extensive services offered by online banking. In order to remain competitive, branches may have to evolve to become advisory and engagement hubs or smart kiosks that primarily offer financial advice and education. PwC anticipates a branch decline of at least 20 percent by 2020.