We’re in an era of interest rate rises, obviously, and consumers are rushing to refinance their loans. And it’s more competitive than ever for banks to retain their clients and customers. We have heard of the 10-minute loan and most recently the instant loan, where electronic verifications and signatures have made some approvals instantaneous. This degree of digitisation and automation is unprecedented. What digital solutions and innovations will banks focus on next?
Dylan: I think it’s fascinating, this space, even to look at the 10-minute mortgage and the race to get there. We’ve had the likes of TickTock, Nano, and kind of the smaller players kind of leading the charge, but now you also see the bigger tier one banks follow suit as well. So, I mean, this really is a classic case of digital disruption, and there’s kind of been multiple waves of digital disruption, especially within banking. So if we kind of think back about when I arrived in Australia about 12 years ago, everything was about digitising a channel. So this was kind of like that first wave of digital disruption within banking. Subsequent to that, we’ve had the second wave of disruption, which was really the onset of cloud-based technologies, so which has fundamentally changed the way that people manufacture and deliver product to organisations, but also importantly, they’re starting to open up broader ecosystems as well to really deliver value for the consumers. So if you kind of think about some of these emerging technologies that have been coming through with open banking regulation, it really starts to set the foundation for developing a process that has less friction and also automation as well. If we think about that, just talking about the 10-minute mortgage, those capabilities that are within that application approval process, we have these new fintechs that are providing some capability to onboard customers and KYC, and then we have open banking to feed that process and also credit decisioning, which has now been based around AI, all the conversation they’ve been talking about today. So it’s kind of bringing everything together to provide faster time to yes as well. In terms of emerging technologies and the next wave, I kind of see this third wave taking place as well. So this is really with the onset of blockchain, quantum computing, and even advancements in AI as well. So these are starting to really define a new set of use cases within banking. I think the one that’s been impacted mostly is payments, especially with blockchain. We’ve seen NAB a couple of days ago come to market about their stablecoin as well. So there’s this race for stablecoins, and that’s facilitating global instance transfers as well. So it’s really important, it’s cutting out the middleman. So providing value to both merchants and the consumers at the end of the day. And then there’s the Reserve Bank of Australia as well. So they’re also piloting this new program. And an example of one of those is NFC. So you can actually tap offline and get instant payments. So I mean, all of those are great within payments. The other one that I’m quite passionate about is hyper personalization as well. So we’re starting to see bigger data sets as well, better compute power, and even a new wave of say, for instance, core banking platforms as well that are providing a new means to manufacture. So you get all of those capabilities and you’ve got a really good capability to really drive hyper personalized products. And the other one is also behavioural products as well. So we’re gonna start to see real products innovation. One account number that will be with a customer for life. So we start to really see these interesting use cases come through and we can’t, we also have to think about the social side as well to this and this is around diversity, inclusion, and equity as well. And when you think about these credit decisioning engines, they’ve got natural bias in them as well. So I think there’s gonna be a lot of focus on that as well. And who knows, maybe in the next two years, we might see the five minute mortgage.
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