# Market Gravity predicts banking and finance industry trends for 2017 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-12-22 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Banking and Finance Predictions for 2017: Blockchain, Meta Description: Discover how blockchain, robo-advice, and frictionless retail are set to revolutionise banking and finance in the coming year. Stay ahead of the curve! URL: https://financedigest.com/market-gravity-predicts-banking-and-finance-industry-trends-for-2017html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/0o1a9193-2769-1736844308649-compressed.jpg) Technology will continue to be one of the biggest disrupting forces in the banking and finance sector in 2017, with innovations such as blockchain, chat bots, robo-advice and virtual reality finally breaking through. In 2016, we saw the time it takes to go from breakthrough technology to mass market application reducing as technology disruptors reshaped big business practice, and this breakneck pace doesn’t show signs of abating as we enter a new year. Gideon Hyde co-founder of Market Gravity, the proposition design consultancy, shares his predictions for 2017 and advises what business leaders in the banking and financial services sectors should be doing to recognise ‘tomorrow’s business’ and ensure they enhance their offerings to stand out in this increasingly competitive marketplace. **Blockchain** [Silicon Valley](https://www.financedigest.com/kpmg-stands-by-audits-of-silicon-valley-bank-and-signature-bank-ft.html "KPMG stands by audits of Silicon Valley Bank and Signature Bank – FT") investor Marc Andreessen cites blockchain as “one of the most fundamental inventions in the history of computer science. Put ‘simply’, blockchain uses complex cryptography to ensure that financial transactions can be verified and can’t be tampered with, with minimal third party involvement. Bitcoin is the best known application of blockchain so far, but its potential extends far beyond digital currencies. The blockchain process makes error and fraud easier to spot and it can remove the need for a middleman, thereby reducing costs. Indeed, experts say it is [set to disrupt](https://www.financedigest.com/factbox-europes-travel-disruption-set-to-continue-as-summer-ends.html "Factbox-Europe’s travel disruption set to continue as summer ends") every industry where transactions and trust are key. **Robo-advice** An increasing number of [banking organisations are developing and launching](https://www.financedigest.com/exclusive-china-regulator-launches-new-probe-into-banks-property-loan-exposure-sources.html "Exclusive-China regulator launches new probe into banks’ property loan exposure – sources") robo-advice services for customers. Robo-advice involves replacing face-to-face advice with online, automated guidance and execution – not from an actual robot, but from an algorithm which engages with customers to create an improved experience. The savings and [investment sector](https://www.financedigest.com/conocophillips-plans-1-1-billion-investment-as-norway-oil-sector-heats-up.html "ConocoPhillips plans .1 billion investment as Norway oil sector heats up"), in particular, has adopted this new technology to engage with customers in a way that adds value and helps create an improved brand experience. Take the Standard Life Financial Butler, for example; an automated chat-based app that provides customers with a new way to explore and interact with their pensions and investments, make changes to their account information and get quick and easy access to Standard Life experts. While its [growing popularity](https://www.financedigest.com/growing-popularity-of-horseback-riding-to-bolster-sales-of-hoof-boots-market-fact-mr-report.html "Growing Popularity of Horseback Riding to Bolster Sales of Hoof Boots Market: Fact.MR Report") could mean the beginning of the end for traditional face-to-face advice, there is an opportunity for advisers who are willing to consider incorporating these automated services into their offering. Major [banks](https://www.financedigest.com/how-is-green-finance-reshaping-the-banking-industry.html "How is green finance reshaping the banking industry?") are already beginning to do this by targeting potential customers considering their first steps into financial advice. This low-cost stepping stone can help get customers on side ready for when they may require more comprehensive guidance. **Frictionless retail** With the [growing popularity of the new megatrend known as ‘frictionless retail’, wallets, checkouts and queues could be set to be things of the past](https://www.financedigest.com/retail-shelving-system-market-growing-at-a-cagr-of-8-8-through-2021-to-2031-persistence-market-research.html "Retail Shelving System Market Growing At A CAGR Of 8.8% Through 2021 to 2031: Persistence Market Research"). Actually, frictionless retail has been on the cards since around 2005, when Apple introduced a mobile POS system across its US stores which allowed staff to roam the shop floor taking [payments in order to make the customers’ shopping experience](https://www.financedigest.com/how-netflix-justeat-and-uber-raised-the-bar-for-the-payments-experience.html "How Netflix, JustEat and Uber raised the bar for the payments experience") quicker and less painless. However, it now seems to be one of the biggest buzz phrases in the sector with retailers, payment providers and tech [developers working](https://www.financedigest.com/property-development-exit-loans-what-they-are-how-they-work.html "Property Development Exit Loans: What They Are, How They Work") together to create more ways to eliminate friction. One of the [latest innovations](https://www.financedigest.com/financial-technology-fintech-how-to-navigate-the-latest-trends-and-innovations.html "Financial Technology (FinTech): How to Navigate the Latest Trends and Innovations") doing just that is the Amazon Dash button, which makes re-purchasing and paying possible with the simple push of a button. Satisfying the rising demand for contactless payments and [digital wallets](https://www.financedigest.com/digital-wallets-bring-value-to-banks-and-retails.html "digital wallets") such as Apple Pay, will continue to enable payment providers, banks and tech developers to increase sales, improve the customer journey and build brand loyalty. **Chat Bots – the rise of the chat interface** More and more financial [services and banking companies are using chat bots to hold automated](https://www.financedigest.com/in-a-world-of-automation-what-does-the-future-hold-for-uk-financial-services-workers.html "In a world of automation, what does the future hold for UK financial services workers?") conversations with customers to help them make decisions and respond to queries. The advantages to banks considering using them are that they are less expensive to produce than apps, they help raise brand awareness and they can save human resourcing costs, [effectively replacing the work of customer](https://www.financedigest.com/5-simple-steps-to-an-effective-customer-complaint-response-strategy.html "5 Simple Steps to an Effective Customer Complaint Response Strategy") service agent. The prospect of bots actually [replacing human](https://www.financedigest.com/human-robotics-will-robots-replace-bankers.html "Human Robotics: Will Robots replace Bankers?") jobs is still a way off, however. Banks, payment providers and financial services organisations should look at augmentation rather than replacement. Bots can help make employees’ lives easier by taking away some of the strain but, when enquiries become more complicated, [customers will still require the help of a human](https://www.financedigest.com/customized-innovation-to-drive-the-human-microbiome-market.html "Customized innovation to drive the Human Microbiome Market") being. **Voice and motion control interfaces** [Recent developments](https://www.financedigest.com/title-dystrophic-epidermolysis-bullosa-treatment-market-to-witness-notable-growth-with-recent-developments-and-forecast-by-2030.html "Dystrophic Epidermolysis Bullosa Treatment Market to Witness Notable Growth with Recent Developments, and Forecast by 2030") in user interface (UI) – the way human beings interact with a device – are now offering us much more attractive options than a simple keyboard and a mouse.  Take voice recognition technology, for example, [Apple’s Siri – a personal assistant application designed to work](https://www.financedigest.com/apple-works-with-chinese-suppliers-for-latest-iphones-nikkei.html "Apple works with Chinese suppliers for latest iPhones – Nikkei") through IOS. And, launched much more recently, Amazon’s Echo. Using [advanced voice technology](https://www.financedigest.com/specialty-printing-consumables-market-rising-adoption-of-advanced-technologies-to-bolster-markets-growth-prospects.html "Specialty Printing Consumables Market – Rising Adoption of Advanced Technologies to Bolster Market’s Growth Prospects"), ‘Alexa’ can tell you the time, deliver news updates, play your music choices, notify you of your day’s appointments and much more. Another emerging UI was first foretold by Tom Cruise in the 2002 [sci-fi movie](http://www.hongkiat.com/blog/sci-fi-artwork/), Minority Report when he was seen donning his magic gloves and gesturing at a screen to manipulate images and datasheets on his computer system. Now motion control, or gesture interface, is actually beginning to show us a future where computer systems will be able to interpret human hand gestures and emotion [recognition from the face](https://www.financedigest.com/in-apples-shadow-google-takes-new-route-to-face-recognition-on-pixel-phones.html "In Apple’s shadow, Google takes new route to face recognition on Pixel phones") via mathematical algorithms. **VR and AR** Immersive technologies such as virtual reality (VR) and [augmented reality](https://www.financedigest.com/augmented-reality-ar-virtual-reality-vr-to-dictate-the-growth-of-temporal-implants-market.html "Augmented Reality (AR)/Virtual Reality (VR) to dictate the growth of Temporal Implants Market") (AR) have started to hit the mass market (see Facebook’s Oculus Rift) but the way in which they will affect banking businesses has yet to evolve. In 2017, the [consumer and business content and application](https://www.financedigest.com/phosphate-conversion-coatings-market-to-surpass-us-2-35-bn-as-applications-in-consumer-electronic-grows-fmi.html "Phosphate Conversion Coatings Market to Surpass US$ 2.35 Bn as Applications in Consumer Electronic Grows: FMI") of VR and AR will become clearer. VR and AR has huge potential to control a flow of information to the consumer, [integrated across mobile](https://www.financedigest.com/effective-integration-will-improve-mobility-in-the-tl-sector-over-the-next-five-years.html "Effective Integration Will Improve Mobility in the T&L Sector Over the Next Five Years"), wearable technology and IoT etc. allowing rooms and spaces to connect with consumers, virtual worlds and conversations. It’s possibly one of the most exciting [areas to be working in for finance](https://www.financedigest.com/4-areas-of-finance-you-should-be-watching.html "4 Areas of Finance You Should Be Watching") and banking brands right now. Gideon is one of the co-founders and a partner of [Market Gravity and is passionate about creating growth](https://www.financedigest.com/increasing-trend-of-online-shopping-to-create-new-growth-opportunities-for-stretch-sleeve-and-heat-shrink-labels-market-says-tmr.html "Increasing Trend of Online Shopping to Create New Growth Opportunities for Stretch Sleeve and Heat Shrink Labels Market, Says TMR") and innovations businesses across the UK and beyond. He is an expert in helping big businesses [launch significant new ventures into the marketplace and take them to scale](https://www.financedigest.com/the-animal-feed-micronutrients-market-to-scale-through-new-launches.html "The Animal Feed Micronutrients Market To Scale Through New Launches"). He led the programmes to develop and grow npower’s [home energy](https://www.financedigest.com/powered-by-poo-ten-weird-and-wonderful-alternative-energy-sources-that-could-soon-be-powering-our-homes.html "POWERED BY POO: Ten weird and wonderful alternative energy sources that could soon be powering our homes") services business, to launch B for Clydesdale and Yorkshire Banking Group and to design and launch Retiready, Aegon’s digital retirement service. Gideon is one of the co-founders and a partner of Market Gravity and is passionate about creating growth and innovations businesses across the UK and beyond. He is an expert in helping big businesses launch significant new ventures into the marketplace and take them to scale. He led the programmes to [develop B for Clydesdale and Yorkshire Banking Group and to design](https://www.financedigest.com/the-developments-in-the-fashion-industry-have-driven-the-demand-for-the-garment-design-and-printing-industry.html "The Developments In The Fashion Industry Have Driven The Demand For The Garment Design And Printing Industry") and launch Retiready, Aegon’s digital retirement service. To find out more about Market Gravity, visit [www.marketgravity.com](http://www.marketgravity.com/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---