Bank 4.0: Banking Everywhere, Never at a Bank

by Brett King

The only way for regulators to guarantee incumbents stay competitive is to remove both the face-to-face and cloud platform constraints. By 2025, we could see most banks outsourcing identity to identity brokers like Facebook or the Aadhaar card. It simply doesn’t make sense for banks to be collectors and holders of identity data in the future. It’s far more likely banks will interface with identity services and just pass enough information across to verify the identity of the new customer is accurate. Not to mention that technology like software-based facial recognition is 15–20 times more accurate at identifying a customer than a typical face-to-face interaction19. A fact that would indicate face-to-face account opening is no longer safe—it’s probably statistically the single riskiest thing a bank could do in this day and age.