With regards to competition, it’s a difficult one – should banks be fearing the challengers? Or tech companies who are making forays into the financial services? Whatever happens, as ever, banks have to be on the front foot. Here are some of the trends we think will be big in 2019:
- Fines for data breaches at UK financial services institutions will continue to rise, as the detection of GDPR breaches proliferates and the Information Commissioner’s Office (ICO) comes down hard on errors and a lack of investment in cybersecurity
- Banning Orders under the Senior Managers and Compliance Regime will increase again as the FCA seeks to leverage personal accountability in its push for improvements in conduct
- Challenger banks will seek to either tie up with the big banks and consultancies or will become acquisition targets as the big names seek to leapfrog technology investments and leverage their scale in a bid to maintain their dominance
- US regulators will continue to target European banks for historic infringements around sanctions compliance – we have recently seen BNP and SocGen hit; others will follow as the net widens
- The FAANGS (Facebook, Amazon, Alphabet, Netflix and Google) – will start to sink their teeth into banking and financial services, leveraging their customer bases, analytics capability and big data to offer competitive products backed by funky tech that bypass the high street banks.