How banking will change in the next 10 years: the opinions of market experts

Alyona Shevtsova
3 min readNov 18, 2021

Global trends indicate that to succeed in banking, it will be necessary to develop new technologies, be flexible and take experimental business models while putting customers at the centre of every strategy. Today, we take a closer look at what’s in store for global and Ukrainian banking.

Chris Skinner, an independent financial market observer, believes that shortly:

● Retail banking will focus on integrating digital systems into its operations;

● commercial banking will focus on digital currencies for global trade;

● investment banking will focus on tokenization of equities and trading.

We are noticing the introduction of new technologies in almost every area of human activity. The financial services industry is also moving forward, and so far there are no factors that can reduce the progress that has been made. The widespread investment in the latest technology and fintech is now at its peak. Consequently, traditional banking organizations are forced to move towards more progressive business models.

Over the past decade, banks have separated financial services and offered very personalized products, such as a soft loan or the purchase of insurance for an overseas trip. Such offers are based on analyzing data about each customer. Now, when many of them became huge fintech companies, they offer enhanced financial services to better engage with customers and gain their loyalty. That’s what Jim Marous says in his research:

● Most believe the industry will consolidate by 25% by 2025;

● 25% of bankers believe branches will disappear by 2025;

● only 1 out of 10 are confident that blockchain technology will be used by most banks;

● only 6% assume that cryptocurrencies will be used by most banks;

● more than ⅔ of respondents believe that by 2030 at least two fintech companies will be among the top ten providers of financial services.

It is too early to conclude, especially in the long term. We can only assume that the future of banking services will be very different from what it is today. Banks are facing changing consumer expectations, new technologies, and business models. That is why they have already begun to develop strategies that will prepare for banking as it will be in 10 years.

Forrester’s analysts believe that the banking of the future will be invisible, connected, insights-driven, and purposeful. Leaders will use technology and try to understand customers more deeply to deliver financial services at the right time. Staying relevant to banks means being present in products and ecosystems that their customers like. People will choose those that align with their worldview and values.

For Ukrainian banks, the year 2020 was a turning point when they realized the advantages of digital banking over traditional banking. Many had to change their development vector right on the fly and implement digitalization amid the pandemic. And even despite the difficult situation, the domestic economy not only withstood but also received an improved forecast from the World Bank for the next few years.

The above forecasts are supported by statistics on the state of the banking sector from the Ministry of Finance of Ukraine:

● Record lending over the past few years;

● growth rate accelerated to more than 30%, exceeding pre-crisis figures;

● increase in mortgage loans to 16% for the quarter;

● loan portfolios in the corporate segment added 40%;

● annual hryvnia deposits grew by 15%.

Thus, the profitability of the banking sector surpassed the indicators of the pre-crisis year of 2019. The third quarter brought banks more than 21 billion hryvnias of profit. Compared to 2020, we see an increase in indicators by 1.5 times. There is no way out of digital banking, but what forms it will take — remains to be seen. Users already receive comfortable, free, and almost seamless service from banks. In the future, we can hope for an entire ecosystem, where we will pay for goods, services, entertainment, and more.



Alyona Shevtsova

CEO of the international payment system LEO, the shareholder of IBOX Bank