Online banks: what are the trends in 2019?

For several years now, online banks have occupied the media scene, but very curiously, their recent financial reports help to put their weight on the banking market into perspective. Thus, Orange Bank, Fortuneo, Boursorama Banque, Monabanq and BforBank achieved in 2017 an NBI of between 20 and 160 million euros. A figure that seems much lower than the income of a traditional bank. But even so, the online banking sector is seen as the most comfortable with a faster pace of innovation, leveraging more data and analytics, and digitizing processes. However, these efforts are proving insufficient to face increasingly tough competition against traditional banks. What to ask us then if the trends in 2019 will allow these banks to regain their cruising speed and restore their image.

The online banking industry is increasingly strategically and technologically driven to meet consumer expectations while trying to defend market share against a growing number of competitors. Thus, more and more French online banks are placing a high priority on the digitization of essential business processes and the reassessment of organizational structures and internal talents in order to better prepare for the future of the banking sector. This transformation illustrates the growing desire to become much more than an online bank, but a “digital bank”. After all, to choose the best online bank, the user will also necessarily refer to the innovations initiated by each establishment.

The importance of innovation and developing new solutions leveraging data, analytics, digital technologies has never been greater in this industry. We even see that French companies are innovating in terms of targeting, extending services, reconfiguring delivery channels, proactive advice, integrating payments and even trying their hand at applying blockchain technology.

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These efforts will only increase in 2019, as global finance and technology giants revolutionize the financial services arena. As part of these larger trends, online banks will also experiment with new mobile apps and voice gadgets to improve both delivery and contextual personalization. Ultimately, the bank user will be at the heart of all these solutions. As technologies evolve, online banking will continue to accelerate its investments in innovation and digital enhancements.

One of the most interesting trends in 2019 will be the continued movement towards predictive banking. For the first time, the banking industry can consolidate all internal and external data to create predictive customer profiles in real time. With rich, accessible and financially viable consumer data, online banks can not only know their customers, but also provide them with advice for the future.

The area of payments will remain one of the most dynamic areas of innovation in the online banking industry. Under the effect of the changing habits of Internet users and mobile users, innovation will continue to drive financial institutions, Fintech companies and technology giants. Thus, payment trends go hand in hand with the democratization of connected objects, e-wallets and contactless payment wallets, crypto-currencies and the blockchain .