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What lifestyle banking means for the future of banking

Most people today maintain an active lifestyle that is defined by a routine or set of routines. Moreover, more and more aspects of life are continuing to become part of our lifestyles, and banking is no different. As the idea of banking evolves from a simply-structured financial organization focused on money transactions to something integrated (in one way or another) into nearly everything we do, banking is truly becoming a lifestyle in and of itself. But what exactly does this mean for the future of banking?

To put it simply, it means that financial institutions are taking advantage of technological advances. Instead of being a physical location where one goes to make deposits and take withdrawals, financial institutions are now largely online places that help one better use finances, maintain a standard of living and even obtain resources to enrich life experiences. Not only that, but greater customization is likely leading to a future where consumers will define what products and services they want and need (as opposed to financial institutions making these decisions and having a relatively limited offering). To remain competitive, financial institutions will have to rethink their models of doing business and adopt a bundling (or “value meal”) approach in which discounts are provided for using more products/services. In other words, financial institutions are heading into a future where they may well be unrecognizable to the financial institutions of yore. Consumers are truly becoming king, and financial institutions need to reinvent themselves to fit into this new kingdom.

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