Substance of banking services and their forms of development under context of technology disruption

Abstract

History has shown that technology has played a critical role in shaping the forms of banking
service without changing its substance- maximizing customer experience and increasing financial
sustainability with emotionally personalized and real-time services. Based on the idea suggested
by Brett King (2018), this article develops a framework of change in banking service forms in line
with underlying conditions such as technology absorption, market competitiveness, application of
technology in developing distribution channels from physical branch to digital space or designing
frictionless services... and especially the legal framework’s constraints. To specify, this article points
out that the key regulation regarding e-Know-Your-Client (eKYC), information sharing mechanism,
sandbox testing, cloud storage or blockchain-based value exchange mechanism and delegation to
virtual assistants... should be adjusted appropriately to fit the situation of each country. Having to keep
balance between benefits and risks relating to each degree of regulation openness, the implications of
financial inclusion is key in establishing the policymakers’ determination toward innovation.