Chapter 8: Digital Finance and the Future of Banks and Financial Services

Digital finance is revolutionising the financial sector in significant ways. Its role in shaping the future of banks and financial services is a topic of widespread interest in the policy and academic literature. This study examines the role of digital finance in shaping the future of banks and financial services. The study shows that digital finance innovations are disrupting banking and the nature of financial services. Financial institutions that will survive in the future must undertake digital transformation to compete for market share in new customer segments and to meet customers' changing needs and preferences. While nobody knows for sure what the future of banking and financial services will be in the distant future, the digital finance revolution will inevitably change the face of banking and financial services in the future. Regulation, technology and geopolitical factors could alter the future of banking and financial services.