The world has encountered major financial crisis and many banking institutions failure over the last decade. The post-crisis regulatory frameworks have forced the financial institutions to adjust their business models accordingly. Technology here has played a major role in paving way for more advanced methods of supervision and thus making the banking activities more accountable.

1. FinTech will drive the new business model
   In a recent PwC Global FinTech Survey, industry respondents said that a quarter of their business, or more, could be at risk of being lost to standalone FinTech companies within 5 years.
   Global investments in FinTech tripled in 2014, reaching more than $12 billion. In comparison, banks spent an estimated $215 billion on IT worldwide in 2014, including hardware, software, and internal and external services. The FinTech spending will really make an impact for its low spending and higher customer satisfaction.
   The importance of service had been so far overlooked. The banks and the financial institutions have for long served their customers with products and most dominantly cared about making their own profits. The emerging startup culture has made customer satisfaction an inevitable part of their service. The customers seem to be more satisfied and empowered by availing such services. This has also made the infrastructural bosses realize that they can make good use of the innovations done by startups in this field and implement some of it, like the case of SBI with YONO app.
2. The sharing economy will cover the financial system as well.
   The economy will move from sharing taxis and hotel rooms to sharing financial services, i.e. technology will bring in place the providers of capital and the users of capital removing all the intermediaries in between. So the customers could give up the toil of going to a bank or a financial institution for availing banking services.
3. “Customer intelligence” will be the most important determining factor. Technological advances have given businesses access to exponential data about what customers want and how they want it. Analytics is used as a force to unlock such data and give the makers access to huge set of relevant information about their users and thus make a product or service that the customers want.The more empowered the customers feel the more is the risk of loosing the customer. The customer has the knowledge of what he/she wants from a particular product or service and determines the value derived after using it. So the companies need a very dynamic model to such an approach.
4.  The emerging Middle class. The Middle class population in the developing countries is the new and the most frequent user of technology in services. It also comprise of a strong customer base for the current trend of financial services getting digitalized. The customers here are learning to adapt to the changing urban environment and want to make use of the most of it. They are receptive to change and understand the value of money. So the services provided by the startups seem to be more attractive as they are cost efficient.
5. Regulators will turn to technology too. The use of technology and its implications are not limited to financial institutions. Regulators are rapidly adopting a wide range of data gathering and analytical tools, too. They also hope to monitor the industry more effectively and to predict potential problems instead of regulating after the fact. This can act as arising opportunity for the startups to emulate a business design suiting to the situation.
6. Cyber-security will be one of the top risks facing financial institutions. As the world move towards more technology and more of internet use, the threat of cyber security is very evident. The use of financial services will be smoother if it is backed by secure systems and data privacy setups. This will make the particular service more approachable to the customers. Startups might find a solution to this problem and thus turn it as an opportunity for themselves.