The retail financial services industry in 2020 will employ technology to enhance personalization and pervasive access to consumer products and services across a broader range of distribution channels according to financial services advisory firm TowerGroup.

The firm made these predictions at its 2003 Financial Services Business & Technology Conference in Boston. Mark Sievewright, TowerGroup president and CEO, and Bob Landry, vice president of research and corporate development, ended the conference with a joint presentation that looked at the trends that have shaped the financial services landscape, and what the future might hold.

Landry outlined three key trends he expects to see realized by 2020:truly ubiquitous Internet connectivity; pervasive computing through both wireline and wireless access points; and an emphasis on personalization driven by technology.

“While experts today refer to both pervasive computing and the ubiquity of the Internet, we’re simply not there yet” said Landry. “The Internet will ultimately become the ‘Totalnet’ with near 100% penetration, while computing power will be woven through every aspect of our lives. To be meaningful to the individual, the immense computing power that technology will provide in 2020 must be used to personalize consumer experiences. And the more personal the context, the more critical issues of both security and privacy will become.”

Looking at how technology’s evolution might impact the financial services industry in 20 years, Sievewright pointed to the reality of one-to-one customization and personalization, facilitated by technology.

“TowerGroup believes that customer touchpoints for retail financial services will continue to expand over the next two decades, particularly with the ultimate arrival of mobile as a viable delivery channel,” said Sievewright. “However, five years from now, the industry will begin to see a reduction in touchpoints like branch, ATM and call center as use of paper-based products like cash and checks finally begins a more significant global decline. In addition, we expect by 2020 to see a more fully-realized approach to multi-channel integration – one that allows true personalization on a one-to-one basis.”