Since the 2007 Credit Crunch, the global banking industry has been under pressure to perform in a “less than ideal” environment; low interest rates, a sluggish global economy and rigorous regulations. However, with every challenge comes the possibility of opportunity.
Technology continues to shape and influence customer engagement and as such, banks must adopt a customer-centric strategy if they want to compete. Leveraging their IT infrastructure is essential to ensure that they can support a quasi-seamless customer experience.
Adapting To A Digital World: New Consumers Demand An Integrated Online Service.
As digitisation of the banking world becomes a reality, key banks will focus on customer experience and how to address needs relating to instant and user-friendly services in order to remain competitive.
This trend is supported in the Banking and Securities Outlook for 2017 by Deloitte wherein they state that refining the customer experience will be the main driver for technology that supports core transformation, digitisation and automation.
If that is the case, does this mean that banks will finally retire their legacy systems in favour of consolidated, integrated, cloud-based platforms?
Improving End-to-End User Experience is the key.
With the recent rise in new technologies such as AI, Biometrics and Blockchain ledgers we are seeing these being seamlessly integrated into new payment and financial services institutions built by Fintech and neo-banks. This integration of ground breaking technologies provided tighter security in an area where previously there were customer concerns.
In the 2017 report, Deloitte have also predicted that the next wave of technologies will most likely be focused on Risk Management. With a market increase within eCommerce and identity fraud on the rise putting additional pressure on financial institutions, technologies surrounding KYC (Know Your Customer), AML (Anti-Money Laundering), ID verification and other authentication processes will be developed and implemented.
Without a doubt we can look forward to this continuous digital shift in favour of customer experience with more initiatives such as self serve kiosks and automated services. Physical branches will also continue to transform with the help of augmented reality pilots – materialising through new payment market segment opportunities such as in-car payment systems.
But what about on a larger scale? With SimCorp reporting more and more clients leaning towards their internal system consolidation and integration is this the general consensus within Finance? Will both customers and those working in the finance industry soon all be accustomed to new integrated front to back office technology? Are we truly moving towards a seamless integrated banking experience?
New digital channels are a part of integrated strategy which has evolved from the first to second generation digital banking: promoting digital from support to the finance industries key sales and communication channel. With reputable institutions such as Deloitte reporting on the increasing digital consolidation trend and solutions providers like SimCorp providing evermore end to end platforms for full system consolidation and integration, it is clear that this is the next trend in both FinTech and customer facing advancements.