The technological revolution in the financial industry continues to develop, forcing organizations to change and keep up to stay in business. What are the things that need to be pursued in order to turn this evolution into an asset?
It’s no joke, studies show that generations under the age of 30 today are willing to pay substantial sums to receive personalized services in the comfort of their own homes, and will clearly choose the company that offers them this luxury.
We cannot ignore the frantic evolution of companies like Revolut on the Romanian market, and we have a duty to learn from what these Fintech companies do well. However, we should not panic, stable, experienced financial institutions have the necessary basis to offer the modern services that customers are looking for. From experience we tell you that in banking, the hard part of business is not digitalization.
Let’s see what are the 5 tech trends that will define the year 2020 for financial institutions.
1. Transforming digital transformation
The focus on the customer experience has changed the discussion about digital transformation. Digital transformation used to mean the evolution of business processes from manual and paper-based to electronic. Today, digital transformation has become the foundation of the modern customer experience.
Customers want to do banking on the most comfortable channels, and yet, the idea of office does not disappear. A McKinsey study & amp; Co shows that, in fact, customers who use digital banking once a week are with 60% more likely to be active visitors to physical offices . F2F interaction will not die, and the pertinent and humane advice offered by the bank’s employees will become very valuable in an already highly robotic world.
Where should we look? Obviously when offering services on digital channels, and next to that, we must offer the bank’s employees a complete view of the client, so as to offer the best answers, to answer the most difficult challenges and to surprise the client at every step.
2. What’s with smart automation?
AI has become the biggest buzzword in our industry. When talking about AI, in general the functionalities discussed are the most pompous: voice recognition, visual recognition, etc. What interests us most is the area of AI (yes, read correctly, intelligent automation). IA , according to Deloitte, is combination between automation and artificial intelligence .
Basically, AI takes on the role of ‘doing’, simply by automating tasks. At the high level, AI assumes the role of ‘thinking’, using data to deduce and analyze.
Intelligent Automation already changes the way we interact with customers:
- Chatbots are used for fast, standardized customer interactions.
- Analystbots detects fraud, manages risk, and helps organizations analyze portfolios and transactions much faster and more accurately than they can people.
- Compliancebots follow laws and regulations in real time, making sure your institution complies with them.
AI also affects the bottom line. According to Juniper Research, chatbots will save $ 11 billion annually </ a> for banking organizations until 2023.
3. We keep up with RegTech
Financial institutions are facing an increasingly complex legislative landscape. Hundreds of global organizations publish thousands of policies and expect organizations to maintain compliance with them.
According to Global Regulatory Outlook 2018, financial institutions use 15% of employees and 10% of annual revenues to keep up with the rules.
RegTech companies can solve this problem:
- Automates compliance processes
- Become a source of governance
- Provides transparency and risk management in reports
- Reduce the need for manual intervention
- Provides the ability for better data analysis to identify and address risks
4. The power of the platform ecosystem
A platform ecosystem is a type of structure in which a central IT solution mediates the relationship between several complementary solutions, including applications, core systems (banking, insurance), and potential users (including customers!).
Tom Hardin of Digital Trends defines it as an ecosystem of people, data, companies, and processes connected by the common use of digital platforms .
Integrating line-of-business solutions such as Salesforce and Redtail with a robust content services platform lets business processes run more efficiently, empowering users to get the information they need, when they need it, staying in familiar applications. .
More and more organizations are moving to the platform ecosystem structure to provide the best services in the most efficient way possible.
5. Customer Experience is the new competitive differentiator
CX is the differentiator key in the digital age , according to The Wall Street Journal and „ the only differentiator ” according to Inc.com. The idea of making a ‘seamless’ banking experience, which oscillates flawlessly between physical and digital, which can provide an instant response to customers at any point needed.
The only way to do this is to link the key systems together so that they can share information and work together. Most core systems can’t handle content – documents, forms, notes and emails – efficiently, and that’s not their job. A robust content services platform can complement those systems, providing employees with customers all the information they need, then and where they need it.
In short, to build a real relationship with customers, give them an unexpected experience. Understand them, anticipate their needs, exceed their expectations.