[vc_row][vc_column][vc_column_text]There is a lot of talk and rumor around that the traditional banks will be replaced by disruptive forces such as Fintechs who will take away their clients and that the Banking sector will die a natural death.
However, this is not necessarily so.
It is true that a certain sector of the Personal banking market will be at risk, however the Banking world has survived over the centuries through many crisis including the recent Global Financial meltdown in 2008 which was the worst economic disaster since the Great Depression of the 1930’s.
Technology in today’s context is growing in leaps and bounds, which is no doubt a threat-with Fintechs (both Technology and Telecom companies) using smartphones for mobile banking, investment services and cryptocurrencies making financial services more accessible to the public-however it is also an opportunity for the banking world.
In the latter half of the 20th Century Banks invested heavily in technology and gave their customers much faster service for clearing transactions. Today real-time clearance is happening. However most of these systems still in use today are running on legacy platforms and bringing new products to the market takes time.
Investment in cutting edge technology is a must to retain their customer base as new and innovative products are brought to the market.
Customers trust their banks and hence banks tend to have lots of data regarding their history. However financial data is not enough. From buying patterns to holiday travel is also needed to get to know them better. Analysing Bigdata and forecasting customer needs would allow Banks to be proactive in offering advice to customers as they once did when the Branch Manager used to know the ins and outs of each of his customers in the small town.
Corporate customers need the ability to manage their own portfolios be Forex, Import/ Export documentation, Loans and Investments etc with up-to-date historical and future views I.e. a bird’s eye view rather than a rear view mirror perspective.
Personal customers will require an improved experience which is simple but efficient and Advisor assistance not just for financial transactions but for all matters.
Building relationships with Merchants and service providers will enable the bank to proactively take non-financial information in real-time to their customers- to the 24×7 ‘on’ smart phones. The bank must become the center, the one stop for customer requirements.
The Eco-banking digital experience should take into account the trends of the future such as VR and AR[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Image courtesy[/vc_column_text][/vc_column][/vc_row]