The increasing influence of BigtTechs, such as Google, Facebook, Amazon, and Apple, and other high-tech players, has raised the standard for customer service and seamless user experience.
FREMONT, CA: The banking industry is undergoing a transformational shift. Traditional players are facing challenges to stay relevant in terms of product and services offerings, seamless, future-ready innovations, and individualized customer experience at every touchpoint. Competition from challenger banks and BigTechs is increasing complexity and encouraging banks to explore beyond traditional products to meet ever-changing customer requirements.
The emerging ecosystem called Open X allows for more effective and open collaboration with new industry players such as FinTechs simplified by API application programming interface standardization and shared customer data insights. Hence, banks are exploring new business models, partnerships, opportunities to grow, and ways to personalize offerings.
The increasing influence of BigTechs, such as Google, Facebook, Amazon, and Apple, and other high-tech players, has raised the standard for customer service and seamless user experience. Gradually, banks are opting for design thinking methodology in order to understand the get deep insights, customer journey, and develop a user experience across the customer lifecycle.
Let us look at some trends in retail banking:
Increased Collaboration with Fintechs
Point-of-sale financing attracts consumers who desire more flexibility than traditional credit purchases offer.
Blockchain Solutions Improving Identity Management Programs and KYC
Banks are turning to blockchain technology in order to streamline identity management programs and KYC to manage regulatory requirements more efficiently.
Embracing Design Thinking
Banks are doing workshops to gain better insight into customer requirements and expectations. Later, they build digital prototypes around the learnings.
More Collaboration with RegTechs
2020 witnessed an increase in the number of regulations as well as the associated cost of compliance, which is encouraging for more RegTech adoption among banks.
Technology Innovation Supporting Banks’ Risk-Compliance Initiatives
Technological innovations enable banks to meet regulatory requirements and subsequently utilize this to gain a competitive advantage as well as deliver customer-centric solutions.
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