Displaying search results for ""

Home > Retail banking

This is How Retail Banking is Changing as a Result of Digital

This is How Retail Banking is Changing as a Result of Digital

Three significant trends are reshaping the competitive landscape, making the universal banking model more vulnerable: Retail branches’ scale and innovation potential, Digital disruptors shifting revenue away from traditional banks, and consumers expecting better digital services and experiences. Banks need to prepare for the digital struggle for client attention. Banks need new, redesigned, fit-for-purpose value propositions and business models to win this battle.

Partnering with banking domain experts like Maveric Systems for industry-acclaimed retail banking solutions is helping leading banks achieve their profitability targets and creating new growth portfolios.

Tomorrow’s Digital Retail Banking Experience

In the current digital world, banks must rearticulate their value offer to simplify and improve the client experience and create value through data. Each bank should prioritize a retail business—or multiple businesses, depending on financial resources and competitive strengths—and design a digital platform that covers the whole search-shop-manage value chain. Three possible scenarios come up.

  1. The everyday banking platform would ease shopping by embedding transactions seamlessly (and often invisibly) into consumer journeys and providing rapid, simple access to varied retailers and service providers.
  2. The home and life events (or complex lending) platform would boost client value through ecosystem alliances supporting end-to-end journeys for important life endeavors.
  3. The wealth and protection platform would compete by using client data to provide hyper-personalized advisory support, enabling investors to make informed decisions about growing and protecting capital over decades.

Digital Reinvention in Retail Banking

Three Crucial Present-Day Challenges for Retail Banking

  1. Integrating/connecting distribution networks to enhance efficiencies, minimize costs, and serve consumers and prospects consistently. The omnichannel imperative, evident in retail and other industries, is typical of channel-agnostic and increasingly digital/mobile consumers.
  2. Retail banking consumers are fickle. Loyalty and churn reduction. Several other problems and consumer behavior shifts are to blame.
  3. Digital Disruptors. Finally, Fintechs, BigTechs, and other disruptors with digital consumer-friendly models are entering the market. Competitive landscapes vary by area and context (e.g. Islamic banks in the GCC region and several other countries).

Digital Trends for Retail Banking

Two Key Components for creating a Digital Retail Banking Momentum.

  1. A Proven full-spectrum digital banking platform. Digital banking relies on the platform’s agility, versatility, and expandability. AI-NLP onboarding is now standard. Nevertheless, genuinely digital retail banking requires more. For example, being able to apply for products from multiple digital channels and across channels (where the context is passed from one form fill to another – say from mobile to desktop), having a human-digital experience, and selecting and bundling products make the experience more meaningful and frictionless. With much of the globe adopting open banking, a digital retail banking experience must interface with many systems and provide helpful information with built-in personal money management tools.
  1. Leveraging Digital Capabilities. Today, more than being digital is needed. Digital success is when a platform lets a bank use cutting-edge technology for digital banking. The bank’s ability to bundle relevant products and communicate live via video conversations during customer onboarding helps the prospect feel valued and boosts profitability. Digital platforms can enable banks to construct financial products and craft user experiences by creating personalized themes, banners, and process flows. Product business managers can preview before launching, gain insights on usability once live, and analyze feedback using digital capabilities.

Conclusion

Retail banking has frequently been the cornerstone for lifetime client connections, and significant retail banking operations have always had market-dependent profitability advantages. In today’s fast-changing market, where under performance is costly, banks must recognize where they make a profit and where they don’t and safeguard and grow their most important revenue sources.

About Maveric Systems

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric Systems accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

View

Top Factors that Influence Retail Banking Performance

Top Factors that Influence Retail Banking Performance

When it comes to Retail banking in 2023, the areas of historic strength for legacy banks (payments, lending, small business), competition remains intense. Digital players continue to make advances despite a considerable reduction in available venture funding. The writing is clear on the wall: digital transformation initiatives must be continued but at a faster pace. Financial institutions must continue transitioning from a philosophy of iteration to one that embraces the disruption of conventional banking structures.

The number of new collaborations and alliances should expand, with a greater emphasis on the speed and scope of innovation – using data, advanced analytics, and contextual delivery of services. The focus of banks and FIs should also be on fostering financial wellness-related client interaction.

Partnering with domain experts in a retail banking technology solution, like Maveric Systems, offers banks and FIs mature advantages to their digital transformation strategy.

New Approaches for Customer Engagement for future Retail Banking Operations.  

To thrive in the current digital environment, banks must rearticulate their value offer, keeping in mind the power of simultaneously streamlining and enhancing the client experience and creating value through data. To do this with consistent accuracy, a three-pronged approach is required.

  1. Using risk modeling, banks will be able to identify and anticipate potential problems earlier. Therefore, financial specialists might recommend solutions and workarounds to circumvent these hazards.
  2. Large swaths of data will aid internal regulators of financial institutions in monitoring transactions and detecting fraudulent behavior, preventing fraud.
  3. Client satisfaction – banks will be able to enhance the entire user experience across all platforms by utilizing tailored customer data.

Top Banking Industry Trends

Three Crucial Factors that influence Retail Banking Performance in 2023

  1. Utilizing data for enhanced customization and consumer engagement. Importantly, banks have significant advantages over Big Tech in terms of client engagement and data, but they have yet to capture their entire worth. To compete for data on an equal footing with technology companies, banks will require a comprehensive data infrastructure to support data collection, storage, and advanced analytics, as well as a digital marketing engine that translates analytical insights into personalized messages that anticipate the needs and intentions of individual customers.
  1. A cutting-edge technology stack designed to decrease expenses and accelerate innovation. Each primary retail banking business model requires an IT infrastructure that can accommodate considerable fluctuations in demand for streaming and processing capacity and rapidly supply new solutions. The most challenging aspect of designing the new architecture is determining which components should be developed in-house to enhance competitive differentiation and which infrastructure elements can and should be outsourced to reduce costs and the risk of service interruptions caused by updates and upgrades.
  1. A flexible operational model to adapt to rapidly changing markets. The most successful banks will develop speed as a core competitive advantage, and they will do so through two primary channels: an agile operating model and the development of the appropriate people and skill mix.

Conclusion

While much has been made of the threat posed by Fintechs and Big Tech, incumbent banks will continue to dominate the retail banking market. Reshaping profit pools in specific businesses of the universal banking model—daily banking (deposit accounts, payments, and credit cards), navigating life events (with complex lending products), or building and protecting wealth—where the bank can define and deliver a value proposition that can win in our new digital age is the most direct route to success. The new victors will function like technology businesses, with advanced data capabilities, a cutting-edge technology stack, and flexible operating procedures.

About Maveric Systems

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

View

Things You Must Know About Retail Banking Digital Transformation

Things You Must Know About Retail Banking Digital Transformation

The implementation of digital technologies to maximize the value of digital technologies is referred as digital transformation. The four main aspects of digital transformation are Customer satisfaction (CX), Data & Analytics, Cloud Computing, and Mobility. When it comes to digital transformation, the entire organization must adopt a new mindset to accomplish the planned benefits. Employing teams proficient with technology is not enough; there is a need for an outside-in thinking that comes from domain specialists like Maveric Systems.

Delivering a better customer experience needs a deeper understanding of customer expectations and challenges. This insight layer comes from advanced analytics that banks and FIs are increasingly investing in. Especially with the proliferation of 5G technology and smart devices, legacy banks are embracing omni channel banking practices.

What does the transition from conventional to digital platforms look like? The blog covers the pertinent aspects for digital transformation when it comes to retail banking.

Banks must implement improvements to improve customer experience.

Technology improvements are affecting consumer expectations and behaviour. More than half (53%) of financial institution customers have switched to different primary financial providers, and a further 9% said they are thinking about doing so. The findings come from an Everfi Report. The conclusion? If banks want to keep their current clients, they must give them what they want.

Customers anticipate FIs to be accessible 24/7. As per a recent Deloitte survey, customers were using digital banking channels including internet and mobile apps more frequently even before the pandemic. As more customers started utilizing digital channels during the epidemic, this trend grew more pronounced. Needless to say, FIs must invest more in digital solutions as the use of digital channels rises.

Digital Transformation in Banking

Four Key Technologies Used for Digital Transformation in Retail Banking

  1. Digitization

Digitization is the first step in digital transformation. A business that primarily uses branches to serve consumers must first improve its sub optimal mobile and web banking offerings. Companies in the financial services industry should adopt cutting-edge technology rather than outdated technology as they digitize. Although iterative progress has customers thrilled, it is irrational to not use the most advanced, mature technology in the digital transition. 

  1. Automation

A McKinsey study says, 20% of corporate activities can be automated with current technology. Robotic Process Automation can assist enterprises because it eliminates human error, procedures should be made more efficient. It also reduces operating costs by reducing the staff and concentrating on more crucial, decision-intensive tasks. Then there process mining technologies that are used to find opportunities for process improvement.  

  1. Machine learning and advanced analytics

Data analysis can give insights about consumer behaviour, enabling banks to enhance the customer service they offer. Personalization is one frequent analytics application in the banking industry. Any banking product must first be promoted to the appropriate customers. By doing so, FIs can reach out to the appropriate consumer at the right time with the right message and offer through the right channel by utilizing advanced analytics. 

  1. Blockchain

Blockchain is increasingly being used across the retail banking industry. From investment management, international trade, trade finance, and capital markets, this new trend is catching on speed. One reason is that it decreases the need for intermediate banks by reducing costs, increasing transaction speed, providing transparency, and reducing fraud.

 Conclusion

The banking sector is changing quickly in the modern era. In addition to a difficult macroeconomic environment, banks must deal with constantly changing client behaviours and raised expectations in a world that is becoming more and more digital.

Through cutting down on friction in industry value chains, fostering innovative ecosystems, and adopting innovative business strategies, new kinds of competitors are catering to these demands. At the same time, the landscape of financial services continues to be impacted by the continuing explosion of data, increased compliance requirements, expanding security threats, and shifting worker demographics. Financial institutions must be adaptable enough to foresee change and thrive in it.

About Maveric

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

View

Digital Transformation in Retail Banking: Defining Creativity, Management, and Partnerships

Digital Transformation in Retail Banking: Defining Creativity, Management, and Partnerships

What prevents banks from embracing the digital trend for retail banking? Indeed, cybersecurity and data privacy threats are among the top worries, followed by the prohibitive costs and complexity that technology poses. However, as with any shift, the digital revolution in banking necessitates a solid, all-encompassing strategy.

If Digital transformation is the primary objective to redefine creativity, management, and partnerships, then there are three crucial approach pathways:

  1. Redesigning the client experience
  2. Building a solid partner ecosystem
  3. Investments in emerging technologies

Let’s start with the requirement of redefining client management and partnerships. Incumbent banks will do well in this regard from what the neo-banks mainly do: Freed from legacy systems, neo-banks rely on lean business models to offer innovative features for friction-less services that power access to specialized market bases.

Creativity in Operating Models and Business Strategy for Retail Banks

As strategic partnerships with leading banking technology providers such as Maveric systems bears out,  digital transformation is about both the operational and cultural movements toward integrating digital technologies across all banking functions of the bank.

Creativity becomes indispensable when FIs are mandated to maximize customer value and bring an edge to compete in a saturated market. While technology is the foundation of digital transformation, banks must implement their digital strategies creatively to do more with less. After all, many digital transformations fall short because technology is the only factor considered. Crucial on the implementation checklist are addressing the cultural barriers and the change management needed.

Digital Transformation in Retail Banking[6696]

Driving creativity, partnerships, and management in Retail Banks – What are the success markers?

The advice for retail banks can be summed in a single phrase – operate like a technology company. Breaking it down for actionable insights,

  1. Employ data to enhance personalization and consumer engagement.
  2. Choose technology stacks that lower expenses and accelerate innovation ability.
  3. Adopting a flexible operational approach that adapts to rapidly evolving markets

Conclusion

Although the banking industry has historically resisted change, the pandemic’s potential effects and the severe competition from Fin-techs drove banks to speed up their digital transformation. Banks have many opportunities to profit from digital adoption, including increased consumer convenience, process optimization, and efficiency gains. To access these values, several of the most prominent banking institutions in the world have already embraced enterprise software development.

 About Maveric Systems

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric Systems accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric Systems teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

View

Retail banking digital transformation – Choosing a digital platform.

Retail banking digital transformation – Choosing a digital platform.

Today’s uncertain economic climate has little tolerance or margin for underperformance. Banking faces severe tests. From knowing where to find and make profits to protecting and expanding strategic revenue streams, success in today’s evolving markets mandates that FIs must define and deliver value propositions that can win in the digital age.

Given the spirited forays of BigTechs and Fintechs, Retail banking institutions should discard older playbooks. The incumbents will do well to operate more like the Tech companies – advance their data capabilities, employ next-gen tech stack and embrace agile operating models.

The retail banking digital transformation will neither be a simple nor a quick fix. For one, a profound examination of consumer expectations is a first step, followed by shifting incumbent banks’ scale advantages in their branches to commit to innovations.

How should Retail Banks prepare for tomorrow’s customers?

Retail banks must reconfigure their value propositions to simplify and enrich the customer experience and create value. To do that, they need to choose digital platforms basis their capital investment appetite and the competitive landscape in which they operate. Three digital platforms support the entire value chain.

  1. Daily banking platforms offer frictionless access to diverse retailers and service providers.
  2. Complex lending platforms that support end-to-end ecosystem partnerships for life events and non-daily events.
  3. Wealth and asset management services platforms offer hyper-personalized advisory support that helps investors increase and protect wealth across lifetimes.

Partner or a Vendor?

Digital banking platforms (DBPs) implement next-generation tech stacks to enhance self-service customer journeys and give customers increased decision-making powers. However, for DBPs ranging from development platforms/ toolkits that would enable banks to develop their services to highly packaged off-the-shelf services, the landscape ranges from global and local players and industry-specific backgrounds such as payment processing and core banking.

But more than a vendor, a digital transformation partner like Maveric is crucial to keep pace with the rapid rate of change and to employ new products and services quickly and effectively.

Digital banking platforms

Since the increase in mobile banking, DBPs have evolved to manage the whole customer lifecycle. Leading banks favor the interaction and customer engagement elements over transaction-centric services as part of their overall broader omnichannel strategy. Here are a few functionality-driven DBPs.

Online banking: Internet-based access portal for basic banking functionality (e.g., account information and payment transfers)

Mobile banking: Including SMS, WAP, smartphones, and tablets with the same functionality as online banking, as well as biometric and facial-recognition technology.

  1. Origination/onboarding: Supporting direct digital applications and automated client onboarding
  2. Customer engagement: Independently access, manage and customize end users’ account information.
  3. Employee engagement: Banking personnel communicates with the client on the digital banking platform via devices to improve the customer experience.
  4. Digital marketing and customer communication: In-application marketing alerts, banner adverts, and targeted marketing message support.
  5. Analytics: Track individual customer journeys across multiple devices and channels.
  6. Multichannel management and integration: Omnichannel experience within the digital channels, contact center, ATM, kiosk, and the branch and integrate new digital channels as required

Choosing a Digital Platform

  1. Flexible system for dynamic product and service innovations.
  2. A system that creates and launches new banking services with superior speeds.
  3. Offers omnichannel banking interfaced seamlessly with multiple platforms.
  4. Holistic client-tailored data repositories and dashboards.
  5. Compliant across industry regulations and minimized operational risks.
  6. Employs control and corporate governance tools to identify and rectify transactional issues.

Conclusion

To compete with technology companies, banks must use comprehensive data infrastructure to support data collection, storage, advanced analytics, and a digital marketing engine to translate analytical insights. Moreover, retail banking business models require an IT infrastructure that handles demand variations and processing capacities to deliver new solutions through faster turnaround times.

About Maveric Systems

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

View

Retail Banking

Corporate Banking

Wealth Management

Retail Banking

Progressive retail banks (leader and challenger alike) around the world…

Corporate Banking

With a singular focus on banking technology for over 21 years…

Wealth Management

By working across several asset classes such as securities, equities/bonds…

Customer Experience

Connected Core

Regulatory Compliance

Digital Operations

Customer Experience

We reimagine the way customers experience digital banking, by co-creating solutions…

Connected Core

With 16+ years of Temenos product stack mastery, and 550+ Temenos specialists…

Regulatory Compliance

We help banks manage hyper growths with zero compliance lapses, by co-creating solutions…

Digital Operations

Pulling ahead and establishing your competitive advantage in digital banking

DataTech

Digital Transformation

Core Transformation

Quality Engineering (QE)

DataTech

Accelerate your next in data transformation through precise decisions

Digital Transformation

Secure your Bank’s digital transformation with maveric digital.

Core Transformation

A Certified TEMENOS Services Partner

Quality Engineering (QE)

Accelerate business through continuous quality focus across the transformation journey

About Us

Overview

Leadership

Partners

Awards and Recognitions

Statutory Disclosures

Insights

Blog

Videos

Webinar

Success Stories

Whitepaper

Brochures

Flyer

Infographics

Overview

Accelerating Next in Banking Technology Transformation

Partners

Our Strategic Partners

Leadership

Meet our Leaders

Awards and Recognitions

Maveric Under the Spotlight

Statutory Disclosures

Statutory Disclosures

Blog

Discover insightful content from our leaders

Success Stories

Successful Banking Technology CaseStudies

Videos

Insights with video Walkthrough

Whitepaper

Insightful Whitepapers

Brochures

Check out the latest in the shelves

Flyer

Check out the latest flyer post

Infographics

Graphical Insights

Webinar

Watch out for upcoming Webinars and Recordings