The year 2020 has been unprecedented for the humanity. The pandemic has accelerated the adaption of technology in every way possible and BFSI industry is not far behind. For instance this article suggests that since lockdown, Europe has seen a 72% increase in the use of Fintech apps.
As financial institutions worldwide, constantly face the challenges of maintaining leadership and retain competitive advantage, in a landscape marked by new age banks and Fintechs calls for
- Reengineering business models
- Adopting newer technology stacks & platforms
- Integrating with financial technology ecosystem
Achieving these at unprecedented speed is the gamechanger for effective transformation. In this article we look at what does 2021 look like for the banking industry.
Redefining experience engineering
For the banks, it has now become imperative that the customer needs are at the forefront. Banks will put the emphasis on redefining the customer journey in the new normal. The ability to uniquely engineer transformation solutions in customer context after thorough understanding the customer needs is going to be the priority for the banks.
Data for precise decisions
This Deloitte report indicates that 44% of the banks are already implementing measure to improve information systems that better enable them to respond to crisis and customer needs. As the digital channels now become “table stakes”, financial institutions will find ways to differentiate themselves in the eyes of the customer. Banks will increasingly adopt data and analytics solutions for updating scenarios, forecasting trends and changing risk models considering the pandemic. Data models will also be used to fine tune the customer persona and sharpening individualized offerings rather than using demographic segmentation for banking products.
To keep pace with disruptive competition and the ever-evolving customer expectations, banks will start use cutting edge risk & impact frameworks and simulators that allows rapid prototyping for delivering robust MVP’s. This will not only drive heightened efficiencies but will also improve scalability and availability.
API based banking will see a significant rise in the future, driven by regulations like various open banking regulations and adaptions and financial marketplace, driving the need to integrate with the larger financial technology ecosystem. There will be a lot more synergies between various players in the industry and the end consumer is to win and in a big way.
Purposeful partnerships with industry leading platforms to develop solutions/drive delivery through collaborate-not-compete approach will also be on the agenda for the global banks in the year 2021. While the banks will work on developing newer and innovative services and solutions to help them and their customer steer through the new normal, a higher degree of collaboration amongst various players in the ecosystem will play a vital role in the growth of a banking organization.
Relooking the Talent strategy
As the banks adapt more and more automation, they will also look at how the available talent is better utilised and how new talent can be trained. This report indicates, 43% of all bank working hours can be automated with current technologies. The talent needs are shifting from basic cognitive skills to socio-emotional and technological skills. Banks will need to identify roles and skills which drive value for them in the world where digital is the new normal.
The world, as we know it in 2021 will not be easy to deal with. However, being optimistic and hopeful is going to be the way we live. For everything to help the banks, with the digital transformation requirements there are experienced #DigitalMaverics ready to help.