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.
- 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.
- 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.
- 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.
Three Crucial Present-Day Challenges for Retail Banking
- 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.
- Retail banking consumers are fickle. Loyalty and churn reduction. Several other problems and consumer behavior shifts are to blame.
- 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).
Two Key Components for creating a Digital Retail Banking Momentum.
- 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.
- 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.
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.