The Future Of Banking

By Zuzar Tinwalla, CIO, Standard Charted Bank India

Banks have historically played an important part in people's lives. While consumer demand for financial services will continue, it is unclear to what extent traditional banks will provide these services in the future.

While most consumers still consider a traditional bank with branches to be their primary financial services provider, an increasing number of consumers are beginning to express both decreased dependence on their bank  and  increased  excitement  about  what  alternative companies can provide.

The  threat  to  the  relevance of  traditional  financial services providers comes from the expectations being set by non-bank digital-first organizations, the burden of legacy systems and organization structures and the impact of new fintech players.

Digital native companies are changing consumer behaviors  and  expectations  by  showing  them  what  a great customer experience looks like. Customers are expecting instant gratification, outstanding service quality, simple, intuitive  processes, 24/7  availability, self-service, transparency  of  products  and  pricing,  personalization and tailoring, and a consistent experience across channels. However  most incumbent  banks are burdened  by legacy technology and operations that make it difficult to deliver change quickly. This is exacerbated by a traditionally siloed organization structure and cultures characterized by heavy governance and avoidance of risks. On  the  other  hand, credible players are entering the market that do not have such legacy issues and are able to deliver what customers are hoping  for. While the  market share they are taking away from  banks  remains  limited  in  most  cases, such players are becoming material in payments, lending and foreign exchange.

Hence  in order  to  grow  market  share  and  deliver higher returns, banks needs to increase relevance with their customers and reclaim their central place in people's lives by learning to be digital with a human touch.

IoT, robotics, cognitive, AI, blockchain, cyber security, virtual reality and augmented reality are part of an impressive list of technology-based disruptors which are lurking behind every aspect of the  customer  experience. But at the heart of the digital revolution is a customer, and it is organizations that are developing digital to solve real life needs, wants and problems will resonate most with  customers.  To  be a leader, banks need  to  focus  intently  on  anticipating disruptive forces defining the needs of tomorrow’s customer, and then developing these ideas for operation. As the customer agenda becomes more and more central to  organizational  thinking, we  might  see the  principal organizing philosophy move from a functional focus to a customer journey focus. Banks also need to adopt a new, more  integrated  organizational  lens where Digital  is no longer  a Technology  function  or  a walled department, but  rather  a central driver of enterprise-wide  plans and strategies.

 FinTechs to  radically simplify products and deliver exceptional customer experiences, possibly by collaborating with like-minded partners to deliver practical solutions and high-quality products.

security, virtual reality and augmented reality are part of an impressive list of technology-based disruptors which are lurking behind every aspect of the  customer  experience. But at the heart of the digital revolution is a customer, and it is organizations that are developing To be effective in engineering a human touch into their digital future,  banks need to embrace new technologies, design journeys around the customer, adapt organizational structures to best meet customer needs, develop company culture  and  engage  employees in  a way that  will drive customer  experience improvements.  Finally, banks need to  innovate  likeIn  order  to  meet  our  clients’ needs  in  the  digital ecosystem of today and tomorrow,  collaboration between the  financial and  technology  sectors  will lead the  way forward.  Hence  we  have  actively reached  out  to  the FinTech community to scout for the high quality solutions and  have  already  implemented  collaborative  projects around risk warning systems, data analytics and customer on-boarding.

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