Anyone remember the days when you actually had to go into the bank to deposit money, cash a cheque or apply for a credit card? I think most of us would rather forget them.
Digitalisation has not only changed how we communicate, learn and do business, it has also totally revolutionised how we bank. A 2015 McKinsey study stressed that banks have three to five years to become “digitally proficient”.
The same report explained: “Revenues and profits will migrate at scale toward banks that successfully use digital technologies to automate processes, create new products, improve regulatory compliance, transform the experiences of their customers, and disrupt key components of the value chain. Our analysis suggests that digital laggards could see up to 35% of net profit eroded, while winners may realise a profit upside of 40% or more.”
We believe that telecoms/communications technologies play a key role in helping banks embrace digitalisation. So how should banks use these tools to keep up?
Here are our suggestions:
Ditch legacy systems: Banks are no longer just financial entities. In order to meet the needs of their increasingly tech savvy customer base, banks need to offer the same level of digital services as their more tech-focused counterparts. Legacy systems are one of the greatest barriers preventing banks from embracing digitalisation.
Similarly, when it comes to managing your IT and telecoms environment – outdated spreadsheets are the “legacy systems” that no longer make the grade. Especially when you have to track the telecoms spend and usage of hundreds of people, across various branches.
Focus on cyber and IT resilience: In the last year, many banks have experienced IT failures and system outages; eroding confidence in banking technology systems. An increased risk of cyber attacks is one of the greatest downsides of embracing digitalisation.
Because banks are dealing with sensitive, financial information, they need to have the right security protocols in place. From a telecoms management perspective, having the right cloud-based Telecoms Expense Management (TEM) software, that conforms to enterprise security standards, means that banks no longer have to worry about compromising the security of sensitive data.
Cost containment: This remains an important area of focus for banks. As they invest in more advanced processes to improve IT capabilities and respond to changing customer demands, banks should always implement these strategies with the idea of maintaining or lowering expenses.
Gartner highlighted that communication services in 2017 will account for roughly 41% of overall IT spend globally. So, while this area is key to customer engagement, implementing an effective Telecoms Lifecycle Management (TLM) cloud-based solution should be part of any bank’s plan to manage optimisation and the cost of their IT and telecoms environment.
As financial and regulatory technologies evolve, non-traditional players are competing with more well-established financial institutions. This presents banks with significant opportunities. If you’re keen to learn more about why you should include TLM in your digitalisation strategy, fill in the form below to get in touch or sign up for our monthly newsletter.