According to a report from Accenture, banks as we know them are on the way out. Highlighting the changing role of banks as a result of digital disruption, the study also asks if banks will be digitally disrupted or if they can use this opportunity to reimagine their role.
In the first scenario, the banks that are digitally disrupted will be bewildered by regulation and hindered by unrealistic cost reduction expectations. These banks will lose out to new players who offer more diverse financial products and services that are more in tune with the digital age.
In the second scenario, banks that want to reimagine themselves have embraced new business models. Digital banks always aim to make their customer’s life easier, they identify new sources of income and are constantly brainstorming new ideas to meet customer needs.
An international digital banking push
A new survey of US banking CEOs found that these business execs continue to up their investment in digital transformation projects. According to the report, 80% of the CEOs of these big banks are pushing digital transformation because they feel that they aren’t effectively leveraging digital channels to connect with customers.
Some of their core focus areas include:
#1 Robotic process automation: Using logic-driven robots, banks can apply pre-programmed rules in the analysis of structured and unstructured financial data. Using machine learning these robots can make recommendations based on previous decisions and data patterns. The appeal for banks is to cut costs, offer faster services and address regulatory issues. The application of robots also allows them to be available around the clock.
#2 Cognitive technologies: Machine learning and artificial intelligence leverages data collected from customer emails and social media to provide a more personalised service. This makes customer engagement more strategic and builds brand loyalty.
#3 Banking data and analytics: Each click, swipe, like, purchase, comment or search is used to develop a virtual customer identity. JPMorgan Chase & Co analysed 12.4 billion debit and credit card transactions and identified a downward trend in everyday consumer spending. The bank used this information to redefine its future strategies and offerings.
Whether you’re a bank in running in Cape Town or Cairo, you need to keep up with all the changes in your industry. Today, digital banking isn’t a nice to have; it’s a non-negotiable. For all the latest telecoms and digital banking news, subscribe to our monthly newsletter below.