Factors Contributing to the Growing Digital Mission in Banking

Banking CIO Outlook | Wednesday, June 05, 2019

FREMONT, CA: The burgeoning of mobile devices and information technology has changed the banking industry, which promises customer service whenever and wherever. New players in the industry are creating an impact on assets and liabilities. The connected, digitally savvy, and informed customer is remarkably aware of digital possibilities, and this is an age of the empowered customer. The slew of new technologies such as natural language processing (NLP), blockchain, augmented and virtual reality, Internet of Things (IoT), and advanced analytics, are revolutionizing the way banking is consumed.

There is a recent trend of an increase in the number of channels and devices on which banking is implemented. The conversational experience fueled by AI and natural language based interactions are emerging as the most effective solutions for customer engagement. Customers expect a frictionless multi-channel experience with any provider they interact with and expect banking to be integrated, with their everyday experiences, which demands that banks reimaging customer journeys for meaningful engagement and value.

The technology enabled consumer is armed with tools not only to communicate and get satisfied with the service needed but also to evaluate the quality of their relationship with their financial institution. The concept of mutual lifetime value is a core value among customers. The explosion of digitalization and connected devices made it visible for customers to expect seamless services from financial institutions. This translates into global expectations for fast and hassle-free transactions, whether customers are making payments or looking for statements.

The current market is full of competitors hoping to get into the digital wave in the form of new products or brand-new services that are building the modern financial industry. To succeed in the future digital banks need a robust digital foundation that supports customer-centric processes.

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