How Consumer Banking will evolve in 2019

By Banking CIO Outlook | Thursday, January 31, 2019

Banking AnalyticsBanks for the past few years have been undergoing a digital transformation. Digital connectivity continues to grow though regulations remain unpredictable and economic conditions are uncertain. These trends may affect banks in 2019

Analytics in Banks

Banks that won’t sustain and increase its deposits will face shrinking net interest margins and a competitive disadvantage in their consumer lending businesses. In response to competitive pressure, banks will invest deposit pricing strategy. Sophisticated analytics tools, like optimization, and the ability to rapidly deploy the models developed by those tools will give banks the ability to deliver smarter solutions enabling them to compete effectively.

Banks will become customer-centric

Banks embracing digital transformation will recognize that customer-centric business processes are essential critical for success. This goes beyond just technology to include team incentives, talent, and trust. Banks will begin thinking about their growth through the lens of the customer rather than product sales. Banks will look for solutions by a balance of automation and empathetic human experiences. Employees will be empowered with the right skills and tools to help customers progress on their financial life journeys.

The Silos Problem

The goal of the majority of banks is to create compelling customer journeys that will differentiate the organization from its competitors. It is becoming increasingly clear that these transformation projects require not just new technology; they also require significant organizational changes. The business units and technology stacks for credit risk, marketing, fraud, and compliance fail to maintain the status quo when it comes to a large scale transformation. Banks will increasingly recognize this and work to restructure the negative effects of business units as they shift from product-centric to customer-centric business strategies.

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Payment Solutions

Payment solutions like mobile wallets and P2P payment networks are steadily displacing traditional payment options like cash and credit cards. These latest emerging payments solutions will attract the attention of criminals. Emerging payment solutions will become more mature as payments executives focus on educating their customers and adapting to latest their fraud control plans to compensate for this growing threat.

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