Traditional banking providers are infusing digital mindset into legacy banking culture, believing that going digital will fundamentally change them.
FREMONT, CA: Digital disruption is shaking up every area of banking. From new technology and new competition to increasing customer expectations, banks are becoming increasingly vulnerable to changing dynamics. Banks are now focusing on digital-only services and exceptional customer interactions by extending their in-house capabilities or partnering with financial technology companies to develop new digital offerings. Below is a sketch of banking's digital transformation journey.
Banks started computerization many decades ago, which has served their purpose quite well in the traditional model of bank branches. In time banks adapted different applications and technology stacks to serve the consistent technology strategy. Banks running digital can witness reduced costs and streamlined processes. Going digital has also affected the banking workforce with automation resulting in staff reductions.
The banking industry is among the most data-driven of industries and the challenge of being knowing how to translate these vast data into meaningful insights. Data analytics is providing significant opportunities for banks to thrive in their competition. Moving data onto a cloud platform offers a complete view of customers. The deep insight shows banks the areas where they need improvement and creates more value. It is also allowing the use of disruptive technologies like artificial intelligence, blockchain, and IoT to map the customer journey and gain a competitive edge.
New technologies also allow banks to strengthen customer engagement with personalized, innovative service offerings. The industry is also leveraging the internet of things with mobile applications, ATMs, and sensors, providing a new opportunity for real-time asset financing. Banks are also using blockchain technology to transform business process as it offers secure, convenient alternatives to legacy banking processes.
Banks are racing to take full benefit of market opportunities available through digital transformation. There is no doubt that new technologies are changing the banking industry. Banks that embrace innovation and adopt new technologies early have infinite opportunities to change and improve how they provide financial services.