Retail Banking: Rightly Made for the Digital Age!

Banking CIO Outlook | Wednesday, August 14, 2019

The evolution of data analytics, ML, and AI is helping financial institutions to hit the sweet spot to transform the retail banking experience further.

FREMONT, CA: Consumers are becoming more comfortable and assured in moving money through methods that bypass conventional financial institutions. Powerful tech implications are reshaping the banking business, formulating an imperative for change. Banks need to determine what posture it wants to adopt to lead the revolution, to follow agile, or to manage for the present. The research revealed that 44 percent of Gen Z anticipates supplementing conventional banking services with solutions from technology businesses. Credit unions and banks are under pressure to function more like fintechs. Financial institutions are shifting their focus from simply facilitating transactions to playing a more vital advisory role in peoples' lives as digital inclinations take center stage. There are many ways how banks and credit unions will respond to the changes ahead.

• Cashless Mode of Payments 

There have been notable shifts in banking and finance over the last decade, with occupiers now marking small-scale footprints for cashless banking standards that cater to the digital banking habits of consumers. Banks are profiting from a tech-focused consumer transaction revamp. With portable and cashless POS technology, transactions can mature to be part of the natural sales process enabling an efficient and streamlined transaction experience between shoppers and retailers. This enables secure transactions and removes the uncertainty of human error while supervising cash. Financial institutions have acknowledged the influence payment transformation will have on their position in the operational processes, customer value chain, and cost, and risk management.

• Evolution of Modern Branch Infrastructure

Right-sizing the branch network is a continuing center for banks and credit unions. Financial businesses are still initiating branches, but their size, design, and function are quite distinctive from the past. Transformation of the branch is a buzzword as it fits a place for guidance, advice, and help with more complicated financial questions. Newer branches feature cross-trained universal bankers loaded with tablets and easy access to applications. Interactive teller machines and branch self-service teller machines enable self-service capabilities in the branch. The stand-alone locations and drive-through lane allow financial institutions to extend their markets cost-effectively. A growing abundance of financial institutions is moving away from everyday management of technology to focus on its customers and members.

• Eye on Innovation

Banking innovation is accelerating and expanding at an incredible pace in various areas. Open application program interfaces should be a component of every forward-thinking financial business's strategies. Open banking and API energies are sparking innovation and accelerating new business models based on collaboration among external providers and financial institutions. This kind of flexibility facilitates the delivery of differentiating experiences for customers. Businesses are looking up to AI to help customers navigate more responsibilities on their own and in real-time. The initial wave of bots, ML, robotic process automation, and natural machine language is being consolidated into financial services. Financial organizations are commencing to use AI for automated loan decision-making.

Retail banking remains a primary touchpoint for consumers, even as how it handles and move money change. Heightening consumer expectations for speed and comfort continues to modify the branch and banking. Banks will require being on the cutting edge of technology and seeing that developing customer needs and lifestyle demands are engrained in every offering. Retail bankers need to understand what's achievable, what systems can deliver them, where the latest technology innovations are, and what should be pursued. Staying ahead of transforming consumer expectations and inclinations for speed and change are the lines of focus in the future.

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