bankingciooutlook

The Impact of Increased Digitization on Retail Bankers

Banking CIO Outlook | Wednesday, August 19, 2020

Digital technology is quickly emerging as a trend in all industries. The new decade is set to bring forth a data-driven race, where new disruptive technologies will transform business operations to enhance efficiency. Re-opening of the economy is a very challenging process with a significant amount of risk

FREMONT, CA: The outbreak of the COVID-19 pandemic has had a significant impact on traditional business methods. The complicated circumstances and the new regulations on social distancing and minimal contact services have made it extremely difficult to run a business in conventional ways. This has led to an increased number of people, both consumers and retailers, shift towards online and retail channels for their requirements. A return to the old way of life seems highly unlikely, and people are slowly accepting that this may be the new normal. As the number of users increases, these platforms must be up to date and offer the most seamless experience to the consumers.

Digital technology is quickly emerging as a trend in all industries. The new decade is set to bring forth a data-driven race, where new disruptive technologies will transform business operations to enhance efficiency. Re-opening of the economy is a very challenging process with a significant amount of risk. While shops of almost all kinds have slowly re-opened their stores, many companies are still skeptical about doing so. Opening an office premise can be extremely dangerous as it increases the chances of the spread of the virus. Remote work continues to remain the safest option to keep a business running. Moreover, the tentativeness of customers to visit physical stores has also increased the push towards online mediums.

Internet connectivity is essential during these times, and technologies like artificial intelligence and data analytics have become highly in demand for managing corporate and personal finances remotely. The financial services industry has been forced to revamp its methods more than any other. Financial industries need to leverage data to inform decisions regarding the reinvention of services, infrastructure, and management. The most significant challenge of all is the fast shift of all services to a mobile-based platform.

Customers have become highly dependent on smartphones and tablets. Banks and credit unions need to adapt to the needs of those who wish to avail the services digitally. Digital wallets are also becoming popular in this period. However, customers wish for more security when it comes to banking online. This transition to a more mobile banking structure is made seamless and secure using data in a compliant and efficient fashion. Data minimalization will help retail banks only to use the data necessary for each customer and base this information on user behaviors, allowing the institution to offer the right services for each consumer.

Weekly Brief

Read Also