Banking sector

Humans think about the future quite often. At a certain point, we can point that imagination is what takes people to extreme places. Technology was one such thing and landing a space vehicle at mars was another. If we envision where the world will go in a decade or so, there are a lot of options. Along with human and technological developments, the banking sector is also experiencing digital transformation and its impacts. Many anticipate that 2030 is the year when the banking sector will turn fully digital.

The global banking sector has been witnessing a linear curve for the past few years, thanks to technology and its intervention. While rich countries like the US and UK have promoted banking for a very long time, medium and small-income countries are just at the beginning of the transition. Besides the urban areas, rural places are also getting the touch of digitization in banking. But the banking sector of the future is preparing for something very big. In a survey, 66% of global banking executives say that their traditional value chains are being replaced. Around 61% of them told the competition they face is coming from new, unexpected areas. Innovation is happening in and around the banking sector at what many consider to be an alarming rate. 

Even though digital transformation is a part of today’s financial improvement, we still lag behind a lot. Most of the front and middle office works are carried out by humans even today. Only back-office jobs got the sophistication to turn digital in the modern world. Fortunately, this is just the tip of the iceberg. The future is anticipated to bring a slow evolution where the banking system functions only on digital means. To be successful in conquering the digital-only world, the banks of the future will have to embrace emerging trends, remain flexible to adopt evolving business models, and put consumers at the centre of every strategy. In this article, we tell you how the banking sector should get prepared to envisage a digital blow in the face. 

Become a data and analytics leader

Data is the new gold of the century. It is not different for banks. Henceforth, the banking sector should be ready to embrace data and analytics to withstand the digital transformation. By doing so, banks will be able to deliver a customized and personalized customer experience Therefore, becoming a data and analytics leader serves two purposes. One, it makes the bank ready for the digital future, and secondly, it is addressing the quest of consumers to get special products and schemes under personalization. 

Go, get the innovation

Innovation is the foundation stone of digital transformation. Researchers and scientists are also engaged in finding cutting-edge technologies that will take digitization to another level. The same goes for the banking sector as well. Innovation and digital transformation are entwined and correlated to one another. Henceforth, before preparing for a fully digitized workflow, banks should first embrace all the incoming innovations to streamline the digital banking process. 

It is either adopt or lose situation

Customer churn is the major threat that might even collapse the bank at a certain stage. Customer expectations are evolving. They are experiencing services from various financial institutions. Henceforth, they have a lot of choices to choose from. The major aspect that brings customer churn is the lack of communication between banks and consumers. But technology has a solution for this. Bots are being employed in the banking service to take up customer calls and chats. Bots are small crumps of the big cake. The banking sector should be ready to adopt all technologies that they think would win over customer’s needs. In case if they don’t do that, they are on the verge of losing. 

Where are big banks aiming at?

While the financial sector is busy hunting down emerging technologies, big banks are surfing through the world’s greatest economies to make a big profit. In a similar move, Revolt, an online banking start-up based in the United Kingdom is planning an expansion into the highly populated country, India. Even though India is a middle-income company, its exploding number of people and their engagement in banking services is attracting global banks. The revolt had tapped Paroma Chatterjee, a former executive for Indian start-ups Flipkart, Via.com, and Lendingkart, to lead the company’s operations in India. Revolt will make its debut in India by investing US$25 million into the Indian market over the next five years and aims to launch its app by 2022.