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03. 26. 2018

Are you a true digital bank? Here is a test – W.UP Digital Banking Weekly

Is there a simple litmus test to check if a financial institution is really a digital one? Perhaps the way it speaks about digital banking could help answer that question.

Are you a true digital bank? Here is a test – W.UP Digital Banking Weekly

How can you tell if a bank is really a digital bank?

How can you tell if a bank is only aspiring to become a digital bank and is not yet one? Chris Skinner reckons it should be checked if they speak about channel instead of access, if they mention product instead of customer and if they tell you about functions, instead of culture. “The digital core is a consistent enterprise wide, cleansed data store that is accessible internally and externally through a strata of access layers and consistently with a single view of the customer,” Skinner notes.

Six steps to link regulatory and digital convergence

With the deadline for GDPR fast approaching, and other modifications on the horizon, banks should use their regulatory and digital programs to drive a step change in value, Gognizant said. It proposes a six-step approach to linking regulatory and digital convergence, which includes conducting a gap analysis of ‘as-is’ and target IT estate and merging the set of requirements to deliver goals in line with customer-centricity.

Banks face challenge in creating future value

Future value represents 49% of the total value of tech giants, like Amazon or Google, and 40% of the total value of fintechs, according to Accenture. This ratio is only 11% for banks lagging in digital transformation. “Future value” is defined as the premium investors are willing to pay beyond the value of current operations. It can be created through innovation and the ultimate objective of banks should be a circular path of growth and renewal, the report said.

Five ways fintech firms can help banks

Fintechs provide an opportunity to enhance loan portfolio diversification, they can help solve industry-specific points of pain, like securing credit card processing, transferring money, and processing loans quickly. These are only some of the benefits collaborating with fintechs could offer to banks. Shawn Ward, CEO and co-founder of Geezeo, has compiled a top list of the ways fintech firms help banks increase revenues, generate new business and enhance the consumer experience.

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