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03. 12. 2018

6 innovation strategies for retail banking – W.UP Digital Banking Weekly

Conversational interfaces, biometric authentication and holistic credit evaluation should be in the innovation focus of banks, PSFK and Microsoft believe. And banks must also take note of the increasing effects of scrapegators.

6 innovation strategies for retail banking – W.UP Digital Banking Weekly

What banks should really focus on in digital

The ability to analyze data in real time and accurately forecast outcomes is becoming imperative for organizations to remain competitive, according to the Digital Banking Playbook, published by PSFK and Microsoft. The report devised six strategies for retail banks to use in catering to the needs of their clients. It suggests, among others, that banks should develop conversational interfaces with digital assistants, use AI-enabled tools to get more behavioral-based assessment of creditworthiness and provide biometric authentication.

Consumers opt for third-party apps, not their banks

About 8% of all online banking logins are coming from a scrapegator, a bot accessing not a real person, the latest report by Malauzai Software said. It said logins roughly correlates to end-users, so 8% – 10% of online banking end-users are choosing to scrape. This means that consumers are not finding the feature in Internet banking and they are finding it in a fintech vendor. Banks are at some level failing to meet the needs of their consumers, the firm said.

Mobile banking to overtake online this year

Over 2 billion users will access retail banking services via smartphones, tablets, PCs and smartwatches in 2018, up by 10% from last year, according to new research by Juniper. Juniper expects that the number of global mobile banking users will now overtake online users in 2018, 2 years earlier than previously anticipated.

Investment in fintechs reaches all-time high

Global investment in fintechs rose by 18% to $27.4 billion last year from a year earlier, mostly because of a surge in funding for startups in the US, UK and India, Accenture has found. But it said mega fintech deals that had catapulted China to the top destination in the world for venture capital money in 2016 fell in 2017, as investors pulled back.

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