2020 has been a year for the history books, no doubt. Continuing our end-of-year reflection, this week we’re rounding up some of the best expert analyses, strategies and insights on navigating the digital banking landscape in the new year and beyond. Long reads ahead!
The rise of the invisible bank
“The idea of taking the card out of the wallet will seem archaic. What you think of as transactional banking will disappear.” In The rise of the invisible bank, American Banker takes a close look at the very real possibility of banks becoming embedded in our daily activities to the point of complete invisibility. The rise of wearables, biometrics, virtual assistants, banking-as-a-service and, let’s be honest, human laziness all point to this direction. But what exactly will invisible banking look like?
Top trends in retail banking: 2021
Incumbents look to emerging technologies to cut costs and boost CX as well as humanise and hyper-personalise digital experiences for deeper connections with customers. Others migrate to the cloud to create leaner organisations and spur innovation or champion green banking to stay resilient and competitive. These are only some of the findings in Capgemini’s newly released report on the drivers and risks shaping financial services in 2021. Click for the full story.
Reimagining customer engagement for the AI bank of the future
To stay ahead of the game, incumbent banks must become “AI-first” in vision and execution, McKinsey advises. “This means transforming the full capability stack, including the engagement layer, AI-powered decision making, core technology and data infrastructure, and operating model.” But how can banks take an AI-driven approach to reimagining customer engagement and gain a decisive competitive edge? Here are some pointers.
Banks will need to get to know their customers (again)
In banking, knowing your customers is key. Banks are required to verify customer identities and analyse financial transactions to fight money laundering, terrorist financing and tax evasion. And to offer relevant products, assess lending risks and optimise sales and service strategies, they must understand customer behaviours and needs at a whole new level. But what now that COVID-19 has torn up the know-your-customer playbook? Forrester weighs in.
Purpose-driven banking: Looking beyond COVID-19
Financial resilience is back in the spotlight – and so is banks’ role in helping people step up to the challenge. “Customers have seldom needed it more, shareholders are more accepting of the need for change and a strategic shift to purpose-driven banking is likely to yield benefits that will endure long after the current crisis has passed,” Accenture reckons. The banking industry has been long overdue for an overhaul of priorities. The time to take the leap is now.