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BAAS (Business Banking as a Service) is Empowering Your Customers

BAAS (Business Banking as a Service) is Empowering Your Customers

Commercial banking is confronted with a potentially more complex environment than ever before: customer needs, rapid improvement in digital capabilities, digitization, and new sources of competition are compelling banks to innovate immediately.

For one, customers demand immediate, smooth, and omnichannel banking. Secondly, the pressures for product and service innovations are made more complex by the embedded demand for financial services in corporate processes.

Data, Digital, and Technology impact Business Banking and Empowers Customers

As superior technology systems integrators like Maveric would report, banks are preparing for cloud- and API-enabled ecosystems with the help of AI-enabled, networked technology.

Cloud and API technology adoption

Commercial banks collaborate with modern infrastructure providers to upgrade or overhaul legacy technologies. Digital services, such as lending origination and onboarding, replace manual processes and antiquated systems with a single, end-to-end solution that serves SMEs, corporations, and commercial clients. As part of digital transformation, banks have made substantial investments in automating their origination platforms. Moreover, APIs facilitate new collaborations and partnerships between banks, digital banking enterprises, and Fintechs. Moreover, with lower entry barriers, new cloud-based lending services are being rapidly implemented.

There is an immediate need to accelerate the time to market

Digital disruptors innovate through automated document population, e-verification, and verified external data validation to ease servicing evaluations, financial spreading, and deal structuring. As a result, the time required to make a credit judgment quickly decreases.

Data value creation will differentiate performance

Leading commercial banks are transforming their roles to become both producers and consumers of data, for instance, by selling their payment, trade finance, and lending capabilities to other entities. The vast amounts of data created enable commercial banks to strengthen their client connections by personalizing digital experiences and sending highly customized, timely messages based on in-depth consumer information. Niche solutions can be incorporated in a data environment where rivals can be partners.

Integrating financial crime prevention, cybersecurity, data privacy, and regulatory requirements into the engineering and design lifecycle

By integrating new technologies, collaborating throughout the ecosystem, and focusing on data and client security, banks are altering their capacity to combat financial crime. Cybersecurity, once considered the final frontier is now the de-facto foundation of trust and an integral part of every product and service.

Architecting the modern-day commercial banking ecosystem

Leading commercial banks have created platform-based ecosystems that extend beyond traditional banking and cater to a broad spectrum of customers’ growing needs. The future of commercial banking is platform-based service models and competitive ecosystems enabled by data and cloud technology with API access. This situation allows banking systems of the next generation to service multiple individualized client segments. “Platformization” will increase the availability and velocity of innovation for products and services and dramatically cut the time required to gain mainstream adoption. It can also enhance banks’ data collection and analytical capabilities, giving them a significant advantage over non-financial competitors.

Conclusion

Commercial banking is undergoing fast change through digitization, more competition, and stricter regulation. Small and medium-sized commercial banks are adapting to remain competitive. The way forward for Banks and leading FIs lies in evaluating their maturity, shaping their transformation agenda and strategies, and deploying enterprise-wide enhancements to the goal of value maximization.

About Maveric Systems

Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.

Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.

With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.

 

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5 Ways FinTech’s are Transforming Banking

5 Ways FinTech’s are Transforming Banking

Banks have used technology to deliver financial services for decades – Credit cards in the ’50s, internet banking in the ’90s, and contactless payments in the ’00s. However, the stratospheric use of technology has only upped the ante. Some instances highlight this. Like the Neo banks (Brazil’s Nu Bank, Berlin’s N26, and the American Chime) operate their complex operations purely on tech without physical branches.

Innovations that FinTech’s represent are primarily focused on improving customer-facing facets. The three growth levers that drive Fintech growth rates are – superior CX driven by the high trust earned, new-age branding, and marketing approaches, including gamification and cost optimization possible because of deep venture capital and leaner virtual operations.

FinTech’s straddles a complex intersection of financial services and technology sectors that disrupt the traditional value chain.

 

 

5 Ways FinTech’s are Transforming Banking

 

1.  Disintermediation is the most decisive Fintech impact. 

Fintechs have primarily disrupted consumer banking, fund transfer & payments, and consumer & commercial lending by offering new customer-centric solutions, leveraging data and analytics to enhance interactions, build trust, and even powering business outcomes with sophisticated operational abilities. As the industry grapples with changing customer behavior, new technologies, and new distribution and business models, Fintechs’ product focus on millennials and Gen Z is characterized by enhanced accessibility, convenience, and tailored products.

2.  With Blockchain technology, Fintech’s game-changing prowess grows stronger.

As Blockchain tech pushes for a democratized financial landscape, Fintechs eye its unprecedented disruption potential. Be it through the use cases of borderless payments, altering KYC forever, bankless financial management, and revolutionary optimization, Blockchain’s digital ledger systems attract because of its un-hackable nature and by removing third-party intermediaries. Like ERP software allows functions and entities to optimize enterprise processes by sharing data and logic, Blockchain enables entire industries to optimize operations by sharing data between businesses with competing economic objectives. With infrastructure cost reduction as a key differentiator, the blockchain trend will likely throw up the highest Fintech winners in the next few years.

3.  Fintech’s infuse agility like never before

As mentioned earlier, Fintech innovations reimagine customer-facing digital experience blocks. With advanced self-service capabilities, Fintechs have revitalized the customer banking possibilities. Today opening new accounts, applying for loans, buying insurance, understanding financial positions, and making better financial decisions are seamless activities customers use and love because of Fintechs. These functions (also how mobile wallets ‘ talk’ to banks) are possible because of API development (Application Program Interfaces). In the same vein, POS terminals have revolutionized the way consumers spend and receive funds. Any discussion on agility is incomplete without acknowledging the growing influence of conversational banking (or voice bots) and the continual advancements in user authentication and security.

4.  Bank-as-a-service – The change agent of 2020s. 

BaaS is a type of developer platform designed to empower fintech companies. The Bancorp Bank, BBVA Open Platform, and Green Dot have launched their own BaaS platforms.

To access the payments system and store money, Fintechs form banking partnerships. These partnerships are becoming the product themselves. As several banks enable digital disruptors and neo-banks to gain access to inexpensive deposits, they earn valuable fee income. Treasury Prime sells BaaS enablement software to multiple banks while SynapseFi and Cambr build API platforms for neo-banks. Along with SaaS Fintechs that offer cost reductions to banks, the BaaS ecosystem is poised for hyper-growth.

5.  Technology Players turning Fintechs – The Maze Multiplies. 

Fundamentally, Banks sit at the sweet spot of data and technology. One disruptive business model gaining strength is high-technology companies (Amazon, Google, and the like) entering the Fintech space. The two domains, banking and software development, share similar concepts – record-keeping, tracking transactions, and predictive modeling. Digital-first companies turn their eyes to banking – Apple’s credit card, WhatsApp payments, Instagram shopping, Google Pay, and Facebook’s foray into financial services – are all developments that point to a more serious future. Expect the resources and investments to multiply, and the partnerships that aim to scale growth will transform banking in ways we don’t fathom.

In sum, leading Banks are learning from the Fintech story. The banking space is poised for exciting developments by encouraging and incubating internal innovation, creating an agile enterprise, aggressively digitizing the customer experience, adopting an entrepreneurial mindset, and overhauling brand positioning to attract purpose-driven demographics.

 

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Regulatory Reporting in Banking

Regulatory Reporting in Banking

Regulatory reporting and compliance is an unavoidable subject in Banking. It is a critical activity for banks and financial institutions, which requires, sustained effort from risk, finance, and IT teams. Many banking and financial organizations struggle with the high level of redundancy, dependence on manual processes, and opacity of their regulatory reporting processes.

Alarming Facts for Regulatory Non-Compliance in Banking

Current Outlook: Why it Needs Attention?

Many regulatory reporting processes are internal to the organization, but there is a regulatory body that oversees compliance. These regulatory bodies are dependent on the industry that the organization is part of. For the BFSI vertical, it is the Fellow Chartered Accountant (FCA), the energy industry is Office of Gas and Electricity Markets (Ofgem), advertising is ITC and the communications industry is “The Office of Communications” (Ofcom).

Like most regulatory bodies, FCA and others engage in periodic reviews. During these checks, they not only check what your organization is doing at that moment but also a back story to that point. Some of the most common forms of regulatory reporting in practice today include:

Complaint Handling Process: The complaint handling process checks how the business handles complaints and the official procedures in place to make sure it is productive and fair. Once the business has established a fair and process-driven system, the business should adhere to it and also make sure it conforms to regulation.

Training: This has to do with the processes the business puts in place for performance reviews, appraisals, CPD, and on-the-job training. Regulatory reporting ensures all of these processes are fair and above board to the parties involved.

Procedures and Processes: These check all the processes and procedures for operation in an organization regardless of how complex or diverse they may be. These processes are as intricate as the method of signing paperwork, explaining terms and conditions to customers, and others like that. All of these are examples of regulatory reporting as it is mandated and regulated.

Record Keeping: This is the basic form of regulatory reporting that most organizations do in some form or the other. It is the process of keeping and maintaining accurate, detailed, and accessible records of all the transactions carried out as regulatory bodies check it. These records also include the organization’s adherence to process in whatever form that may take. It should also cover penalties for whenever anyone deviates from the specified protocol.

Challenges Banks and Other Financial Organizations Face with Regulatory Reporting

Banks find it difficult to keep up with the fast-changing and increasing regulatory requirements.

The fast pace increased complexity, and granularity in the regulatory reporting requirements are putting banks under more pressure even with stretched budgets and resources. This challenge is more apparent for banks that cut across several regulatory jurisdictions and many of these organizations are constantly looking for ways to standardize reporting and stretch data models.

Reporting timeframe
of regulatory reporting reduced from months to weeks for improvement and a timely view of the financial risks.
Data integrity and quality
with less than effective data quality frameworks. Studies show that 31% of institutions view data quality as a major challenge to effectively meet all the compliance requirements. Also, analysts spend a lot of their time in data collection and organization duties making them spend less time on data analysis.
Effective Tracking
Maintaining an end-to-end data lineage to make it easier to track the final numbers back to the origin for quicker validation during onsite inspection.
Legacy Systems and processes
Core systems are dependent on many manual processes and multiple independent systems to meet up several complex requirements. It puts immense pressure on time, accuracy, resourcing, and efficiencies. This inflexibility affects adaptability to the constantly evolving regulatory requirements.

Emerging Trends in Regulatory Reporting

Technology is at the center of developing a culture of a comprehensive and proactive approach to help regulatory reporting. Compliance has gone beyond adding new resources for better effectiveness as it has shown that a gradual and planned adoption of new gen technologies such as AI, Cloud and Big data technologies etc, can help handle the challenge banks and other financial institutions are facing

Regtech is the management of regulatory processes in the financial industry through technology. It can greatly help combat the challenges listed above and make regulatory reporting processes more efficient.

Effect of COVID on the Regulatory Landscape Today

The pandemic led several governments to shut down their economies in a bid to contain the spread. This had a direct effect on regulatory reporting as the operational and economic resilience of the global financial system is now the topmost priority of many regulators.

Banks have the pressure to continue lending regardless of the shrinking revenues, increasing cost reduction measures, increasing liquidity risk, and unstable workforce productivity because of remote working. Regulators are trying to establish a balance between putting adequate measures for risk assessment and mitigation to prevent a financial crisis by relaxing the following activities:

  • Deferring the submission deadlines for regulatory reports
  • Relaxing several reserve ratio requirements and buffers
  • Loosening the implementation deadlines of new regulations
  • Suspending non-critical supervisory examination activities
  • Allowing early adoption of exposure/risk calculation methodologies

How RegTech Can Solve the Puzzle?

Using RegTech involves technology-driven improvements to the operating model of banks so that their regulatory reporting effort and spend are more efficient and creates value for all parties involved.
Global Tech Investment

There are two main options by which RegTech implementation can greatly improve regulatory reporting:

Delivering Actionable Insights

RegTech can give organizations actionable insights into new and emerging regulatory requirements so they can improve efficiency in their compliance process. This removes any confusion about the constantly updated regulatory reporting methods so the organizations can save costs. These insights also include new technologies like advanced analytics, robotic process automation (RPA), cognitive computing, and distributed ledger technologies.

These technologies help organizations implement strategic end-to-end reporting solutions. The processes include extracting input data, checking the regulatory calculations and mappings, generating regulatory returns, and producing management information for analysis. Organizations can always stay up to date with any new changes in the regulatory and compliance methods of the appropriate bodies that guide them.

Cloud based Solutions

Banks can easily build robust platforms for automating financial compliance using cloud based RegTech solutions. These solutions can embrace the powers of AI and ML for offering greater agility to banks and regulators. Potential risks, threats and cases of non-compliance can be identified faster to take necessary actions. Cloud solutions also allow banks to easily exchange data. This streamlines the entire effort towards data reporting.

Point to Ponder

A research study conducted by Bank of England revealed the UK’s 30 largest banks have adopted nearly 2,000 cloud-based applications between them.

Conclusion

Financial institutions that implement or adopt Regulatory Technology will be adaptable to any fundamental shifts in the future. Apart from the technology used to run these processes, developing a granular and centralized data model to maintain, govern and document is important in delivering a an efficient and reliable solution to relevant stakeholders.

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Legacy modernization will lead the future of core banking

Legacy modernization will lead the future of core banking

Fintech has taken the banking industry by storm. The influx of innovative technologies, cloud banking, and sophisticated processes have led the traditional and incumbent banks to rethink and realign their way of operating. Fueled by the 2020 pandemic, there is a growing need for the modernization of core banking systems to support the ‘new normal’. The modern core banking systems require better agility, flexibility, and scalability to respond to evolving customer demands. Traditional banks have pushed themselves to meet the inherent capabilities of the new normal. To remain competitive, the future of successful enterprises relies on modernizing core banking systems.

Ensuring business continuity by embracing internet banking, in all its glory, is just a small and hurried step toward digitization. But to add value to the digital revolution, enterprises will require a long-term vision, strategy, and approach for the systemic migration and adoption of advanced technologies. The biggest challenge for banks is overcoming the limitations of legacy systems in a microservices-era.

Before we address the need for an expert service provider for a successful transformation to advanced digital systems, it is imperative to comprehend the key features of modern core banking along with its benefits.

Why Banks Need to Modernize Their Legacy Systems

Core transformation can no longer be ignored by financial institutions that are still reliant on legacy systems. While the high costs of transformation have held back most organizations, the benefits of legacy modernization far outweigh them. Common motivations for legacy modernization include:

  • Marketplace relevance: To enable digital competitiveness, core systems should have the capabilities to support myriad digital endeavors. Today, these digital capabilities are bundled with new and emerging technologies of artificial intelligence (AI), machine learning (ML), blockchain, and others to stay ahead of the competition. For enterprises, market relevancy is just not about being digitally-abled, but to be able to capitalize on their digital capabilities.
  • Better use of human resources: Legacy software and systems are known to be complex environments that are difficult to manage, navigate, and understand. The outdated UI does not support the user-friendly and intuitive interfaces that the new-age employee is used to. Getting used to this setup would require additional training – increasing costs and effort. Modernizing your legacy system will save time, reduce dependency on expensive talent for legacy technology skills, and optimize cost-per-hire.
  • Improved services: Influenced by eCommerce and other retail sectors, the modern consumer has come to expect the same flexibility, ingenuity, and omnichannel experience from their financial providers. The slow, often crashing, and poorly performing legacy systems fail to deliver the agility and scale that modern processes demand. Modernizing the system allows for process simplification, personalized user experiences (e.g., AI/NLP-based chatbots), and allow for better cross-selling of products – leading to enhanced service levels, product innovation, and customer satisfaction.
  • Enhanced security: Aging and outdated systems are vulnerable to cyberattacks and malicious activities. Most legacy systems no longer receive vendor support and miss out on critical security patches, upgrades, and new functionalities. For instance, BlueKeep is a notable vulnerability identified in NT-based Windows operating systems. Although most organizations have stopped Windows XP or 2000 usage, most still rely on Windows 7. Similarly, Windows systems are also vulnerable to SMBGhost or CoronaBlue; allowing malicious players to remotely take over systems. Such vulnerabilities leave your enterprise open to security breaches that can be very costly to banks.
  • Highly cost-efficient: Legacy systems are notorious for rising hidden costs for an enterprise. For instance, in 2019, the US Federal government spent 80 percent of its IT budget on maintenance and operations or around $337 million of taxpayers’ money. Modernizing digital core banking systems can significantly reduce operational costs and service delivery costs.
  • Enhanced optimization: Basing strategies on scaling economies and commercial platform vendors’ capabilities improve user productivity enabling better optimization. Modernizing legacy systems also enables the banks to adopt “configure model” instead of “customize model”, thus, eliminating technical redundancies.
  • Becoming future-ready: The future of banking is defined by emerging technologies, dynamic business models, and rapidly changing customer expectations. To be future-ready, banks need to drive system transformation today. The push for open banking initiatives also highlights the need for a modern system that supports user-experience centric core banking system requires a microservices-based architecture and robust API framework for third party integration. Having up-to-date digital systems will further help in reasonable and easy-to-maintain upgrades in the

The Big Question: How to Modernize Core Banking?

Addressing the challenges of the near future and the next normal would require a thorough assessment of the current core banking platform and external environments. Modernizing requires a disciplined and well-thought approach. Banks will need to understand whether a full replacement or a systematic upgrade will offer a better value-to-risk ratio.

  • Full replacement: Immediate replacement is not only too risky but can be quite expensive and time-consuming and should only be opted in those situations of sudden regulatory imperatives or obsolescence. The biggest catch in full replacement is that the benefits or any internal issues can only be realized or tracked when the migration is complete, and the legacy system software is de-commissioned.
  • Progressive migration: The most popular strategy amongst banks, also known as phased migration, undertakes a systematic and steady migration approach. It allows the banks to keep working with legacy systems for a considerable amount of time while simultaneously building a modernized architecture to be smoothly introduced and transitioned into.
  • A greenfield banking approach: Developing completely new technologies in new customer-centric environments without any constraints based on the legacy systems are a few of the many building blocks of the Greenfield approach to driving the digital transformation of the banks. It is becoming the most effective alternative for traditional banks to test the waters and then adopt the most suited technologies.

Core banking modernization best practices

  • Assess the company’s technical debt: Banks should be able to closely identify and calculate their technical debt so that they can properly prioritize the debt and its impact on the legacy system processes.
  • Identify the organization’s objectives and examine risk tolerance: The banks, when going for legacy system modernization, must assess various business variables like customer satisfaction levels, modernization objectives, cost savings, business continuity, and risk management. These thorough assessments help to provide context for the selection of the most efficient and effective modernization approach.
  • Choose futuristic solutions: The technological advancements are taking place at an unprecedented scale, requiring organizations to be agile in the adoption of future technologies. For this, it is imperative to build solutions that support future adaptability.
  • Extensively define the post-release strategy: One of the most crucial modernization practices is to create a follow-up plan that includes successful training of employees, ensuring systematic and streamlined process, timely update schedule, and undertaking other maintenance tasks.

Using Temenos for Legacy System Transformation and Modernization

The industry leader in banking software, Temenos, has rolled out multiple products to help banks overcome legacy issues and drive successful transformation to foster an improved and more efficient working environment for the banking institutions. However, the complex nature of the finance industry along with rapidly evolving technologies, finding a partner with deep expertise and vast experience in the deployment and configuration of Temenos is crucial to leverage its benefits.

Maveric, being a leading provider of end-to-end digital core banking solutions for more than two decades, is also a certified Temenos strategic partner helping banking organizations to modernize their legacy systems to obtain better business outcomes like increased revenue growth, cost savings, and enhanced customer satisfaction.

Conclusion

As the world adjusts to the new normal, the solution to legacy systems is the modernization of core banking systems. Banks looking to enhance their IT efficiency are turning to innovative technologies of AI/ML, cloud computing, and the internet of things (IoT). The integration of new technologies unlocks the growth and revenue potentials of banks while building a loyal and satisfied customer base. It also enables real-time systems that are agile, scalable, flexible, and cost-effective.

This article is originally published in Finextra

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Banking reimagined – How to prepare for the period after COVID-19?

Banking reimagined – How to prepare for the period after COVID-19?

The global banking system had been witnessing a positive streak for the past few years with stable ratings across most countries. It was progressing towards and preparing itself for the next wave of disruption with blockchain and AI-backed technologies as its epicenter.

However, in January, the world was hit by COVID-19, a pandemic no one ever saw coming, let alone being equipped to mitigate it. The crisis resulting from a total lockdown scenario changed the face of businesses and everything else around the world, including the banking industry. It threw the banking sector into the spotlight, coaxing it to accelerate digitization overnight.

The pandemic, undoubtedly, has become the turning point for the banking sector as well as its workforce and its customers. The ones who have been resistant to going the digital way have been compelled to adopt and embrace digital banking at full throttle.

The shining moment of this transformation has been the observation that more people are realizing the convenience of digital banking and are now reconsidering their bank branch visits altogether. Some of the banks and financial organizations have come to daunting realization about their archaic processes and the urgency of developing meaningful digital banking experiences, while the others are contemplating to decrease their branch budgets and networks and reinvest in digital channels.

The digital transformation of banks

World Economic Forum in its recent report hinted on the dire state of the world economy; indicating that the containment measures are having an inversely proportional effect on the economies where the ‘economists cannot even begin to predict the end of the recession that is now underway.’

The banks have been playing and will continue to play the lead role in the recovery of the global economy. Some important points to keep in mind are:

  • Worldwide, the banks have been operating with limited staff and have tirelessly worked towards making work-from-home possible to ensure the continuation of seamless financial transactions, showing that they too are the front-line heroes who are determined to fight against the virus with all their grit.
  • The authoritative banking regulatory bodies in most countries streamlined the measures regarding easing-out debt obligations and extending leniencies, such as moratoriums on funded facility repayment.
  • Globally, the banking sector proactively addressed the need for better and more secure digital banking solutions to help their customers to carry out essential financial transactions without risks.

In short, the focus of banks around the world during the pandemic-led lockdown has been to offer essential services and extend support solutions with optimum attention to quality, customer experience, security, and risk control, with the safety of their workforce and customers as their priority.

After withstanding these times of crisis, the banks have also realized that it cannot dwell more on the subject and will have to rapidly start creating a smarter digital banking framework if they want to sustain themselves in the immediate and long-term future.

Considerations for the digital journey ahead

As the digital transformation of the banks takes the center stage, they need to gain deep insights into its multiple variables. The aftermath of COVID-19 will present completely transformed customers and customer demands. Robust, secure, and fast digital banking solutions will be the key drivers of customer experiences.

To retain their existing customer base and stand their ground against the neo banks and the challenger banks, traditional banking institutions will need highly integrated and scalable digital solutions. While cutting costs may become more pressing than ever, the banks will have to reprioritize their spending and dedicate adequate resources for digital transformations, cyber security, and data protection.

Another important pre-requisite while mapping the digital journey is to develop better operational capabilities. A transparent strategy along with an AI-powered operating model inclusive of clear-cut consumer-driven policies is what the banks need to prepare for a successful digital future.

The banks after COVID-19 – what will they look like?

The major transformation the banking sector will be experiencing is in terms of their radical shift from dragging legacy technologies to embracing more agile and scalable tech solutions fueled by artificial intelligence through varied collaboration approaches with fintech, big tech and ecommerce companies. When customers would prefer to operate their account online all the time, they would demand better designed, intuitive, and secure applications from the banks.

Digitizing the entire banking system will require a high-performing, interactive, secure, and UX-focused design. A prim and proper UX design guides the customer to complete their intended tasks securely, quickly, and easily. Trust is the core factor in banking and a good UX design would aid in achieving greater customer satisfaction ensuring enhanced customer loyalty.

So, the prime question becomes, how to architect an ideal digital banking solution with UX as its focal point. I believe, for building an impressive, engaging, and resilient digital banking system there are many customer-centric factors the banks will need to consider. The most crucial ones include:

  • Simplicity of the UI:The aversion towards adopting online banking is majorly due to the complexity of online experiences, making navigation challenging for the users. Simplified and easy-to-comprehend systems are critical to incorporate when digitizing the future banks.
  • Ease-of-use: Banks are now innovating and trying to make it as easy for users to get connected with them and operate their accounts. Apart from simplifying the apps or web-interface, they are starting services like online chat with bank agents, AI-based chatbots, digital identity verification without requiring users to visit branches,  etc., enabling more customers to go digital with ease.
  • Attractive UI: The digital space is highly driven by the visual aesthetics and is key to make the right first impressions on the customers. This applies to the banking sector, too. The more compelling and friendly your UI design; the better the customer experience.
  • Personalization: From fashion to information consumption, the customer is demanding and embracing personalized experiences and will have the same expectations from digital banking solutions, too. To achieve this, the banks will need a robust AI system for analyzing customer journeys and custom-suit banking products that they need. Personalization will be the key driver for meeting the online sales targets for the banks.
  • Transparency and security: Transparent banking processes and the seamless security systems will be the vital principles forming the base of a good UX design. The effective measures to ensure data and transaction security, along with efficient communication will be key to engaging and retaining the customers with more digital products.
  • Mobile-first approach: The future of digital banks is in the palm of the people. A Deloitte survey found that out of 73 percent of people globally who use digital banking at least once a month, use mobile banking apps as well as access the bank’s websites through their phones. Taking into account the growing number of mobile users worldwide, banks should be building mobile-friendly apps and responsive websites with customer-focused personalized solutions.
  • Digital banking ecosystems: With increased competition from the new entrants in the banking space, the development of ecosystems connecting banks, fintechs, marketplaces, other digital platforms into a single environment, with services being available seamlessly in a few clicks, is inevitable. The customers will soon demand an integrated banking platform and it is the right time to prepare for it.

Be at the forefront of the digital revolution

By the time the world recovers from the aftermath of COVID-19, banking institutions would have seen a vast transformation in their systems, processes, and customer relationships. New future-ready, digital banking solutions will offer as secure, as easy, and as welcoming customer experiences as the brick-and-mortar ones provide. At Maveric, we help banks accelerate their transformation initiatives by integrating domain, UX design, technology, strategy, and execution. We have been enabling banks to achieve their customer satisfaction goals and accelerate their digitization journeys with modern technology solutions. A calculated and well-thought plan and collaboration with the right fintech solution providers will help get you ready for this dynamic and ever-evolving journey of going digital and help you to rise above such extreme situations, now as well as in the future.

This article is originally published on Emerging Payments Association and can be accessed here

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