Gary Kern, CIO, MutualBank
Banking scenario has been travelling through tremendous technological changes over the years and the companies are becoming more equipped to provide banking and customer services at an enhanced level. Especially after the evolution of e-Banking, banks have to deal with mass of data for which they need to deploy appropriate technology involving huge investment. In order to acquire more customers and retain the existing ones, accurate data management system becomes necessary. “This is mainly concerned about pulling together multiple sources of data in order to get an accurate customer perspective. Technology, in this case, has a vital role to play in boosting up the IT infrastructure linked to the long-term vision,” states Gary Kern, CIO, MutualBank.
Banking Technology Potentiating Actionable Data
The rise in e-Commerce and related transactions has led to a significant increase in banking transactions. As a result, the outstanding credit card loans have also surged. This suggests the magnitude at which banks are forced to deal with more data that are sweeping in at a dizzying pace. Additionally, the scenario emphasizes the importance of a robust and scalable IT infrastructure. “The data that you own and to get the most out of it will be the key factors in determining your profitability. If you have to focus more on the core functioning areas, then you have to transform your traditional processes to cloud. This will enable to focus the extra time, efforts, and energy on other technological areas which need special attention so that they can be leveraged as much as possible,” explains Kern.
The bank’s IT vendors, play an important role in recommending the appropriate IT infrastructure that drives them toward the achievement of long-term goals. They have to predict the digital trends that are going to rule the banking sector in the future which will create a huge impact on banking technology. Vendors acknowledge the opportunity that exists in providing technology to banks but are also aware of the fact that the approach of one-size-fits-all does not work. This calls for the need to design a befitting IT infrastructure depending upon their data requirements of banking customers to boost up the actionable data for profitable banking transactions.
Actionable Data Insights
The influx of data that is received, processed, generated, analyzed, and stored requires an inbuilt technology to get done in a systematic and cost-effective manner. This is where Cloud and Big data analytics come into picture. A prime concern for banks is to become an everyday bank. To achieve this priority, they have to digitize their banking operations and become a part of an interconnected ecosystem of cross-industry providers that moves around the everyday needs of the customers. “After incorporating the right technology, the time spent on actionable data will be reduced and the efforts and focus will be directed towards consolidating a lot of various sources so that the actionable data insights can be easily get,” points out Kern.
Satisfying Customers with Improved Performance
Banking institutions have to integrate data across the enterprise to have a 360 degree view of the customer involving extreme channel integration and flexible IT systems which is not an easy task. It can be implemented through specific types of technology that will give competitive edge in the banking industry. First of all, you have to appoint a cross-functional team to develop end-user experience based on a deeper understanding of who they are and what they really want. Next, you have to make a list of the expectations of your customers and match them with your current products and services so that the gaps can be identified. Develop a comprehensive understanding of software intelligence and the advantages it provides—from making decisions to self-evolution and exploring opportunities for innovation.
In order to integrate technology, you have to reveal opportunities so that you can improve the operational efficiency of your workforce and security of operations. Also you have to utilize the knowledge derived from the human resources, business, and technological domain. These strategies will reinforce you to digitize your operations to meet the financial and non-financial needs of the customers.
Digital Banking for Smarter Banking Operations
Nowadays, it has become a necessity for all the banks to adopt digital banking to ensure easy, secure, and speedy banking transactions to their customers. For this purpose, they have to adopt the following four important digital banking techniques:
- Increased use of consumer analytics through crowdsourcing
- Focusing on mobile-first design
- Focusing on security and consolidation
- Improved customer incentivization
These digital investments will certainly have a positive impact on the customer response as they will facilitate them to have an easy access to all banking operations.
Banks in Social Media
The banks are becoming more digitalized than ever before so as to provide assured banking services in terms of security, easy accessibility, and operational efficiency. However, any new delighter service goes on to become an expected one over time. Now it has become extremely important for banks to have a social presence. Social media is an excellent platform to interact directly with the customers. Social networking sites such as Facebook, Twitter, and LinkedIn are helping communicate and people have become more expressive than ever before. Hence, banks can use social networks to interact not only with their current customers and also with potential clients to retain them by offering deals on their products and services.
Thinking Different Makes a Huge Difference
The banks have to think outside the box in order to update themselves according to the changing customer demands and market requirements. They have to identify the areas of comfort and need to get acquainted with the frequently used skills. However, growth and learning come only when you are uncomfortable and challenged. And the most important of all is to maintain good and frequent communication with the customers. Also the banks should be keen “Whatever the innovative technologies come in to the banking industry, you have to include innovation based on what your business needs and not the technology,” concludes Kern.