In order to keep up with large commercial ventures, banks need to be able to sit in the financial landscape in a state of constant change.
This is a platform that combines technology, innovation and customer needs which requires banks to create new working partnerships and strategies to address these ever-changing needs.
More than ever, banks need to articulate a clear vision for the future. This includes such future plans such as deciding where they want to be, which market they see themselves in, and also the kind of customers they wish to attract.
Leaders of these institutions need to be on the cutting edge of transformations that can achieve their visions and also bring their shareholders along with them on that journey.
In order to keep up with their contemporaries in the commercial world, strategies need revisiting constantly as technological, science and digital breakthroughs provide an ever-changing platform and banking leaders will need to keep up with these fast-paced changes in order to remain the main players.
Reinventing business ecosystems.
Transformation on this scale requires banks to rethink every aspect of their whole business ecosystem. This could include collecting data using intelligent systems and also using robotic processing automation across many of their core functions both internally and externally to customers. These core functions can include capital management, regulations and compliance, and also including customer service applications.
Using emerging technologies, cloud providers can assist banks in many of their everyday functions such as perhaps using ‘pay as you go’ options – which offer more flexibility for consumers than the usual conventional fixed cost structures they are used to.
How banks can drive value
Other ways banks can explore new ways to expand their ecosystem to help drive both value to customers and shareholders is:
- Building new partnerships that can help banks to deliver new and improved customer experiences. In this, banks can take their lead from many of the digital giants, who are becoming expert at managing multiple relationships and giving a faster delivery to customers ever more sophisticated needs.
Banks can benefit from cloud-based technology, particularly in implementing microservices and also API’s to continue to effectively cultivate and manage these relationships easily and more effectively.
- Acquisitions can help grow banks and also help address some of the difficulties of innovation. Large financial institutions can work alongside using smaller players, which have the added bonus of being more flexible and also a fraction of the cost of developing in-house systems.
Pursue immersive innovation
Using state of the art technology and analytics tools, banks are more easily able to experiment with new ways of working scenarios and work on creating new product ideas much more quickly and effectively than by using older and more traditional methods.
This culture of experimentation will help them to start the innovation cycle. This cycle often requires institutions and financial companies to be able to fail fast, but gaining experience and learning during the process or to succeed and be able to pursue new innovative markets and ideas.
This integration between science, technology, and digital breakthroughs, also has the benefit of attracting and retaining the kind of top-class talent that fosters innovation, in new products and services, but also AI and augmented and virtual reality.
Using these methods can help banks change and improve business processes that can allow stakeholders to experience these new innovations live and happening.
Convergence driven by new players and emerging technology is constantly changing the financial services and banking landscape. However, the banks that choose to focus on simply making processes digital, rather than getting involved in convergence, may risk losing out in the competition for customer loyalty.
Only those banking leaders with the courage to embrace a dynamic, customer-focused strategy of perpetual reinvention can help their organizations emerge as the digital banks of the future.
Let’s finish looking into the changes we’re likely to see in the future of banking, with regards to new technologies and innovation with a thought-provoking quote from Rob Toguri, one of the partners, Ernst & Young LLP:
“Who you were yesterday isn’t who you will be tomorrow — or the day after that. It’s a state of perpetual reinvention, and it takes clear vision, data-driven technologies, and dynamic strategy.”
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.