3 big trends in banking that could have a positive impact on your business
It’s well known that the banking industry is undergoing some profound changes due to the impact of digital disruption. After participating in the Future of Digital Banking event recently held in London, we’ve uncovered three trends in banking that you should be aware of:
- banks are adopting best-of-breed uses case in order to more effectively reach consumers,
- banks are looking at new technologies to give them unique ways to engage these consumers, and
- banks are driving change management within their IT departments to do things more efficiently and in better alignment with business goals.
Let’s discuss these three shifts in more detail.
Historically, the banking industry has been a pioneer of technology adoption. All of this changed with the dawning of the Digital Revolution just a few years ago. Instead of innovating to keep pace, banks have been watching their customers leave in droves and flock to more nimble technology upstarts. Banks are now caught in a game of “catch up” and they have to do it fast. Here’s how banks can capitalize on these trends.
- Leverage proven use cases from other industries
The first way banks can catch up is by adopting functional use cases from other industries to increase their engagement with consumers through customer service or via their retail channels. For example, we frequently see customer service departments looking for mobility applications to better communicate with customers on their terms, and we see marketing departments searching for proven best practices to reach out to consumers in new and effective ways through multiple touch points. They can use proven use cases in CPG, Retail, Travel and the Media industry as successful models that would directly apply to banking.
- Take a step-change approach to modernization
A second shift we’re seeing is banks getting rid of their legacy technologies and moving towards next-generation solutions in order to modernize their technology landscapes. Rather than having to create these technologies from scratch, banks have an opportunity to adopt new technologies already proven in the marketplace, and get them up and running quickly. These include advanced analytics to improve cross-sell and upsell, and real-time text- and audio-mining solutions to deliver unique customer experiences.
- Do IT differently
Finally, the third big trend we’re seeing is on the process side: for years, bank IT supported the business long after decisions were made. Now, IT is being viewed as a change agent and shifting the banking landscape for the better. This new way of working with the business is more agile, and there are more ways of doing IT than ever before.
At Mindtree, we have worked with many of these cutting-edge technologies and change management processes that banks are beginning to use to transform their own businesses and win back customers. We’ve helped leading CPG companies to design and develop use cases; we’ve worked closely with companies in the travel and retail industries to modernize their technology environments; and we’ve enabled large global technology companies to implement successful change management processes. We’re uniquely qualified to help banks to analyze what they’ve done organically over last few years and what type of leading initiatives (such as functional, technology, and process) they should be driving to become the next-generation digital bank. Drop me a comment if you’d like to learn more.