Posted by Sanat Rao (View Profile | View All Posts) at 12:06 PM
a bank's perspective, the glass is both half empty and half full as we head
into a new year. The financial services industry continues to experience
unprecedented change. One set of factors is purely environmental - sluggish
global macroeconomic growth that shows no signs of picking up, rising
regulatory capital and operating costs, depressed interest rate environments in
developed markets, large non-performing assets in developing economies, and
devalued currencies in several pockets, to name a few. This is putting further
strain on the banking business, which is already bogged down by a marked
slowdown in growth and profitability.
Continue reading "Trends Reshaping Banking in 2017" »
Posted by Richard Longo (View Profile | View All Posts) at 4:47 AM
Businesses across various and
diverse industries have seen rapid disruption in the past few years. One of the
major drivers for this disruption is the consumer and how they are coming to
expect a Frictionless approach. Some have called it the Uber effect. No cash is
needed, it is on demand and simple to use. That experience is what customers
are now expecting when interacting in the Ecommerce world. Many traditional corporates are playing
catch-up and some like Sears, JC Penny's, American Eagle, Sports Authority and
Barnes & Noble cannot pivot fast enough, leaving them in a position of
reporting negative growth or closing all together. Players like Amazon are disrupting
their business models by leveraging the latest in technology and rolling out
customer centric digital offerings. These offerings appealed to the digitally
savvy customers and those companies have grown rapidly over the past few years.
Continue reading "Accelerating journey towards digital banking with a 'Bank within a Bank' model" »
Posted by Puneet Chhahira (View Profile | View All Posts) at 9:56 AM
Digital disruption is paving the way for newer, more agile
banking models and India is becoming the poster child for banks all over the
world. Between the innovations in mobile and social banking, and progressive
regulations, India has managed to leapfrog the legacy systems and processes
that burden most banks in the world. One
of the most recent technology led revolutions in the banking front in India,
was the launch of Unified Payments Interface (UPI), by the National Payments
Corporation of India (NPCI). The UPI has the promise to be a game changer in
the era of cashless payments. Imagine a scenario where you don't have to jump
through all the hoops to make a payment, and just need a unique ID, similar to
an email ID, to make a payment. Imagine a cashless transaction, that doesn't
require you to type out your credit or debit card details.
Continue reading "Why India is a poster child for global banking models" »
Posted by Puneet Chhahira (View Profile | View All Posts) at 9:36 AM
The rise of financial startups has taken bank bashing to new
levels. FinTech has become a metaphor for all that banks should but could never
be. Enough and more has been said about what banks need to learn, not to
mention fear, from their new rivals.
But there is always another side to every story, and the
spate of FinTech-bank collaborations is proof of that. Why else would FinTech
companies do a U-turn to partner with the same banks they were supposed to
slay? The truth is that while financial startups are doing some things right,
they still have a lot to learn and gain from their traditional banking rivals.
Continue reading "Lessons from Big Brother: Banks can teach FinTech" »
Posted by Abhishek Singh (View Profile | View All Posts) at 12:14 PM
Customers rule the marketplace. To witness this, one only has to look at the various indices that enterprises use to measure the customer experience such as Net Promoter Score (NPS), Customer Satisfaction (CSAT) index, Customer Experience Index (CXI), Customer Effort Score (CES), First Call Resolution (FCR), etc. However, customer experience is a dynamic phenomenon governed by several factors. There is the customer journey, i.e., how a customer moves through multiple stages of a product consumption lifecycle with an enterprise. Different consumers interact with enterprises through various touch-points such as website, mobile app, physical store, call center, social networks, etc. Further, while some consumer trends impact the top line, others impact the bottom line and some impact both. Thus, arresting certain negative trends can be cost prohibitive while driving some positive trends may generate no revenue or profitability.
Continue reading "If you can't measure it, you can't manage it" »
Posted by Puneet Chhahira (View Profile | View All Posts) at 11:14 AM
In an omnichannel banking world, the quality of experience enjoyed by a customer is actually built backstage, where internal processes are hard at work. It is process innovation that ensures that every transaction in every channel is optimized to maximize customer expectations as well as business objectives.
Continue reading "From efficiency to experience" »
Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 6:45 AM
Mobility is no longer a concept whose potential can be defined merely by enumerating handsets shipped, connections created, apps launched or data consumed. It is a phenomenon that is estimated to have generated a total economic value of almost US$ 10 trillion last year, which makes it the third largest economy in the world after the U.S. and China. I should also probably mention the 11 million jobs that it was directly responsible for creating around the globe.So, how has the mobile phenomenon changed banking and other financial service verticals?
Continue reading "Banking in the Mobile Economy" »
Posted by Venkatramana Gosavi (View Profile | View All Posts) at 6:19 AM
As the banking sector evolves towards a 'mobile first' end state, banks need to take a more holistic view of the possibilities of mobile banking. The focus needs to be as much on customer experience and engagement as on converting that into wallet share and profitability.
In a 'mobile first' paradigm, banks have to focus their strategies on mobilizing the entire customer lifecycle rather than on merely enabling transactions. Take account origination for instance. Even as banks endeavor to bring this feature up to scratch and scale in the online universe, customers' expectations have already skipped ahead to mobile devices, which it is estimated will account for up to 12 million checking accounts by 2020. As more and more customers evaluate banks on the basis of mobile capabilities, a simple and streamlined account opening experience that leverages the native capabilities of mobile devices could indeed be the acquisition lever that banks need.
If mobility has the potential to create a convenient and new customer acquisition gateway for banks, they need to follow it through by also mobilizing their sales processes. Mobile apps that have been optimized for sales & marketing, in terms of identifying and leveraging opportunities for up-selling or cross-selling, are still quite rare. This represents a huge opportunity cost for banks considering that cross-selling, together with cost reductions and customer retention, could take mobile banking ROI up to nearly 16 percent. And mobility offers some uniquely native opportunities, like geo-location, to efficiently deliver products that not only fulfill need, but do so in the correct customer context.
The concurrent focus must be on mobilizing financial empowerment. Personal Financial Management (PFM) is also emerging as a key determinant of service provider choice among millennials. There is also an established positive correlation between active mobile banking users, usage of PFM solutions, and profitability. Banks need to deliver PFM solutions & tools that will help customers build an aggregated view of their finances across multiple service providers in order to build a holistic strategy that will help them achieve their goals.
And they must not forget to mobilize their employees. Mobile-first is not a cultural shift that applies exclusively to consumers; it's a broad social trend that is equally relevant to employees. The advantages of BYOD in terms of employee productivity and organization performance have already been documented and enterprise mobile strategies cannot afford to ignore the inherent payoffs of a mobility-empowered workforce. More specifically, real-time access to information and applications can also help field sales personnel achieve higher levels of service and engagement.
Finally, now that it seems fairly certain that the future is going to be 'mobile first', if not 'mobile only', the approach should be to quickly graduate from mobilizing discrete transactional chunks of banking to redefining the entire banking experience around the possibilities of mobile. It would probably help to be aware that a new breed of 'mobile only' startups has already bet all its VC money on that opportunity.
Posted by Jaymalya Palit (View Profile | View All Posts) at 6:29 AM
Does the banking sector really need more regulation than it already has coming? A UK IT trade body is proposing 'enforceable infrastructure standards' after an IT disruption in one of the country's premier banking institutions financially excluded many customers for almost a week.
Continue reading "Building compliance with enterprise-class components" »
Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 6:55 AM
If unhappy customers are indeed the greatest source of learning, then the banking sector
is sitting on a gold mine. Since 2011, the proportion of customers planning to switch banks has risen from 7% to 12%. Only 37 % are satisfied with their banks' understanding of their needs and preferences and only 44% think that products and services are adapted to their needs. A majority is just not thrilled with their banking experience.
Continue reading "Simplify, to give your customers a better experience" »
Posted by Gaurav Gupta (View Profile | View All Posts) at 2:36 PM
That social media has taken the virtual world by storm is a foregone conclusion. What is surprising, though, is the changing attitude of employers towards their employees' preoccupation with it. Once seen as a distraction at the workplace, employers today are increasingly encouraging their employees to network via social media sites - an impressive 55% of US employers, to be precise, going by a recent survey by Regus. Other numbers thrown up by this survey suggest that 47% of businesses in the US are using social media to generate new business and that 38% of businesses spend up to 20% of their marketing budgets on social networking activities. And justifiably so.
Continue reading "Link CRM to Social" »
Posted by Gaurav Gupta (View Profile | View All Posts) at 1:28 PM
Globalization brought in its wake the dictum "customer is king." A couple of decades, slowdowns and recessions later, companies still subscribe to this decree. So much so, that it has spawned an entire business - Customer Relationship Management (CRM)
- in a bid to engage this all-important asset, the customer.
Continue reading "CRM Soars to the Cloud" »
Posted by Ankit Jain (View Profile | View All Posts) at 12:43 PM
The Indian banking sector grew significantly in size, spread and scope of activity over the last three decades. Its story mirrors that of India's growth, which is natural, considering that the influences on GDP also favor banking in all its forms - retail, corporate
Continue reading "Customer Loyalty in Today's Banking" »
Posted by Vivek Sharma (View Profile | View All Posts) at 9:00 AM
For a long time, consumers were quite apathetic about their banking decisions. And who could blame them? Products were standard across institutions, with very few or no variations, and one bank looked like the other. Customers chose their bank based on location, acquaintance with employees, and word-of-mouth reviews.
Continue reading "Social Media, for Customers and their Banks" »
Posted by Medha Mehta (View Profile | View All Posts) at 2:30 PM
At 11 a.m. there was maddening rush in my branch. It was peak summer, temperatures were soaring and customers were frustrated with how long the cashier was taking to single-handedly attend to them. Ironically, there was also a kiosk available for depositing cash, but it was completely ignored by the throng of people who preferred to wait in line so they could hand it over to an official. Unable to take it any longer, I started urging customers to give the machine a try; with a little help and within ten minutes, the lobby was empty of all but three. The lesson? Merely installing an alternative channel won't do the trick.
Continue reading "Channel Banking: Automated yet Human" »
Posted by M.A. Kishen Kumar (View Profile | View All Posts) at 1:45 PM
I know it sounds ludicrous, but there are banks which indeed process several thousand transactions per second! Blink. The counter notched up another 5,000 transactions. Oh wait, that's an additional 20,000 in the time you took to read this sentence.
Welcome to the reality of Big Data, which is growing at a scale
that is almost unreal. Being part of a highly information intensive
business, banking institutions are among Big Data's biggest
stakeholders. So the fact that most banks process the bulk of their Big
Data offline, outside of real time, by which time another million events
have gone by, is most perplexing.
Continue reading "Want More from Big Data? Get Real!" »