Five ways payments will be different in 2024

November 24, 2015
/   Voices

Predicting the future of cash and card payment volumes is arguably a fool’s errand – but Payments UK, Britain’s new trade organisation for the industry, is in a good place to have a go...

Contactless cards: Opt-in or opt-out?

/   Voices

Australia is toying with the idea of creating an opt-in function for contactless cards, in a move that highlights the problems around coping with new payment technology and how fraud risks are handled.

Five EMV lessons for the US

/   Voices

The EMV liability shift has occurred in the US, so what can we expect to see happen in the coming months and years as a result of this change?

Open to Change: The API Factor

It’s a simple acronym—API—but it means so much to every industry. And for banking professionals in particular, it means even more.

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

Digital banks are no longer in the ‘money’ business but rather, in the ‘value’ business. This value is not just providing a functional benefit but also a holistic experience, (i.e. ‘what, when and how’ of the benefit), that customer values in the experience-based economy. Unlike in the past, when more than two products from one bank made a customer loyal, customer behavior is fleeting and their expectations for digital banking is increasing every day, because technology is giving them numerous choices and control. Tech savvy banking customers are not only comparing their digital experience with that of other banks, but also with their digital experiences in the non-banking world, like retail or telecom. This digital experience is vital, as it determines whether they should stay or move to different banks for better service.

Across the globe, adoption of mobility is surpassing the Internet and all other channels in banking. At this juncture, customer experience is primarily decided by speed, anytime-anywhere-any device banking, security and simple intuitive clicks. So, the ‘customer relationship’ itself has undergone a massive disruption along with technology. Digital banking is evolving by fulfilling customer needs and proactively advising before the customer even asks. Here are the various faces of digital banking, which often intersect with each other.

Digital Banking with Human Face:  While branches will continue to shrink, Face-to-Face (F2F) connections will continue. Telebanking via video will give a personal touch for issue resolutions or financial advisory services, to HNW (High Net Worth) and retail customers, while they are at home or the office. Bank of Montreal, for example, after introducing its telepresence, overcame the challenges of telephonic on email banking, and has been able to add a new dimension to superior customer experience.

Digital Banking with Digital Face: There has been a massive behavioral and thus expectation shift in the customer relationship, especially among millennials. For millennials, the F2F relationship is no longer irreplaceable when the customer requires a utility driven solution or a real-time resolution through the digital relationship. Technology is the foundation of digital relationship, without which relationships with millennials would break in the future. Digital customers put a heavy premium on their mobile experience that will be redefined by their seamless, intuitive digital experience. For example, Wells Fargo, has used responsive design, to make its UI (User Interface) fit for different devices, even after their customer moves from one device to a different one. Many banks also allow their customers to pick and choose from multiple apps, so that each customer can use the one(s) most useful to them.

Digital Banking with Social Face: Social media has already emerged as a platform, by which to build new connections and relationships. Surpassing the limitations of being a marketing mechanism, social media is now integrated with call centers to address customer needs and enhance customer relationships. Many customers are ready to invite risk trade-offs and allow their banks to track them. In return, banks are able to meet the customers’ untold expectations through behavioral analysis and offer big-data based, highly personalized products or solutions. In this way hard-selling goes away and digital banking enjoys customer empathy.

Digital Banking with Invisible Face: Behind every cool staff in digital banking, there are strong, robust, behind-the-scene systems that ultimately build trust for the bank. The building blocks are analytics, data security and authentication, without which, the customer experience would be ephemeral. For example, contactless ATM transactions, using multi-factor authentication (like retina scan, video clip or bio metric) for secured and simple transactions, deliver effortless customer experiences. Voice over mobile is another shift from keypad entry in authentication that helps customers to do banking while they are busy in driving or something else.

Digital Banking with Omni Face: In the age of IoT (Internet of Things), where the digital world (20%) is joining the enormous physical world (80%), dividing lines between industries will blur and banks will merge with non-banking world to capture value and offer customer delight. IoT will focus on huge amounts of data, like geo location, click stream etc. to offer contextual real time decisions to digital banking customers. Baking activities like lending or payment will then be embedded into the customers’ lifestyle, affecting how they shop or buy a house, by gathering customer intelligence and close customer engagement.

Suman Kumar Chandra is the Director of Delivery at Virtusa. Suman has worked in multiple areas spanning from delivery of large complex IT and business programs, to managing multiple global accounts, consulting and sharing thought leadership. He was associated with BPM, CRM, DW/BI, Social, Mobility and Testing engagement for his clients. He has worked on multiple process initiatives for systemic improvement. He is a PMP and Certified Process Professional. Suman holds Bachelor degree from Indian Institute of Engineering Science and Technology (IIEST), Shibpur and MBA (Finance & Strategy) from Melbourne Business School, Australia with international exchange from Darden School of Business, USA.


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Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.