My top four proactive, disruptive banking process innovations
Speed to market is critical. But when departments within your organisation are competing for dollars and attention, how do you determine which strategic initiatives to support?
Identify areas where you can make the biggest impact both quickly and in the long run.
Here are four I like:
- Embrace the API economy
New regulations and compliance initiatives around the globe make the future very clear: open banking is coming, and open APIs offer more flexible, integrated connectivity solutions. It is quite likely that the future bank who only packages and offers their own products and services will see a drop-off in consumer loyalty.
Offering consumers a “banking platform” that leverages apps and augments traditional offerings with partner products, tools and services will result in ongoing relevancy, mindshare and wallet-share.
- Aim higher with software capabilities
Rather than viewing fintech start-ups as competitors, fintech collaboration can exponentially hasten the implementation of new software solutions. There are several key areas banks should focus on that may not be in their wheelhouse, including artificial intelligence (AI), biometrics and digital identity.
In these specialised areas, lean, fast fintechs can provide the expertise to help traditional banks incorporate new innovations much more quickly. The key is providing the right integration approach to make it easier to work with fintechs and to add capabilities.
- Get underneath data analytics
Financial institutions amass compelling quantities of data every day, yet few know how to make even the most basic of inferences to positively influence their business or their consumers’ journeys. Frankly, banking-originated data and what could be “known” about a consumer far exceeds what Amazon, Google and Apple can do.
It’s time to act. Some of your competitors are using AI already – are you? AI can help FIs make sense of the massive amounts of data they’re sitting on, to drive enhanced, targeted and customised consumer experiences. It can also help digitise internal processes, identify and reduce cyber fraud and even reduce false positives in watch-list checks.
- Harness “as a service” to scale internal bandwidth
Capacity release (whether that is FTE, investment dollars, capital expenditure etc) is the key to reallocating precious resources for larger transformational projects. Using “as a service” outside support can help financial institutions disrupt their internal processes: with operational cost savings, those funds can be spent on new products and opportunities. In today’s increasingly complex financial environment, there is a broad spectrum of XaaS support that could transform your organisation, from ATM-as-a-Service to Cash-as-a-Service and Cloud-based SaaS.
To drive change and make an impact quickly, partner, partner, partner. When and where they fit your roadmap, strategic, thoughtful partnerships can make all the difference.
By Scott Anderson, director, retail transformation and business solutions, Diebold Nixdorf
Learn more at DieboldNixdorf.com/ChangeNow