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Top 4 Tech Topics to Banking Transformation

February 8, 2020

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Organizations with a deliberate and structured approach to managing the intersection of data, analytics, ML, and AI will be the ones moving business forward. Learn which four topics to target for your approach to banking transformation.

Analytically Driven Change Puts Legacy Systems to Pasture

A new decade is upon us and with it a new set of expectations about how to change and mold the banking industry by leveraging innovations in technology. As with every new year, business leaders rally around the call of game-changing advances that can re-write the rules of business. With growing customer expectations, simply having digital is not enough.

Analytically driven digital transformation needs to be at the forefront of 2020 strategies while leaving legacy banking in the rear-view mirror.

As Adam Dell, Goldman Sachs Head of Product at Marcus has commented, “There are two kinds of incumbent banks, there are banks that are screwed, and there are banks that don’t know they’re screwed.”

Data Analytics and the Umbrella of Decision Sciences Dominate the Narrative

Promising everything from tailored customer treatments to radical change in operational efficiency saves, leaders are investing heavily on things like ML and AI (Machine Learning and Artificial Intelligence).

Organizations that take a more deliberate and structured approach to success at the intersection of data, analytics. ML and AI will be the ones moving their business forward, while those using a less targeted approach will likely stall, resulting in high costs and low value.

Laser-Focused Activities Bring Innovative Results

Organizations will need to design small, laser-focused activities related to decision sciences and digital enablement. Connecting the needs of the customer with business strategists, data scientists, IT teams, and other lines of business will provide long term innovative results rather than continuing to add Band-Aids to decades worth of “quick hit” legacy fixes.

The goal is to create a single story from end-to-end, execute on just that story, and expand the capabilities from there.

Where to Focus Your Efforts

As financial institutions evaluate their technological capabilities and investments, the following will be important topics:

1. Digital Strategy

    • All financial institutions MUST have digital strategies as a top priority in 2020 but the key is to not miss the mark with delivering only short-term solutions, think long term
      • Example: FIs must have an analytically informed outbound omnichannel that has the digital capability to support the servicing and recovery business. These capabilities, like wealth and savings recommendations, information confirmation, and product opportunities, would be supported by Cloud, open banking, and automation solutions.

2. Decision Sciences

    • Data, Data, Data – FIs sit on limitless customer data but banks struggle to harness the right information efficiently and in meaningful ways
      • Example: Institutions can leverage all customer relationship contact information, including contact reason, channel, day, and time, to build best time to contact models based on contact purpose and desired business outcome.

3. Automation and Orchestration

    • Banks need to leverage the technology that exists today to remain competitive in the ever-changing modern landscape. Identifying ways to implement AI and ML can assist FIs ability to innovate and deliver efficiently and effectively
      • Example: AI assisted chatbots and enterprise decision engine advancements augment or autonomously handle many interactions today. Added innovation in live voice NLP and systemic process orchestration are enhancing and enforcing standardized treatments in servicing and collections.

4. Customer Digital Experience

    • Growing customer expectations and primary banking through mobile devices have driven digital transformation to the forefront of modern banking, exposing legacy traditions and technologies. Banks must deliver the best products and services to customers who expect this at the snap of their finger, all while on their smartphones in one seamless location
      • Example: Customers want to increased flexibility when accessing and using funds. Extending consumer app functionality that can provide immediate access to term loans at a POS as an alternative to an existing revolving loan can grow relationship value and enhance customer experience.

Bridgeforce can help you focus on the right digital activities, analyze your technology capabilities and help steer you toward the right investments. We’ve done it before and have been helping clients with their technological transformations for 20 years.

To get started on your targeted approach to digital, contact our team.

 

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