With all of the new developments in banking these days, it’s easy to lose touch with what really matters: the customer experience. To enhance their customers’ journeys and earn their loyalty, research shows that bank staff need to develop effective communication channels, listen and then learn what matters most to customers. What’s important to them may not be precisely what bank employees expect.
Vietnam’s banking sector has needed a reboot for some time. Impacted by bad debt, corruption and lax regulation, banks have not reached their potential. In response to the multiple problems, Vietnam is implementing a development strategy to strengthen the sector. The pressure is on banks to comply with new regulations, such as adhering to Basel II capital standards, but banks along with rating agencies generally have an upbeat view of Vietnam banking’s future.
I recently spoke my mind on the challenges that women face in the banking sector. Just the day after, Anne Boden, founder of the UK’s Starling Bank, did the same. Our comments hit the headlines. We’d clearly struck a nerve.
The United States will soon break a record: the longest period of economic expansion, last set in the 1990s. But some don’t see this growth continuing much longer; they expect a recession, or even a depression, to extinguish the growth trajectory the world’s largest economy has been following for nearly a decade. Are these fears justified? Or are there as many reasons to expect the economy to continue to soar, shattering all records?
Traditional banking hasn’t worked well in some areas of the world, including sub-Saharan Africa, where a large percentage of the population has been financially underserviced. New, innovative fintechs have been only too happy and qualified to fill the void. By expanding access, fintechs are promoting economic and social growth in the region, especially in high-tech hubs South Africa and Kenya, which are setting an example for others to follow.
Data lineage is becoming more important for financial services organisations today. Increasingly, it is becoming hard-wired in regulations and in data quality frameworks like the European Central Bank’s (ECB) Targeted Review of Internal Models (TRIM) – and ultimately this is all related to the need for ‘explainability’.
Banks once were the movers and shakers of the financial world, but in the aftermath of the global financial crisis, mired in new regulations, many have lagged behind rising fintechs in technological innovation. What fintechs have discovered is artificial intelligence’s considerable contribution to meeting customer needs and maximizing operational efficiencies. Now that the regulatory climate has eased, banks are catching up and employing carefully implemented AI to help them achieve their customer-centric goals.
The wealth-management industry is in the midst of some seismic changes at present. The traditional channels through which money has been managed and advice dispensed are now being decisively disrupted. And as a result, those who are being affected the most—from multi-billion-dollar hedge funds to retail investors managing their own portfolios—are now operating in an almost entirely new landscape.