The digital customer experience has become a key differentiator for banks, particularly for big players seeking to stay relevant against their nimbler counterparts. This has become even more important during COVID-19, when institutions have been expected to provide clear and transparent services to support and protect customers as they navigate the pandemic’s many challenges.
One asset that financial institutions do not lack is data. They are keepers of massive volumes of customer data. But storing and managing data has not provided them with all of its potential value; banks are increasingly enhancing management with analytics to gain maximum advantage from data. Better cost optimization, greater regulatory compliance, improved user enablement and informed decision-making are only a few of the benefits of this coordinated approach.
While banks are easy targets to blame, the recent leaks of suspicious-activity reports—revealed by BuzzFeed News in September—instead confirmed that they are fulfilling their roles in the fight against international money laundering. Rather, it is the whole system that is on the verge of collapse and needs to be rethought.
It’s a fact. The exponential growth of data directly impacts financial institutions’ ability to do business efficiently. And there’s no sign of that growth slowing down, with IDC conservatively predicting a 26% CAGR data growth in financial services companies between 2018-2025.
Do you remember when banking meant wasting time queueing in-branch, or poring over paper statements? Thankfully, the industry has come a long way since then. Today, managing your finances is as easy as logging in to an app; and opening an account is as simple as verifying your identity with a selfie.
Vetting and validating new technology vendors often falls to bankers and marketers who may lack the technical expertise needed to thoroughly understand the presented technology, including whether it will provide the best solution for the bank’s specific needs. It’s easy to overlook red flags and grasp at what might seem like a simple solution.