Banks were early adopters of digital advances, but being frontrunners in financial technology has created unique challenges for banks, especially as agile fintechs flood the field, equipped with innovation without legacy infrastructure. Will banks be consigned to the backfield, or can they exploit their enviable assets to best advantage?
As the sophistication of artificial intelligence and intelligent algorithm technologies has increased, they now have the potential to revolutionize traditional banking models and deliver a shift to digital banking which is faster, more agile, and more customer centric. AI has the potential to transform all aspects of banking – from the way we save to the way we invest and spend – making possible a model of banking that is smarter, faster and more customer friendly.
Who could have predicted that a health crisis would result in a banking metamorphosis, with banks adopting the digital-platform model as consumers embrace digital self-service channels? Banks need to follow a series of steps to stay ahead on the journey to an agile, data-driven future, providing services embedded in their customers’ lives.
Bank clients have embraced online channels to complete routine transactions, but this doesn’t mean they no longer seek human contact. When the time comes to cope with complex financial matters, individuals and small businesses alike often want a human financial partner. How can banks best meet this demand for blended customer service?
The pandemic has stressed the importance of digitization in banking. Zambia National Commercial Bank had established a firm digital foundation before 2020 and has continued to build on it throughout the crisis, growing its customer outreach, increasing its profits and confirming its position as Zambia’s undisputed digital financial leader.
No economy can boom without a healthy mix of SMEs, but they are often left to fend for themselves when it comes to funding in times of crisis. SMEs have suffered outsized impact from COVID-19 but have not received corresponding loan consideration from big banks. How can this be turned around so that SMEs will not just survive but thrive?
Our everyday lives are now embedded with personalised products, services and experiences. Whether it is what appears on our social media feeds, the new series Netflix suggests to us, clothing suppliers which will curate a new wardrobe selection, or supermarkets providing offers based on your previous purchases; personalisation now reaches almost every sector.
If bank branches seem emptier these days, it is because a majority of staff are working from home, heeding COVID-19 restrictions. And most of them prefer the WFH arrangement. Banks have had to implement a number of operational changes to accommodate the WFH model, balancing employee health with productivity and accountability concerns.
It’s no secret that SMEs play a significant role in the UK economy. As of 2020, there are 5.9 million SMEs in the UK, contributing about 50% of its GDP. It goes without saying that the pandemic has put SMEs in a precarious position. Empowering them to grow again will be vital to the UK’s recovery – they hold the key to our GDP, the job market and to their communities.
Colombia’s digital-banking maverick, Banco Davivienda, has strengthened its position through fully exploiting its app DaviPlata to meet the challenges imposed by the pandemic. By simplifying processes such as completing retail purchases to receiving government funds, DaviPlata has succeeded in financially including much of the population.