Produbanco, one of Ecuador’s top banks, has positioned itself as a leader in achieving two equally important goals: digital innovation and sustainability. Focused on both today and tomorrow, this dynamic bank is committed to meeting its customers’ current needs while ensuring that the bank of the future is better than the one of today.
The past year highlighted the growing importance of digital customer experiences in the financial services industry as COVID-19 continued to accelerate the pace of digitization. Unable to connect in person, consumers turned to digital tools. One survey conducted between late March and early May 2020 reported that between 46% and 51% of adults in the United States increased social media use since the start of the pandemic.
Beyond Checking Boxes: A New Approach to Operational Risk Management Will Create Value for Financial Institutions
The COVID-19 pandemic upended almost all industries, including investment banking. Once bustling trading floors quickly transformed into a dispersed network of home offices and new operational risk challenges arose. Technological innovations and an ever-evolving regulatory landscape have made archaic approaches to operational risk management ill-suited to tackle the complexity posed.
If further evidence was needed, the successful £322m fundraising by UK’s Starling Bank is a clear signal that digital-first newcomers will continue to force change in the banking industry, impacting long-established banking brands. To find their way back to the surface of this maelstrom of change, a step-change in traditional banks’ revamping of legacy technologies must be a priority.
2021 is fraught with questions about banking’s future in the strange, perplexing COVID-19 world, but there are key technological trends for industry participants to explore and exploit. Open banking, embedded finance, time and money, personalization, cybersecurity, digital currencies, payments without intermediaries will be principal factors in reshaping banking in Russia and worldwide. Staying in the game will hinge on a bank’s determination to make digital transformation its key strategical goal.
Mr. Simon Hughes of International Banker travels to Belgium to interview Mr. Johan Thijs, Chief Executive Officer, KBC Group, on the bank’s ongoing digital transformation, the innovation that drives that transformation and KBC’s wider role in society.
Bankers are bullish on digital transformation. According to 2018 research by the Boston Consulting Group, 86% of financial institutions agree that digitization will upend the industry and permanently transform the competitive landscape.
In recent years, there has been a significant shift in the relationship between banks and the public cloud. While financial institutions were initially reluctant to embrace the technology, they are now amongst the most likely to do so. According the Culture of Innovation Index, recently published by ACI Worldwide and Ovum
Once upon a time, traditional banks could depend on customer loyalty, no matter what. A bank was the one-stop-shop for all things related to consumer finance. Not anymore. Not now that neobanks and fintechs are competing for the same consumers. Although bank customers are reluctant to move their financial business, banks are being increasingly challenged to address their needs first, which is all working out to their advantage.
Banks are a mixed bag when it comes to utilising technology’s full potential: some are taking full advantage while some are trying, and often struggling, to apply technology to their existing businesses.