Getting regulatory compliance right is a necessity for financial institutions today, because getting it wrong is a punishingly expensive mistake. Just as fintech has been rapidly embraced by the industry due to its many proven benefits, the new kid on the technology block, regtech, is set to blaze its own innovation trail, disrupting the old ways of doing things in a bid to cut costs.
Customers of financial institutions expect all of the latest digital innovations to be integrated into the products and services offered to them, but these enhancements can introduce new and more dangerous cyber threats to the sanctity of their personal data. Never before has combining effective cybersecurity, ever ready to confront today’s emerging risks, with rapidly changing technological improvements been more critical.
App developers are shooting ahead like missiles, struggling to outdo each other in the creativity department, and customers are loving them for it. But are banks keeping up, or have they been left out of the digital party, still struggling with outdated systems that simply “don’t do” technology all that well? 2017, characterized by the unexpected, is separating the serious contenders from the rest.
Change has become the key word for European Union banks, and the European Commission’s Revised Payment Services Directive, set to come into effect next January, promises to level the playing field for banks and fintechs as well as uphold consumer rights, while also possibly changing the face of traditional European banking beyond recognition. How are banks coping with the challenges and demands of the PSD2?
If you had asked me 10 – even five – years ago if I could imagine the day would come when I could quite easily open up a bank account online, I probably would have just laughed it off.
There’s no doubt that first impressions matter—that’s why those initial contacts potential customers have with banks can mean either a long-term, happy marriage or a quick divorce. Banks have a lot to lose in getting their onboarding processes wrong, and a lot to gain in getting them right;
Leading has always been demanding of one’s personal skills and knowledge, but the world of digital has upped the ante even more for banking executives. Digital stewardship, decentralised decision-making and followership are three practical approaches toward developing digital leadership, crucial for financial institutions that are shepherding their staff and clients through the unknown and continuously evolving digital journey.
In the midst of the political and economic turmoil that has plagued Brazil in recent times, there is one financial sector that appears to have particularly strong credentials for buoyant growth over the coming years.
Millennial and Gen X bank customers seem to be relatively independent, adept at employing online and mobile apps to complete their financial transactions. However, research shows that these digitally confident customers still value personalised advice, especially regarding investment decisions—and retail banks are in the best position to meet that need through immediate, tailored solutions developed using available customer data.
Regulators are tasked with the responsibility of protecting financial assets, a challenge that is becoming more complicated as the ICT/fintech revolution transforms the financial sector and introduces new dynamics. Meanwhile, banks must entrepreneurially reinvent themselves in order to stay competitive in their own ballgame, a goal that is achievable as long as regulators are made to feel comfortable through sufficient capitalization in the industry. And regulators should not be swamped in details but need a helicopter view, and this questions current regulatory practice.