IBS Journal February 2017


39


Myth #4: Banks need to compete with FinTechs


FinTechs are eager to take a larger share of the banking industry. They don’t have the traditional strengths of physical presence and massive capital base that large banks enjoy, but they do appeal to Millennials and high net worth individuals as these groups want fast access to services and are accustomed to smartphones. With limited technology budgets and sluggish bureaucratic processes, banks typically are not breeding grounds for innovation. They can partner, incubate and collaborate with FinTechs which often require regulatory licence and a healthy balance sheet to fully exploit their technology’s potential.


Myth #5: Analytics for reporting & KYC Key to digital banking implementation is knowing your


customer, not just from a regulatory KYC perspective but importantly their behaviour, preferences and lifestyle. An important and complex element is identifying which customers are going to spend the most money over the longest period and what products most suit their needs. This is the kind of insight that lets companies optimise their marketing efforts to target the most valuable segments. Giving a personalised engagement experience is key to the success of digital banking. This can only be built on a better understanding of customers. Predictive and cognitive analytics techniques open several avenues and tools that banks can use to gain better insights into consumers and their prospects.


Ultimately, successful execution of a digital banking project not only includes technology, but also mindset, culture, paradigm shift and, most importantly, a strong leadership vision.


“DIGITAL BANKING IS A CONFLUENCE OF CHANNEL, SEGMENT, PRODUCT, PROCESS AND TECHNOLOGY”


www.ibsintelligence.com


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