Digitalization — Banks Transform to Outperform
Digitalization is sweeping the world and transforming traditional banks into digital banks that are expected to quickly launch contemporary financial products designed to leverage modern, consumer data captured via smart terminals and social media.
- Data-driven Development: Analysis from internal and external sources allows digital banks to grasp industry trends, identify customer pain points, and seize new business opportunities..
- Agile Response: In the Internet era, financial products are especially vulnerable to imitation and replication. Banks must deliver new products that 1) meet access security and data integrity standards, and 2) meet tightly budgeted R&D and go-to-market deadlines.
- Access to Services Anytime, Anywhere: Supporting existing customers always costs far less than acquiring new customers; therefore, the most effective means for banks to maintain loyalty is to improve the customer experience for current products and services.
In the next era of banking, customers will live in hyper-connected information communities in which the data networks will grow more sophisticated and valuable for the foreseeable future.
- High-Performance Processing: Banks accumulate more high-value data than any other sector. To maintain this lead, and the profits that come with it, their IT platforms must support the capture and processing of Big Data to find and track rules and trends, respond to customer requirements, seize market opportunities, optimize operations, and transform from experience-dependent to data-driven institutions.
- Open Infrastructures Reduce Costs: Distributed and high availability technologies address various resource inventory issues in cloud computing. As is occurring generally across all verticals, IT architectures for banking are evolving from closed and centralized to open, software-defined systems running on general purpose hardware. By design, open source technologies incur minimum costs relative to the high cost to build and operate a ‘traditional’ mainframe cluster.
- Mobility and Multimedia for Omni-Channel Financial Services: Digital banks are compelled to present online solutions to their customers to reduce the inefficiencies of operating physical branches. In the era of software-defined everything, the only available development option is to build easy-to-navigate UX/UI for both internal business systems and customer-facing applications that are accessed over smart phones.