Digital transformation continues to shake-up the financial services industry as new technology and innovations reveal opportunities for customers and businesses.
Technological change in the financial sector isn’t limited to the bank apps and online banking that have contributed to the closure of almost 3000 bricks-and-mortar branches since 2015.
Facing new rivals as a result of digital transformation
Banking institutions are facing new rivals as a result of digital disruption. The likes of Amazon and Facebook – who already hold so much information on each of us – are entering into financial services. Amazon is working on an account with JP Morgan, while people can make peer-to-peer payments on Facebook.
Then there is the rise of crowdfunding, where people with business ideas or artistic projects kick-start them online, backed by hundreds or thousands of small investors.
Artificial intelligence is also ripe for exploitation. A chatbot that helps a customer through a website to the services they need is just one of its capabilities. AI can also assist in setting up new accounts for frictionless onboarding, speed up inter-bank trades, model markets, optimise sales and manage assets. And it offers the opportunity to ease the compliance burden around Know Your Customer and Anti-Money Laundering responsibilities.
It's against this background of upheaval and revolution in financial services that Momenta has been investigating how people and technology can work together to benefit clients and make processes more efficient. For example, on one project we provided people and technology for a project to detect fraud on fuel cards.
Employee experience is also important
And while much of the focus of the digital transformation has been on improving the customer experience, the employee experience must not be forgotten. The change requires internal rewiring, as work becomes more collaborative and decision-making more distributed.
With the rapid pace of technological change, it’s important that the financial services industry is nimble enough to react quickly and fluidly to take advantage.
While Bitcoin and its rival cryptocurrencies provide an alternative secure means of making payment, facilitating trades that banks were at the centre of until blockchain’s arrival, other opportunities are opened up by advances elsewhere.
Consider also how big data is being used by financial institutions. Each transaction a customer makes generates data. Mining that data allows banks to identify trends, to segment their client base, and to target the appropriate people with new, relevant products based on what people want or need.
Legacy operations can’t be forgotten in this digital transformation. In fact, they should be at the centre of it, with the switch from online to offline service or vice versa being made as seamless as possible.
The service offered has to be united, consistent and complimentary, with shared data and improved analysis improving the experience for customers while boosting the profitability of the company.
And no matter what comes next, you can guarantee that human involvement will be needed side by side with technology, or even in place of it, which is where Momenta's approachability and expertise come into their own.