Disruption in Financial Services

Disruption in Financial Services

09/27/2016

The financial services industry is ripe for digital disruption: investments in global FinTech (financial technology) companies grew from $4Bn in 2013 to nearly $20Bn in 2015(1), over 50% of banks are increasing their technology spend for digital banking in 2016(2), and 75% of C-suite insurance executives expect major transformation in the insurance value chain in the next five years(3). Mobile banking in particular, will be a key initiative in the years ahead as banks look to improve their competitive position, differentiate themselves through excellent customer service, and realize higher up-sell and cross-sell revenues through a true omnichannel customer experience. 

The Challenges for Mobile Banking 

Despite the interest in applying disruptive, transformative technology, there are many challenges that banks face when it comes to adoption of mobile services. Excessive complexity due to the sheer size of the operations, high number of legacy systems, and regulatory compliance are often responsible. Banks are investing huge amounts on digital technology, with larger banks alone adding thousands of employees in recent years to make digital banking a reality. Governance is therefore another major challenge – how are banks able to control what all the various business groups develop and ensure that what they communicate to customers is internally aligned and compliant with external regulations? And, how is this achieved in a cost-effective and timely manner?

Cost-Effective Customer Communications

The latest developments in Customer Communications Management (CCM) help the financial services industry build modern, agile, and cost-effective mobile communications platforms that are part of a seamless, omnichannel experience. Taking a platform approach to customer communications is mandatory for the future. It simply does not make sense to use outdated communications technology when the rest of the business process has already been entirely digitized and transformed.

1Source: Accenture, KPMG

2Source: American Banker

3Source: Accenture 

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