The time to rely only on physical banking branches has been over for a long time. Progress of technology such as artificial intelligence (AI) have transformed how the average person interacts with its finances, which allows easy access to digital banking services on their personal apparatus.
NTT Data’s “Intelligent bank in the AI eraThe report revealed that 96% of banks see the thrust of IA integration, with an adoption rate of 58% from 2024, against 45% the previous year. We also see the rise of financial institutions, insurance and their traditional operating models, which can fight to meet customer requirements for flexible and digital experiences.
While centuries of banking traditions are replaced by new remote relationships based on digital technology, the imperative for banks to adapt and innovate has never been so urgent. Traditional banks must reassess their strategies, imitate Fintech characteristics and move on to a digital ecosystem.
A recent white paper, “Embrace the modernization of insurance drives for future readingForced by NTT data, revealed that the first challenge of modernization of the inheritance is internal skills. Organizations must discuss modernization with a clear strategy, meticulous planning and the collaboration of qualified technological partners to ensure successful results and maximize the return on investment.
Advancing to digital ecosystems
NTT Data World Bank Research Report entitled “The digital horizon: the transition from the Banque du Mainframe to the IA cloud infrastructure“, While the majority recognizes the need for digital transformation, 63% of banks still operate on mainframe systems.
Banks today rotate mainframe systems rooted to adopt AI and Cloud technologies, 91% of which reporting that their AI and Cloud initiatives are approved by the Board of Directors, signaling strategic prioritization. In addition, 45% of banks already integrate generative AI technology in their technological batteries, while an additional 30% are at the early stages of the examination.
These statistics point out the change in strategic prioritization in banks. To remain competitive and resilient in today’s landscape, banks must adapt accordingly to the evolution of market dynamics. This involves adopting customer experience (CX) based on cloud -based and data -based (ex). In doing so, banks can navigate effectively in the complexities of an intelligence environment while meeting expectations and regulatory standards of increased customers.
Bank as a product centered on the product
It is over the time when the bank was synonymous with a trip to the local branch. Smartphones used as a main gateway to financial services, we must recognize the need for banks to adopt a product centered approach. By reinventing themselves as creators of complete financial ecosystems, banks can meet the various needs of their customers.
The basic banking services of a bank include a wide range of functions, benches and deposits with changes in exchange, loans, debit or credit cards and ATM services. To kiss the “hollow creates” approach is essential in this transformation. This approach implies that financial institutions are evolving towards new generation financial ecosystems. To better meet customer needs, banks must extend their catalog of products beyond basic banking products and develop an in-depth understanding of their customers.
Bank as a service
Ideally, financial institutions should adopt collaborative models based on services. A banking supplier as a service (BAAS) must take advantage of technologies such as API-STHRA-STR architecture, Cloud Computing, Micro-Services and Kubernetes to facilitate traditional banking services such as payments, savings deposits, loans and customer integration.
In the area of the adoption of cloud and banking modernization, financial institutions should go strategically to the Cloud with the help of third -party solutions suppliers. This collaboration combines the expertise of service providers in the development of solutions with the capacities offered by the main platforms, thus allowing speed, flexibility and innovation.
By integrating technology into banking services, digital transformation is obtained, improving the overall banking experience. Features such as account switching services rationalize transactions, allowing customers to transfer payment services between effortless banks. In addition, the implementation of the bank opened is revolutionizing the provision of financial services, allowing collaboration with third -party ecosystems to comply with regulations such as PSD2 and innovating products and services.
This approach facilitates cross -border transactions and smoother exchange of currencies while taking advantage of APIs to recover and analyze the data. Thanks to digitization and self-service capacities, customer satisfaction is high, improving global banking experiences.
Bank as a lifestyle
Beyond simple transactions, the bank has become an integral part of daily life. Thanks to technological progress, customers can now transparently integrate financial activities into their daily routines. Imagine a world where your refrigerator automatically rests the grocery store according to consumption models, where you can pay your morning coffee with a simple palm sweep or be billed at the trains outlet points.
By considering a future where the bank transcends the provision of services and becomes a lifestyle characterized by convenience, accessibility and inclusiveness, changes must be made slowly but surely in the banking sector. Thanks to initiatives such as digital transformation and payments in real time, banks can allow individuals of all demographic data, ensuring that no one is left in the journey to financial prosperity.
In conclusion, the transformation of the bank into a digital ecosystem focused on the client announces a new era of convenience, accessibility and innovation. While financial institutions adopt approaches focused on product, collaborative service models and transparent integration in daily life, they open up to improved customer experiences and inclusive financial prosperity.
The opinions and opinions expressed in this article are those of the author and do not necessarily reflect those of Cdotends. Image credit: istockphoto /krugli