For the rest of the world, the future is now; for retail banks and other financial institutions, not so much. While holistic providers like Amazon and Apple continue to streamline and facilitate the way modern-day consumers manage their money, a bewildering number of banks lag dangerously behind.
No wonder their interest rates are so low when the framework for modern banking remains half-done.
In order to beat the competition (Apple Pay Cash, anyone?), retain their customer base, and grow further, retail banks and financial institutions must build flexible bank software architectures, and team up with fintech to drive innovation. Its due time for IT mobility, CXs, and contextualized analytics.
Here’s an overview of essential solutions for banking and retail equipment.
Appealing to the Modern-Day Consumer
We leave in the Age of Consumer, aptly named so that all industries can be on the same page. Its main characteristics are 24/7 availability, reduction of consumer effort, and fulfilling B2C experiences. Banks make no exception, as their customers expect them to provide frictionless service by embracing tech.
But, relying on multiple stand-alone solutions to optimize bank process management is no longer enough. If they are to achieve overall customer success, banks must learn to structure their back-office operations in a way that ensures flawless customer experiences. Integrated IT solutions hold the key.
When it comes to organizational infrastructure, this implies comprehensive toolkits that include everything from bank budgeting software to bank workflow software solutions. In the context or the new-age open banking trend and customer success, bank CRM software tools are the bare minimum.
The Automation That Equips for Success
Though robotic process automation is already being hailed throughout the business world, the banking sector remains reluctant to this digital change. And, to what expense – be it robotic or not, automation is nowhere more beneficial than in this sector, where everything relies on utter accuracy.
If there’s something that software systems can beat us in, it’s crunching numbers. The mathematical precision that the entire banking industry depends on can never be as absolute without computers. Human beings are prone to errors, and financial errors can damage bankers to the point of no return.
Besides, the internal infrastructures of successful banks don’t differ much from internal infrastructures of successful businesses from other industries. Separate departments must work in perfect unison in order to achieve a common goal, and that’s very hard to do without some help from automation tools.
Mobility in Digital Banking and Beyond
Instead of branching out physically, savvy bankers are choosing a multi-channel approach. Operating costs of digital platforms, web-based self-service centers, and conversational interfaces are much lower than the costs of running brick-and-mortar banks, which have been rendered obsolete by new tech.
Take smartphones, for instance. Millennial crowds don’t bother with financial institutions if they can’t approach them via mobile apps. In the wake of new cashless payment systems, credit cards have been replaced with digital wallets. The digital age compels banks to migrate to the cloud and employ APIs.
Needless to say, this calls for swift e-bank software applications that serve as both centralized repositories of data and centralized management dashboards. And, since 24/7 availability and ease-of-use are prerequisites for any kind of growth, tools for real-time customer support are just as crucial.
Fulfilling CXs Ensure Competitive Edge
Still, 24/7 availability and ease-of-use are just a “table stakes” experience. It’s how modern-day banks defy looming extinction in a tech-resistant industry that’s being disrupted by a customer-driven financial institution. In the Age of Consumers, fulfilling customer experiences are the only key to certain success.
Along with mobility, this new-fangled CX standard requires reduction of consumer effort on all touch points. Its end-goals are frictionless C2B digital banking, C2C one-click transactions, insertion of cryptocurrencies, passwordless payments, and banking chatbots. In other words, all-inclusive banking.
While its scope is holistic, its focus is locked on personalization. Thanks to bank CRM software tools and integrated IT solutions, banks are now given a deeper insight into their consumers, which allows them not only to effectively cross-sell but also to delight their customers with custom-tailored service.
Contextualized Analytics and Big Data
Speaking of personalization, many financial organizations are employing AI solutions in order to collect, store, and make sense of massive chunks of data. If not for optimal workflow and top-notch management, banks are advised to implement financial technology for its robust analytical features.
Together with bank audit software systems, which serve to assist banks in matters of budgeting, management, and responsible reporting, contextualized analytics help financial institutions to stay on top of the market, thus driving both real-time problem solving and better long-term decision making.
Apart from that, AI-based bank software systems support sentiment analysis as well, combining it with a CRM-enabled 360-degree view of the customer. These capabilities ensure a thorough understanding of modern-day financial services and are of invaluable help in the context of competitive CXs.
Security in the Age of Open Banking
As much as integrated IT solutions and all-inclusive bank software systems are the future of both brick-and-mortar and digital banking, migration to the cloud and API-enabled open banking system pose a great data security challenge. And, when financial services are in question, security must be a priority.
That’s why all cutting-edge bank software solutions come with enterprise-grade data protection measures. Security-wise, cloud-based systems have come a long way since their early days, while bank compliance software tools bring the best practices for following the latest GDPR updates in Europe.
In terms of customer experiences, security can be increased with passwordless biometric authentication that verifies customers’ identity without compromising expected convenience. The Internet of Things seems like a solid solution to this problem and is already being deployed as such.
Unlike banks themselves, banking software development has luckily reached new technological heights. Industry-specific solutions like BPMs, CRMs, and RPAs are already at their disposal, awaiting some new and innovative use cases. The scope remains holistic, so opt for integrated fintech solutions.