EXCLUSIVE—Is the end of #credit, #debit #cards drawing near? Financial service firm #Fiserv #says, no. “Physical cards, they’re not going anywhere,” Sharon Pazlar, director of output solutions for Fiserv told Bank Innovation. “As much as mobile has bloomed, especially with the efficiency of mobile and online banking, the #banks have to facilitate payment with whatever […]
Bank Innovation
#Ripple is attracting attention from some #banks, and hiring some staff from SWIFT.
Financial Technology
EXCLUSIVE— Consulting and #technology services provider #Synechron announced today that it has teamed up with #blockchain consortium R3 to create a solution using distributed ledger technology (DLT) for digital identities for customers of corporate #banks. The #project is named LEIA 2 and includes 12 banks across four continents. The solution will be built using Corda, […]
Bank Innovation
#Banks like JP Morgan Chase, Bank of America Merrill Lynch, and Wells Fargo are announcing new #mobile features and adding new mobile users every day, but mobile can be a challenge for #smaller banks that don’t have the resources of a Wells or Chase. “It’s almost impossible for us to stay anywhere near-competitive,” Kevin Karrels, […]
Bank Innovation
#Ripple is attracting attention from some #banks, and hiring some staff from SWIFT.
Financial Technology
Winnie-the-Pooh isn’t normally considered a business guru, but it turns out that A.A. Milne had a pretty good grasp on the challenge of digital transformation. “How does one #become a butterfly?’ Pooh asked Piglet in one of the stories. ‘You must #want to fly so much that you are willing to give up being a caterpillar,&8217; Piglet replied. &8216;You mean to die?&8217; asked Pooh. &8216;Yes and no,&8217; Piglet answered. &8216;What looks like you will die, but what&8217;s really you will live on.”
Leaders at many retail and commercial #banks are having similar conversations as they figure out how to win in a digital economy that is beginning to make their old business models look somewhat caterpillar-like. The big banks that succeed in the decade to come will be those willing to transform themselves by shedding the old versions of themselves in favour of something quite different.
The first step for many is to become outstanding Digital Relationship Managers, coupling their traditional strengths with a modern, open model approach to serve a wide range of customer needs and segments. It means having organisational agility and vibrancy that can quickly capitalise on the continuous and personalised stream of data generated by the digitisation of everything to satisfy the customer’s ongoing needs—both financial and non-financial.
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The next step forward for these banks is to think of themselves as a #Living Business in ways that challenge traditional industry boundaries. That transition is about being hyper-relevant and embedding vitality across the organisation to adapt to changing customer needs and behaviour, beyond banking. It’s a transition that is not evolutionary but revolutionary. A bank that is a Living Business is not a better caterpillar, but more akin to a financial services butterfly. To take flight, banks will need to draw on ecosystem partnerships and plug-and-play functionality for all products and services, to refresh services and reinvent business models as fast and as often as needed. “Run the business” will essentially be automatic, while most talent and investment will be aligned against “change the business” activities. Many transactions will come through digital natives, such as Google, Facebook or equivalent multi-use digital platforms. Some transactions will be text-based, but a huge portion of interactions will be voice-based. From within that digital conversation, banks will need to identify the opportunities for a smaller number of higher-value transactions where it seamlessly provides more complex services, such as financial advice to its customers.
While the potential to grow revenue streams that come with Banking as a Living Business are enticing, banks will also have to embrace the more daunting aspects, such as prioritising their customer-oriented initiatives and cutting the caterpillar-improvement programs that do not map to the bank’s future business model.
Must banking as we know it die? Yes and no. Traditional concepts of the bank will die as banking moves from something customers step outside their regular activities to do and to a business that is fully integrated and embedded with the rest of their daily lives.
I join my colleagues at Accenture, Allen International, and Fjord to share further details in our new report, Banking As A Living Business: Driving Hyper-Relevance And Vitality Beyond Industry Boundaries. I invite you to read it as you contemplate what’s ahead for the banking industry.
The post What banks will want to become: a living business appeared first on Accenture Banking Blog.
Five themes are driving change in payments today. Individually they have a significant impact on the way we pay. Combined, these effects are amplified, creating a powerful force on the payments landscape, which, if you like, we can call Payments^5.
Firstly, #banks across Europe are preparing for PSD2 inJanuary 2018, much of it focused on building open API capability. Our advice to clients is to launch with minimum viable API products based on the data they have and what they know the regulation requires. As the payments API economy grows in 2018, these APIs can be rebuilt quickly, and often, to meet market demand and opportunity.
Secondly, the new PSD2 requirements for strong authentication will impact every customer payment interaction. Banks and other PSPs are caught between the regulators focused on fraud prevention and merchants focused on seamless shopping. The answer is biometrics, in particular, behavioural biometrics which allow strong, continuous, invisible authentication.
Thirdly, instant payments are coming to Europe, with most CSMs investing in real-time capabilities. However, banks face a dilemma—they struggle to find a compelling business case based on hard numbers, but intuitively they know instant payments are essential in a digital economy, and they can see the successes in the UK, Sweden and Denmark. To progress, communities of banks need to move together, focusing on the substitution of internet and mobile banking payments to instant.
Fourthly, robotics can provide fast ROI to automate away repetitive manual tasks in bank payment processes, reducing costs and improving STP and customer service, while AI can tackle more complex tasks such as AML screening.
Lastly, cloud is coming to banking and to payments. Cloud is ideally suited to payments processing with its peaks and troughs of transaction flows, with the move to open APIs and with the proliferating ways to pay, 24×7. Cloud is the cornerstone #technology for ubiquitous payments, anytime, anywhere, from any device.
This is Payments^5. It is pointing towards a new world of Open Banking, a world in which consumers do their banking outside the banking environment, for example on merchant apps. Living Services—on demand, immediate, digital services mashed together from multiple service providers—will now include payments and other banking services, delivered through open APIs. A Cambrian explosion of APIs will develop, leading to API consolidators and aggregators, and to new businesses and new business models. Life as we know it in banking and payments is changing—for ever.
The post Payments^5 appeared first on Accenture Banking Blog.
A brand new chapter of the bank transformation that has been going on for years is here, and it’s about #virtual #branches. Standard Chartered recently performed the #biggest launch in history , with 9 countries and 5 million customers, and the new launch of global bank is expected to reach customers across 16 countries. But what […]
Bank Innovation
#Square is #competing with friends and family, not financial institutions, to grow its lending arm, Square #Capital. The payments processing startup #grew loans at Square Capital by 68% year-over-year this quarter, according to CEO Jack Dorsey on the company’s earnings call yesterday. This figure represents $ 318 million in loans to almost 50,000 sellers on the […]
Bank Innovation
#Banks are paying attention to digital tokens along with the rest of the financial world, but some tokens might be more important to banks than others. But coins and forks rule the news these days. With the recent arrival of new #cryptocurrency #Bitcoin #Cash, which has split off from the bitcoin #blockchain and is currently […]
Bank Innovation
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