#Security and fraud risk remain the top priority for retail #banks seeking to update their #payments infrastructure, a study released this week by ACI WorldWide and Ovum found. The security and privacy of consumer data have remained top concerns for financial service as #technology companies like Facebook and Google come under fire for potential misuse […]
Bank Innovation
#Square made a splash when it announced it would sell #bitcoin in its Cash app, but failed to make much money doing so, it was revealed yesterday. But working with the #cryptocurrency taught the payments company quite a bit #about #blockchain #technology, and how it ends up employing that knowledge may be the true payoff […]
Bank Innovation
RBS #uses data #analytics to develop a Net Promoter Systems — shades of Vernon Hill of Commerce Bank and Metro Bank fame! They seem to have messaging right since customers are accepting their messages on mobiles.
Financial Technology
As part of our guest blog series, Accenture Nordic Banking Practice Lead Satu Pulkkinen explores how banks can take the next step in evolving customer relations.
First came online and mobile banks, with Nordic banks leading the way. The next wave of digital banking? The conversational bank that operates within messaging applications. #Technology that can see and hear us, continuously growing ecosystems around increasingly popular messaging applications, as well as the amazing progress of artificial intelligence (AI), are enabling personalized, fully digital banking assistants that you can #talk to anytime, anyplace.
Technology is an integral part of our daily lives. Increasingly, devices that used to simply respond to our commands and actions can now also hear and see us. We use mobile applications for almost everything, especially instant messaging. Since the beginning of 2015, WhatsApp, Facebook Messenger, Snapchat and WeChat have become the world&8217;s most used social media applications.
Over 60 percent of customers prefer messaging applications over email or phone calls. And we are moving on from using several different mobile applications to services that are integrated within ecosystems of those applications.
The development of artificial intelligence (AI) technologies, like machine learning and deep learning, has progressed at such a pace that the chatbots many Nordic banks use today are already starting to look outdated. As AI technologies continue to mature, bots will become even more human-like.
The increased volume of data and number of analytic tools create the possibility of offering individualized digital services on a mass scale. This has already led us as customers to expect each digital interaction to be as good as our best last experience—regardless of the brand or industry in question.
Conversational banking exploits these technology trends in an intelligent way. Banking bots within messaging applications and virtual assistants (like Apple’s Siri or Google Assistant) connect cost savings brought by the previous generation’s online and mobile banks, with the personal touch previously provided by bank clerks.
What is behind all this progress? Talking is natural for people. Complex language and communication separate humans from other animal species. Stories form the cornerstones of civilizations. Talking is, therefore, genetically encoded in all of us.
In much the same way, messaging applications are natural to current mobile devices. These applications are easy and fun—and effortless to use, even on the move. We can type or speak and we can hold one- or two-way, personal or group conversations.
Therefore, brands have rushed to embrace messaging applications. For example, Facebook Messenger has over 33,000 bots offering customer assistance and counseling as well as providing interactive experiences. And we seem to like them: over 60 percent of consumers use messaging applications to communicate with brands.
For example, in the future, a bank bot could interact like this: “Hi Satu! I noticed that there’s €100 left over in your bank account. Should we put it in a fund that matches your expected return by only investing in environmentally friendly companies?´´
Capital One in the US is one of the first financial institutions to move into conversational banking. It offers its customers an opportunity to check their account balances or pay bills just by talking with Amazon&8217;s Alexa—and without once touching a device. The customer just has to link his or her bank account to an Echo device. Once that’s set up, the bank literally obeys the customer’s voice.
Now it’s time for Nordic banks to move on from online and mobile banking and start talking to customers. Who will be the first?
Satu Pulkkinen, Nordic Banking Practice lead at Accenture
The post Banks: We need to talk appeared first on Accenture Banking Blog.
The leading #banks in the U.S. have a larger share of deposits than before the financial crisis, and they grow big an profitable by avoiding the poor, according to “How the Other #Half Banks”, an excellent overview of the lack of finance facing many Americans.
Financial Technology
The ways businesses, consumers, and even #banks make #payments are changing, as technologies like realtime payments and APIs make it easier to send money across the globe. But one #technology seems curiously absent from recent payment innovation, and that’s #blockchain. “We think blockchain technology will streamline payments, but in practice there are very few open […]
Bank Innovation
EXCLUSIVE – #Technology services provider Synechron launched a #regtech #program focused on helping its financial services clients on regulatory #compliance issues. The program, which Synechron refers to as its Regtech Accelerator Program, went live yesterday. Although it is called an accelerator, the model of the program is based on Synechron’s #blockchain project (also called an […]
Bank Innovation
My colleagues Elena Mazzotti and Francesca Caminitti recently pointed out that #banks collaborating with #fintechs can move more rapidly and more effectively than they could on their own to introduce new products, streamline processes, enhance the customer experience and accelerate growth. It is a good time for banks to re-examine their #technology strategies and explore the investments and #partnerships necessary to get to the next level of digital sophistication.
Indeed, Accenture analysis has found that banks’ revenues at risk from #fintech competition are typically in the range of two to three percent from lower loan origination, lower net income and fewer customers acquired. On the flip side, banks can gain a potential three to five percent in revenues by collaborating with fintechs, through enhanced customer acquisition, more fee-based revenues, better pricing accuracy and lower cost of risk.
Finally, we could take the discussion one step further and question the current #focus on “fintechs”. Client journeys are going outside the scope of the purely financial, and relationships could benefit from partnerships between banks and players in other industries such as real estate, health, and education. The focus on fintechs may ultimately prove to be too narrow for banks seeking to enter underserved new markets.
The post Focus on fintechs? How banks can make the most of fintech partnerships appeared first on Accenture Banking Blog.
#BBVA bank announced today that it has closed a $ 90 million #corporate #loan #deal with their #technology partner, Indra, via #blockchain technology. The bank claimed that the transaction, which would typically take a few days to complete, closed in just a few hours. BBVA used its own internal blockchain system, which is built on the IBM-backed […]
Bank Innovation
#Saxo offers access to global capital markets through a platform that investors and investment managers can access through an API.
Financial Technology
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