GDPR and PSD2 are all set to transform the banking industry by empowering the customer with multi-dimensional power over their personal data in 2018. The future of banks and their success is to reply to the regulatory and technological disruptions through a strategy aimed at value-added relationships with fintech enterprises, e-commerce platforms, and companies like Amazon, Google, Facebook and more. This will ensure they still get multivariate data for their systems to carry out their functions while they offer their clientele a more holistic improved experience.
Changes in the banking industry:
The regulations will see the launching of the competitive forces of AISP (Account Information Service Provider) and PISP (Payment Initiation Service Providers). The PISP merchants will facilitate customers who choose third-party providers like GooglePay or Facebook for their transactions who will get access to customers’ bank accounts. The AISP like Mint in the US aims to provide clients with more than one bank account an integrated view and improve the user experience.
When slowly adopted banks will get the time to ramp up their infrastructure solutions while still using their legacy systems with a product and service-oriented Retail Banking course. However, slow adoption rates by customers and this being a field requiring a good customer experience coupled with the latest expertise and skills banks may not be able to harness the true potential of the opportunity unlike the fintech or e-commerce large platforms.
With Fast Adoption tech companies like Facebook, Amazon, Google and more can get access and provide for substantial sustainability in customer experience and the technological solutions driving it. Banks should then wisely collaborate with their efforts to stay in the business.
The opportunities for banks:
Banks to stay competitive and ahead of the game, need a thorough assessment of their current operational models, and need to embrace technology through a retail banking course of products while building their skills particularly for customer journeys that is king at the moment. While the process of implementing GDRP and PSD2 may appear daunting with bank’s legacy systems and lack of skilled personnel, the institutions should see this as an opportunity to improve their user-experiences and foster customer loyalty by permitting customer financial data and its use to be the field of customer choice whether in AISP or PISP choices.
Revamping the UX:
Customer journey rules the roost currently and providers need to provide quality services with state-of-the-art technologies to retain their customer base. To stay relevant and competitive the survival of most banks who have large volumes of customer data with them is in using technological advances in RegTech and increase their customer journey experiences to be on par with the competition. It currently appears that banks faced with legacy infrastructure and zero expertise in being part of the customer experience, only have the limited option of being collaborative with the leading providers like Amazon, Google, Paypal, Facebook, eCommerce and fintech companies.
To grow their customer base and stay technologically relevant banks will need to offer value-adds like a retail banking course of:
- Anywhere, anytime purchases using debit or credit cards needs to be accessible from any device mobile, watches, cars, etc and not through cards.
- Revamp their databases to give like the ASIP provides a 360-degree view of the customer’s account and profile to be able to procure services from the banks or providers.
Using data-driven insights:
Rather than use data obtained from customers’ interactions internally to offer improved services, banks should tie-up with third party providers and tech giants like Facebook, Google, Amazon, etc whose tech leveraging of customer journey analysis and user behavior benefits banks access to top-edge data analytics technologies. This move should help extract valuable customer journey insights targeted to offer customized and product targeted services to their customers.
Transform real-time customer journey data:
The Regtech implementation of PSD2 and GDPR has meant that banks battling for survival and competitiveness need to enhance their customers journey to a premium-quality user experience, build and manage consents and rejections, transform their real-time customer journey data into experiences, and embrace optimal data- governance while proofing legacy applications and systems to be compliant with the regulations to avoid penalties.
The regulatory changes are set to take off and client journeys are set to cross organizational boundaries. The exercise leads to several changes in technology and requires the banking industry to build skills and competencies around it.
The demand for data professionals is high and skill dependant. Do you want to make a career in the field of data science applied to the finance sector? Then, do your retail banking course at the Imarticus Learning Academy where you inculcate the essential skills and also get assured placements.
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