1 November 2013

Tomorrow’s retail banking: What’s driving change?

Retail banking has changed significantly in the past fifteen years, with the standard operating model now including touchpoints and technologies far removed from traditional counter-based transactions. A recurrent focus on the customer is at the core of these changes, according to a recent post.

Writing at succcessfulworkplace.com, Rob Rensman has been exploring evolution in the banking world. Recently, he started with a premise made in an Accenture report, and looked at the ways the issues raised are affecting how banks operate, and how they must adapt to the future.

According to Accenture, he writes, “(…) the current branch-based distribution models are no longer sustainable when banks are faced with a triple challenge to their traditional operating model:

  1. Restoring customer trust and engagement
  2. Defending their payments business against new entrants (including online, mobile and tech companies)
  3. Avoiding commoditization of their products and services”

These pressures manifest themselves in three layers of the typical retail bank’s business: Channels, Features & Processes, and Systems & Infrastructure.

And it’s the first one – Channels – which especially resonates with our mantra of putting the customer at the center of a digital strategy.

Excerpted, here are his descriptions of how each layer will be affected by the challenges:

Channels: “The repositioning of branches in the channel mix and the adoption of a seamless mobile and online customer experience will have a fundamental impact on customer relationships. [Requiring banks to] … accept that the branch is no longer the primary channel to market anymore; at best it is an extension of omni-channel customer engagement; [and] recognising customers and customer needs at the point of contact independent of channel choice.”

Features & Processes: “Customer-centric systems and services [must be developed]; everything from personal data, profiles, history and behavioural patterns should be commonly available to all channels, including the branches and operators interacting with the increasingly mobile customer base… [As well as a] single (end-to-end) and channel aware customer delivery process.”

Systems & Infrastructure: “Technology that supports the new features and processes and delivers the information across the organization via a central hub, which could be a service-oriented architecture or a combination of connected applications (via open API’s) and data stores, powering standard processes and advanced analytics.”

Source: “A glimpse inside the retail bank of the future” (Rob Rensman, successfulworkplace.com)

Business processes (14), Digital strategy (22), User-centered design (12)

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