The right-fit technology partner is key to future sustainability of the banking sector
As ongoing technological innovation continues to disrupt traditional business models across various industry sectors, it is within the financial services sector, that it is perhaps having the most profound impact.
Here the rapidly changing competitive landscape is already having an impact on the profitability and returns of traditional market participants in the banking sector, as Fintech companies and “over-the-top” or non-traditional banking participants continue to bring more innovative, efficient, and cost-effective solutions to specific market segments.
Now more than ever, it is therefore essential for players within the banking sector to become more strategically focused and technologically advanced to respond to these challenges in order to remain sustainable.
Leveraging technology to keep abreast of global trends
BCX’s white paper South Africa’s Banking Vision 2030: A tale of two realities, in association with Frost and Sullivan, highlights the fact that prominent global trends – customer centricity, digitalisation, reduction in physical footprint, virtualisation of customer channels and data security – are just as relevant, and already having an impact, within the South African context.
When it comes to customer-centricity, banks have moved away from product-centric practices to adopting a more holistic and long-term view of each customer’s evolving life-cycle needs.
Through leveraging data and analytics to strengthen customer insights, banks are now able to provide customised products and services supported by enhanced customer engagement through an overarching omnichannel strategy.
This is unsurprisingly another key trend where banks are implementing emerging technologies to improve or replace legacy systems, enhance and streamline front and back-office operational efficiencies.
On the front end, banks are automating basic communication and advisory functions through chatbots, using technologies such as AI. Back-office operations are being automated through the use of robotic process automation (RPA) technologies. The digitalisation roadmap is further supported by capabilities such as Cloud, data analytics, and IoT.
Reduced physical footprint
The entrance across the banking value chain of fintech and digital competitors that do not have costs associated with maintaining a physical infrastructure has put into focus the need to limit such costs. To remain competitive, traditional banks are reducing their physical footprint which at the same time means increasing their digital footprint.
Collaboration between banks, to further drive costs out of their operating models, could be on the horizon e.g. sharing branch and ATM infrastructures as well as non-differentiating back-office systems. Banks are also virtualising their channels to market, moving from very physical to virtual channels e.g. chatbots and virtual assistants.
As digital banking expands, banks are increasingly exposed to data breaches that could lead to customer data loss, data manipulation, financial losses and loss of customer confidence. Banks’ vast amount of customer data and financial assets makes them natural targets. Naturally, cybersecurity is top of mind for both banks and regulators to secure, detect, and respond to cyber-attacks.
A future-proof business model requires a right-fit technology partner
To ensure long-term relevance, these key trends mean that traditional banks are therefore having to prioritise ways to accelerate modernisation, automation and transformation by partnering with technology providers that can assist with both driving innovation and the development of cutting-edge solutions that leverage data, advanced analytics, and digital technologies.
As a leading ICT solutions provider to the financial services sector, BCX understands that with telecommunications, media, technology, Internet and IT boundaries are becoming increasingly blurred.
As such, effectively future-proofing banking business models requires the incorporation of digital technologies to ensure there is a focused approach towards driving operational efficiencies (and therefore business excellence) in delivering greater customer experiences.
In line with the goal of reinventing the customer experience for its clients, BCX has adopted the next generation digital operating model and has prioritised investment in a number of new solutions including:
- Converged connectivity and communication
- Extensive Managed Services
- Mainframe as a Service
- Cloud enablement and advisory services w.r.t readiness assessment, design, application transformation, planning, transitioning, management and operations
- Artificial Intelligence (AI)
- Robotic Process Automation (RPA)
- Big Data and Analytics
- Cyber security
- Packaged applications
Although the South African banking industry is by no means facing catastrophic failure, South African retail banks remain under enormous pressure to reduce costs and to innovate to remain competitive.
BCX recognises that our success will be measured on how well our solutions meet our clients’ customers’ needs and helps them solve their current and future challenges.
So, while technology may change, one thing remains the same. We’ll put your business right where your customers are. Because at BCX our most important customer, is yours.
Contact a BCX industry expert today. Visit BCX.co.za, so that together we can re-invent customer experience.