Traditional banking value chains have been disrupted by new entrants. The always-connected, digitally savvy customer is turning to alternative banking providers. Financial technology providers, known as fintechs, are fueling rapid innovations.
Addressing the challenge of open banking, disruptive new competitors, and Big Data, many banks pursue five strategic priorities to move to digital banking and beyond.
Improve the customer experience
Engage customers with a real time, multichannel digital experience. Delivering a seamless, consistent, channel-optimized, and customer-centric experience drives customer satisfaction and loyalty
Predict customer needs
Big Data and predictive analytics of structured and unstructured data provide 360-degree customer insight, enabling banks to anticipate the needs of their customers and rapidly engage them in real time.
Reduce operating cost
Decreasing cost to combat reducing margins and increasing competition requires simplification and automation of processes.
Meet regulatory and compliance standards
Comply with laws, regulations, and industry standards with a platform-driven architecture.
Enable open banking and platform-based business models
Drive innovation in the areas of digital customer engagement, machine learning, and blockchain. Invest in open and agile software platforms and APIs to respond to competitive challenges created by open banking and PSD2.
Enable the end-to-end digital banking value chain
Digital business models influence all areas of an end-to-end banking value chain.
Banks must attract, cultivate, and retain customers by enabling an integrated, multichannel environment. They must analyze each customer’s behavior and point of view to succeed in the digital age. This lifestyle view determines what products are created and what services are offered when and where.
Origination and customer management
Banks should be able to process applications centrally, regardless of their source, in a digital, multichannel world. They should be able to respond quickly thanks to a high degree of automation. Decisions should be based on accurate and complete customer information provided through automated application processing.
Core banking operations
Banks need to deliver customer-centric products and services using a 360-degree customer view enabled by streamlined and automated retail banking operations and a seamlessly integrated finance, risk, and compliance system.
Finance and risk
Banks are required to keep their systems and processes up to date in real time in a complex regulatory environment. They need to meet regulatory requirements in an easy and flexible way to keep costs down. Management of operational and financial risks can be done on premise or in the cloud.
Business support management
Banks need to attract, develop, and retain top talent by simplifying HR processes and programs. They need to prepare their workforce for digital change through online self-service learning programs and better control temporary workforce costs and compliance. They should manage and optimize their procurement processes and employee expenses to control costs.
DYCSI provides you with the required financial technologies to fuel rapid innovations. Contact us to learn more about SAP Cloud for Banking and how we can help you grow your financial business.