The traditional structure, operation and priorities of a typical banking business is rapidly evolving day-by-day as new regulatory pressures, technological considerations and consumer expectations continue to grow year on year.

In particular, customer-centric banking is evolving in line with the advancement of our digital world. The catch 22 for banks is that as innovation and AI grows, consumers become much more accustomed to personalised and streamlined services, meaning the banks are always chasing their own tails.

While this should by no means deter banks from embracing the latest technology at every stage of their operations, it does mean that extra consideration needs to be made when approaching how best to serve the customer.

With increased expectations comes increased opportunities for competitors to poach and retain customers. Ultimately, the banks that fail to react to innovation and customer needs will lose ground in the long run.

So, with this in mind, it is imperative to utilise the technology that will enable the bank to provide the best possible services.

Technology to improve banking operations

Debit cards, ATMs, contactless payments, open banking, the list goes on. Technology, and in particular, AI, has played a fundamental role in the development of the sector for several years now, and will continue to do so for the foreseeable future.

Much like the typical consumer at an ecommerce giant, such as Amazon or Apple, a banking consumer now expects to carry out what they need with minimal effort, and in most cases, without speaking to an actual person directly.

The digitalisation of banking now allows businesses to excel in areas not limited to:

  • Ease and accessibility for consumers
  • Customer service
  • Data sharing
  • Personalisation
  • Financial research.

Go one step further, and the introduction of digital face-to-face conversations, seamless integration of services and products and rapid transfers and transactions all lean towards this idea of building relationships and trust in line with the development of AI, while achieving a ‘customer-led’ model.

In fact, according to a study conducted by Genpact, a quarter of senior executives say they plan to fundamentally reimagine their businesses with AI by the end of 2021.

Achieving a new ‘optimised reality’ in banking

The idea of an ‘optimised reality’ for banks is referred to in the ‘Banking In The Age of Instinct’ report by Genpact.

It outlines how in the coming years, banks will “curate experiences, products and services to customer mindstates and needs as touchpoints become more fluid, varied and responsive”.

Essentially, market leaders in the banking sector will be able to use the emerging technologies at their disposal to create an unrivalled service for consumers, ultimately moving away from the traditional structure in order to be more experiential and agile.

By utilising chatbots, apps, augmented workforces, cloud-based security systems and much more, banks can connect to the technologies that will be fundamental in the years to come, predict consumer expectations in order to create reliable products and services, and adapt to maintain the relationships that will ensure continuity.

Here at MDA Training, we are currently navigating the challenges of COVID-19 for businesses in the banking sector by enhancing our digital and virtual solutions to connect the remote workforce in a world dominated by social distancing.

In addition, we are regularly providing content and guidance for businesses on our new learning and development resource centre, MDA LearningLab, as well as our dedicated YouTube channel.