Digital transformation has changed the banking industry just as Amazon has revolutionized the e-commerce industry. Retail banks are under constant pressure to remain relevant from various sources including consumer demands and competition from other industry players like Google, Apple, Alibaba, and PayPal.
A recent study by Accenture found that Fintech ventures have tripled to $12.2 billion since 2014. Retail banks are digital institutions that capture and protect the digital identity of customers through customer identity and access management. This involves transitioning from legacy systems to modern scalable systems, which is often a tedious task.
Retail banks should go beyond just acting as facilitators and become true digital partners in day-to-day transactions of customers. They must also help customers navigate through difficult financial decisions and encourage them to buy the right products and services.
Here are five distinct factors for retail banks to go beyond traditional banking transactions to complete digital processes, allowing them to become closer to their customers.
#1 Retail banks need to implement a shared customer identity and access system that will eradicate data stored in silos.
#2 With digitization, banks need to move out of a multi-vendor Identity and Access Management system, which is a complicated structure that often causes banks to struggle to have seamless integration with users, devices, and services.
#3 Current systems and processes are not secure enough to safeguard customer data from malicious attacks and hackings.
#4 Banks must build trust among customers by ensuring them that data breaches won’t happen and that their data is protected.
#5 Retail banks must have a defragmented approach for identity management systems that will work in a collaborative model.
Banking institutions today must aim to create customer relationships that last forever. It is no longer enough to develop a one size fits all strategy. Instead, personalized products and customized services are the order of the day. Banks need technology platforms that enable them to deliver innovative experiences that customers want to come back for.
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