Banking on—and in—the future
Though the global economy is still shaking off the effects of the past and current financial crises, banks in both emerging and developed economies have an opportunity to manage enormous capital growth and wealth creation. To regain customer confidence and earn their slice of the increasingly competitive market, banks must transform themselves.
Smarter retail banking
The banking industry has to fundamentally reorient their business models, by moving from product-centric silos to customer-centric strategies. See how it's done. Watch the video (00:05:22).
At the same time, the needs and nature of the financial services customer base have shifted dramatically. Today, 2.5 billion people―or half the world’s adults―don’t use formal financial services to save or borrow.1 Banks are struggling to regain the trust of customers, counter-parties, regulators and governments after the tumult of the financial system in 2008.
In a competitive landscape that favors the fastest and the smartest, banks and financial services firms that invest in systems for sophisticated insights and predictive analytics will be better positioned to emerge as market leaders. There are new ways to understand your customer better, have more information for risk decision-making, and develop products precisely for the needs of the customer.
Here’s how we see it happening.
Pushing the frontiers: CFO insights from the Global C-suite Study
A series of conversations for a smarter planet
Smarter money for a smarter planet (1.2MB)
Four imperatives for banking transformation
Attract and retain customers
Make your customer an organizing principle to re-align data insights, operations, technology and systems.
- Engage your customers in insightful conversations―not just a pleasant banking experience.
- Provide a consistent cross-channel experience, such as those from retailers or airlines, including self-service, mobile apps and social integration.
- Capture every customer moment of truth in real-time, across both staffed and automated channels, to trigger appropriate actions.
- Market and sell services and products based on life events, as informed by customer data and predictive analytics.
Revolution of the Customer Focused Enterprise
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Bank on the Customer
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React faster to changing market conditions while creating long-term sustainable differentiation in the marketplace.
- Create a flexible and agile banking environment to quickly respond to business needs.
- Align business, operations and technology to drive out complexity and cost.
- Modernize and transform back office systems into modular building blocks.
- Build and/or change once and deploy across channels for superior customer experience.
- Manufacture products just in time at point of sale, tailored to your customer’s needs.
- Dynamic risk adjusted pricing based on customer’s propensity to pay to maximize revenue potential.
Core Banking Modernization: an Overview
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Customer innovation and growth in financial services
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Financial institutions who have transformed the way they innovate their payments and transaction processing, and effectively manage costs are gaining a sustainable advantage.
- Transform and modernize traditional legacy payment and transaction systems.
- Understand payments streams and cash flows providing greater transparency.
- Reduce false positives to improve customer satisfaction and decrease operational costs.
- Simplify the process of bringing onboard new and existing customers.
- Enforce rules for all payment workflows including clearing, settlement, routing and risk mitigation.
New Business Models for Transaction Banking
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Maximize return on equity, combat fraud and mitigate operational risk while achieving compliance objectives.
- Fight fraud and reduce risk by running highly complex pattern detection algorithms on years, rather than months of transaction data.
- Collect risk information from across the business to aggregate it at the enterprise level, and then locate the key risks in the business.
- Improve operational decisions like pricing and counterparty exposures with a real-time understanding of incremental risks across the firm.
- Use sophisticated analytics and scenario analysis tools to model portfolio risk exposures, risk return, capital allocation.
- Consolidate risk and compliance activities onto a common platform to reduce the cost of compliance.
Compliance Uncompromised
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Integrated risk management in banking
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1 The Financial Access Initiative, a consortium of researchers at New York University, Harvard, Yale and Innovations for Poverty Action, "Half the World is Unbanked," http://financialaccess.org/sites/default/files/publications/Half-the-World-is-Unbanked.pdf (October 2009).