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Business analytics in banking: Three ways to win

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Banking technology can create unprecedented value

There’s never been a better time to be a banker. This statement may seem counterintuitive at a time when banks are struggling with rising costs, dwindling profits, regulatory burdens and demanding, digitally empowered customers. But the fact remains: bankers are poised to add unprecedented value in the movement of money.

1 billion users  will be using mobile banking services by the year 2017, up from 590 million in 2013

The traditional landscape of banking is gone forever, and the banks that succeed will do more than just manage money—they will build lasting, relevant relationships with their customers. So how do we modernize our institutions? How can we create change that extends throughout the entire enterprise, without false starts or excessive cost?

Redefine what’s possible

Smarter banking means banks can re-imagine everything about the way people connect, transact and engage with their bank. And banking technology can help expand business opportunities and draw customers closer.

For example, Banorte, a Mexico City-based financial institution, uses big data and analytics to identify products that uniquely suit each customer, creating an experience that feels personal again. Mobile technology is the ultimate multi-channel banking device, because it supports anytime, anywhere transactions and the extreme personalization that resonates with customers. Tangerine (formerly ING DIRECT Canada) cultivates strong relationships with customers by delivering full-featured experiences throughout a broad range of mobile devices and social media channels. And Eurobank uses social business to break down boundaries between its many business units, creating a cloud-based digital platform to unite exporters and importers around the world. The initiative has created 2,300 new partnerships and connections among international companies and 1.3 million portal page views.

When customers come first, growth accelerates

To make the most of financial-services operations and to forge a stronger bond with customers, bankers use cloud services technology. Signature Mortgage uses a cloud-based solution to ease the burden on its IT department—and to make the home-loan process easier for loan applicants, who can electronically review and sign applications anytime, anywhere. The company now processes loans in less than 25 days, and loan volume has jumped more than 30 percent. Another financial firm instituted a cloud-hosted marketing management solution that helps instantly reveal next-best-action scenarios for outbound and inbound marketing programs. The result: the firm increased customer responses to propositions by a factor of three and recorded a 35 percent reduction in marketing costs.

Marketing is the glue between sales and the customer.”

- Dan Marks, Chief Marketing Officer at First Tennessee Bank, who saw increases of up to 600 percent in cross-sale campaigns.

For bankers who want growth, speed and agility, a complex, siloed set of systems can be the single biggest impediment. But there is good news: advances in banking technology are matching the speed of change step-for-step. When banks move from monolithic applications to dynamic services that are hosted in the cloud, they can create new capabilities quickly and delight their customers. ScotiaBank saw a 72 percent reduction in customer wait times when leaders established an onboarding service that helps staff members in the business units to add customers and payment services “on demand” in self-serve mode.

Seek out banking technology that helps to mitigate risk

Threats abound in banking. Cyber attacks. Flawed risk assessments. Money laundering. Terrorism financing. Regulators want to lower risk, and that means an increased burden on security and compliance teams. But when a bank’s reputation is at stake, it matters. So don’t settle for a piecemeal approach. The best banking technology solutions are those that optimize risk management enterprise-wide by providing integrated security solutions that help prevent financial crimes, reduce operational risk, improve compliance and enhance security and IT risk management.

USD $30 billion Loss incurred when a large financial institution failed to assess known risks on its derivatives models

You can add an extra level of security without adding hardware that requires additional staff. For example, one bank that delivers retail banking products and commercial and services through mobile devices instituted a cloud-based security solution that can detect and resolve malware infections in a faster, simpler manner. In the first month, 72 infections were detected and removed from customer devices.1

Remove barriers. Build relationships. Bank on customers.

Embrace the mobile, social world with vigor and use big data to drive insights. By using the power of technology, bankers can add unprecedented value in the movement of money. Take action to reduce costs, manage regulatory burdens and satisfy your demanding, digitally empowered customers.

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