Align marketing, sales and service on a single CRM platform and manage the complete customer journey – from lead to order, and continued account maintenance.
Top 6-fundamental-enablers-of-digital transformation-2017
1. Top 6 fundamental
enablers of digital
transformation for
banks and financial
firms
Key findings:
Why customer experience is considered to be
key enablers of digital transformation for
financial institutions and banks
What tools financial companies should utilize
to become a digital service provider and meet
the needs of digitally savvy customers
What today’s technology has to offer to drive
change in financial institutions and banks
2. Customer
experience
is the key focus
of digitalized
financial
institutions and
banks
01
Today, customer experience lies at the heart of the business technology agenda,
which means simplifying customer-facing processes to make digital interactions quick
and delightful. With digitally native customers at the forefront of business technology
priorities, digital transformation is repositioning to address organizations’ biggest
opportunities becoming a central component of long-term business strategy.
To become more agile and deliver exceptional customer experience (CX), traditional
financial institutions and banks find themselves exploring their technological options
that provide them with insights into customer behaviors and enable them to connect
customer-facing and operational teams.
By 2025 only about 10%
of consumers will fall into the
traditional category, and about
60% will be «digital natives».
(PwC)
of financial services firms cited the
ability to drive customer experience
as the biggest driver for change.
(Forrester)
оf all analytics projects will relate
to an aspect of customer
experience by 2020.
(EnterBridge)
of bank executives say that
a customer-centric model
is «very important».
(PwC)
61%
Between 50% and 65%
of financial services firms expect
innovation in CX, channels,
and digital and intend to invest
in them correspondingly.
(Forrester)
50% & 65%
82%
of companies recognize
customer experience
as a competitive
differentiator. (Dimension
Data)
62% 40%
10%
3. AI and Machine
Learning
is rewiring
the financial
industry
02
The financial sector is embracing Artificial Intelligence and machine learning to win over digitally savvy customers
and deliver high-touch customer experiences. Harnessing this disruptive technology offers plenty of opportunities
for financial institutions including: customer support, transactions and helpdesk, data analysis and advanced analytics,
underwriting loans and insurance, repetitive tasks and performance.
Intelligent tools augment the capabilities of financial pros by enabling them to easily identify customers’ preferences
and react with deeper insight and emotional intelligence, which is essential for the development of meaningful customer
relationships. By leveraging intelligent tools, financial institutions and banks become technologically sophisticated
and capable of delivering better customer services by providing advice tailored to specific and complex customer needs
and increasing operational efficiency.
Deploying AI allows financial institutions and banks to provide customers with various services as making better risk
decisions and conducting more accurate risk credit assessments, wealth management and financial advisory.
Modern financial companies harness AI and Machine Learning capabilities to assess large volumes of complex data like
econometrics, industry trends, peer analyses, foreign and domestic tax rates, bank fees, interest rates, cash-flow cycles/
seasonality, liquidity needs, costs of capital, etc. As a result, financial pros are armed with the right tools to make quick
and better decisions.
USE CASE
Capital One Bank leverages machine learning capabilities for payment spend
analytics and personalized coupon/ alerts. Chase and Banco Bilbao Vizcaya
Argentaria (BBVA) employ machine learning for card fraud and targeted
customer offers.
63%
of insurance CEOs believe that the
Internet of Things will be strategically
important to their organization.
(PwC)
of firms said increasing worker
productivity was the reason they’ve
deployed AI technologies
(Narrative Science)
13% 10%
Roughly 10% of the organizations
are using AI to compete with peers
and identify opportunities in their
data that would otherwise be
missed. (Narrative Science)
4. 03
Artificial Intelligence provides financial pros with the intelligent tool of predictive analytics that augments their capabilities to
create high-touch customer experience. Analyzing all internal and external customer data and converting it into actionable
insights not only allows financial pros to provide real-time advice and solutions, but also anticipate future financial needs
on a customer level. It enables financial pros to know each customer, provide customers with personalized offers, making
one-to-one relationships a possibility and drive revenue.
New innovations empower financial institutions to capture, analyze, and act on data — in real time, and in a programmatic
manner and create truly exceptional, meaningful and memorable moments for consumers. It results in more efficient credit
decision-making processes by cutting down timelines, more dynamic assessment of credit line, etc.
Financial institutions and banks can employ this intelligent tool for various functions like credit risk assessment, credit line
management, fraud risk management, more accurate cross- and up-sell, or for customer churn prevention.
Advanced data
analytics to gain
valuable insights
of customer
behaviors
USE CASE
PayPal uses real-time payment fraud analytics, while JP Morgan Bank employs
real-time analytics for loan approvals and Goldman Sachs Group utilizes this
tool for monitoring trade fraud.
of financial services CEOs indicate they are now
quantifying the value of data as a financial asset. (Gartner)
of firms indicate they now have a chief data officer.
(Gartner)
54% 43%
of firms indicate they actively buy data from external
sources. (Gartner)
of firms indicate they actively sell data to third parties
as a source of revenue. (Gartner)
50% 27%
6. 05
Robotic process automation (RPA) enables financial institutions and banks to seamlessly
automate a big volume of processes that are rules-based and stable and are supported
by digital data. Leveraging extended robotic capabilities enables financial companies
to automate and build an automation platform for front office, back office and support
functions. It allows for intelligent automation of the core business processes of banking,
capital markets and insurance sectors.
Utilizing RPA software enables modern financial institutions and banks to nimbly implement
tailor-made solutions with a quick turnaround and achieve significant operational efficiency
and accuracy.
81% of businesses believe RPA is a significant digital transformation. (Capgemini)
Within Finance itself, there is an opportunity to automate more than 56% of the roles. (Deloitte)
RPA implementation can provide companies with a cost reduction of 35% - 65% for onshore process
operations and 10% - 30% in offshore delivery. (The National Association of Software and Services Companies)
57% of organizations look to increase process quality through innovation. Robot-based end-to-end processes
reduce the need for human involvement to exception processing, which increases consistency. (Deloitte
20% of respondents identified reduced transaction times as an area to be addressed. Robots have a tolerance
to work 24/7/365, and can complete routine mundane tasks that employees often find draining. (Deloitte)
Up to 45% of the activities individuals are paid to perform can be automated by adapting currently
demonstrated technologies. (McKinsey & Company)
RPA is expected to see a compounded annual growth rate of about 60.5% worldwide through 2020.
(Transparency Market Research)
Robotic process
automation
to seamlessly
orchestrate
business
processes
USE CASE
Wells Bank employs RPA for mortgage processing and reconciliations.
JPMorgan Chase Bank uses the robotic process automation for ledger
reconciliations, and ICICI Bank employs this tool to automate reconciliations
of ATM declined transactions and disputes.
7. Process-driven
CRM backed
by robust
intelligent tools
06
In order to survive in the digital age, financial institutions and banks have to go ‘agile’
through utilizing intelligent technology that enables them to interact and serve customers
faster and better.
To offer competitive, feature-laden, and well-designed digital products and services, at the
same time maintaining high speed-to-market and lowering costs, financial institutions have
to employ the effective IT strategy supported by the best-fit technology. Utilizing the right
tools can speed up the digital transformation and offers solid opportunities for financial
companies. For instance, simple automated tasks can assist middle and back office
operations such as loan underwriting, reconciliation, and risk model development, and
deliver tremendous value across segments.
Deploying a process-driven CRM solution with AI-powered tools enables financial
institutions to continually test and modify business processes to fit their specific needs,
detecting inefficiencies and nimbly revamping workflows. Forward-thinking financial
organizations take advantage of an intelligent CRM system to become more agile,
customer-centric, streamlined, and efficient.
Creating a flexible business
technology foundation is very
important for financial services firms.
Legacy business applications and
architectures work against this goal:
They cause huge technology and
application risk, which is still one of
the top drivers for change for 21%
of respondents in financial services
companies. (Forrester)
Automation should allow financial
services groups to cut costs as
a proportion of revenues by 15%
points. (Financial Times)
64%
Focal points of digital
transformation are omnichannel/
cross-channel solutions (64%),
analytics/ business intelligence
(52%) and building the architecture/
application infrastructure
supporting transformation of apps
landscape (39%). (Forrester)
21%15%
8. Conclusion
In the age of the customer and intelligent technology, financial institutions and banks
are under increased pressure to pay attention to technological developments and
are quickly adapting to these changes. Intelligent technological tools offer financial
institutions a huge opportunity to deliver exceptional and memorable customer
experiences.
Furthermore, Customer Relationship Management (CRM) solution backed with these
AI tools provide financial pros with the right blend of technology and human touch.
An intelligent CRM solution ensures a complete view of your customers, keeping all
their preferences and interests in a centralized repository accessible for financial
pros, and enabling them to provide a high-touch customer experience and
orchestrate core business processes.
With AI-powered tools, financial pros can exponentially enhance customer journeys
with more a personalized approach. Embracing Artificial Intelligence is at the
forefront of propelling financial institutions through the digital age of the customer.
