Faced with growing competition from Fintechs that attract new users with digital payments and services, traditional banks must remain attractive. Regulatory changes are also driving innovation. As one of the most regulated sectors, banks need to protect their customers while remaining competitive and adapting to the ever-changing regulatory landscape in order to ensure their long-term viability. In this volatile context, automation allows them to innovate and offer new products and services more easily and at a lower cost.
The challenges of innovation in the banking sector
1. Remain competitive in a highly competitive environment
Banks must constantly innovate to remain competitive in a crowded and constantly changing sector. Fintechs are actively exploiting new technologies such as AI, machine learning, and advanced data analytics to offer cutting-edge services to their customers. Traditional banks will have to do the same to remain competitive. Offering the latest products and services through technology will also contribute to their reputation and brand image.
2. Responding to rapidly changing customer needs
With technological advances and changing consumer behavior, they expect banking services that are more personalized, transparent and convenient. Digital convenience is also a factor that has become decisive. They want to manage their finances on the go using their mobile phones, while maintaining the possibility of going to branches or ATMs. Banks must therefore offer a consistent omnichannel experience, reinforced by real-time updates.
3. Improving operational efficiency
Innovations in the banking sector can contribute to automate manual processes, to reduce costs and to increase the overall efficiency of banking transactions. Automation technologies can also help reduce errors, speed up tasks, and free up employees to focus on higher value-added work. Finally, digitizing documents and data can facilitate data accessibility and management. La optical character recognition (OCR) In turn, it makes it easy to scan, store, and retrieve information safely and efficiently.
4. Reducing security risks
Cybersecurity is at the heart of concerns when it comes to digital banking. Innovation can help mitigate risks associated with fraud, cyber attacks, and other potential threats to the banking industry. Machine learning can also be used to identify fraudulent activities, while biometrics can be used to increase access security.
5. Creating new revenue streams
By introducing new products and services, banks can create new revenue streams and tackle previously untapped markets. This is all the more important as charging for services such as transaction fees is now outdated, and by charging such fees, you risk losing customers. Partnering with fintechs and exploring cross-selling and upselling opportunities is an effective way to generate new revenue.
Automation as a key resource for banking sector innovation
1. Data orchestration
Automating data collection and consolidation is a critical task for banks that want to innovate. In fact, it makes it possible to obtain a unified and comprehensive view of their data, which can be used to gain deeper insights, better understand their customers, and monitor potential risks.
With effectively orchestrated data, banks are in a position to run advanced analytics and even integrate technologies such as AI to uncover valuable insights, personalize customer experiences, and identify opportunities for growth and innovation.
Orchestrated data also constitutes the basis for real-time data processing and analysis. Real-time capabilities enable fraud detection and personalized recommendations. These can in turn improve the customer experience through tailor-made offers. This offers a significant improvement in all aspects of the customer experience, from the welcome to the ongoing personalized interactions.
2. Create modern and intuitive applications
Apps are the foundation of any digital business, and banks are no exception. Automation tools such asThe platforms Low-code and No-code can accelerate application development and reduce the time to market for innovative banking solutions.
These applications can then be integrated into existing central banking systems., as well as other technologies, such as CRM platforms, in order to improve the user experience. Automation platforms facilitate seamless integration between different applications for efficient data flow.
Automation also allows banks to evolve their applications effectively, so they can adapt to changing demand. The flexibility of scaling promotes the adoption of new technologies, so banks can continuously develop their offerings and adapt to any future innovations that will support their products and services.
3. Strengthen organizational agility
Third, automation can help banks streamline their processes by automating repetitive and manual tasks. This provides agility both internally in the form of project management, and externally for customer service. Automation tools facilitate task management, collaboration, and real-time visibility, helping banks prioritize work and deliver solutions more quickly.
Agile customer service often comes in the form of Chatbots automated who can handle customer inquiries and guide them through self-service processes. This frees up employees to focus on more complex, high-value interactions.
About StoryShaper:
StoryShaper is an innovative start-up that supports its customers in defining their digital strategy and the development of automation solutions tailor-made.
Sources: StoryShaper, Bizagi.
