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Banking 2030 – Getting Prepared For The Digital-Only World

AI equips financial institutions with learning and problem-solving capabilities, modernizes their operations and as a result vastly improves their customer experience.

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Technology is transforming the landscape of the financial services industry, and with evolving customer expectations and changing business dynamics, we are rapidly moving toward a digital-only world. Speed, agility, paperless, remote working, touchless, and contactless are some of the buzzwords that will drive the technological advancements in the financial services industry. Therefore, investment in innovative digital tools must be accelerated to stay on the cutting edge.

Adapt or Lose

Customers are taking more control of their relationships with banks, as they are moving from one bank to another more frequently and buying products from more than one bank. They expect proactive communication with faster resolution of queries and a seamless digital experience. As banking moves in a direction where financial services can be fulfilled with just a tap, banks are required to adapt to changes quickly and ensure the financial wellbeing of their customers.

However, siloed and manual processes continue to hamper banks’ digital transformation efforts, resulting in delayed and substandard customer experiences. They end up with an entanglement of multiple systems over time with limited scalability. This provides fintechs and other competitors leverage over traditional banks.

How to be Prepared?

Earning customer loyalty requires meeting their needs, exceeding their expectations, and providing them secure financial services. According to a report on digital banking in 2030 by KPMG*, the four areas of focus that will enhance banks’ abilities to ensure the improved financial wellbeing of their customers are:

1. Data
Customers will expect high levels of security and transparency on how their data is being used, as well as more personalized products and services

2. Business Models
Banks will have to explore new opportunities adjacent to their core offerings by extending their business models. Industry boundaries will be blurred as players in other sectors will bundle financial services with their own

3. Regulatory Compliance
Financial regulators will ensure compliance by building new structures powered by tools, such as artificial intelligence (AI) and blockchain, to supervise and safeguard financial transactions

4. Innovative Technologies
As innovation pushes into new areas, emerging technologies will combine to transform banking from what we experience today

Financial institutions need to prepare for the future and stay a step ahead of their customers’ expectations. This can be achieved by adopting the following tools:

Low code platform
A scalable, low code, and robust process platform is crucial for becoming a bank of the future. The platform bridges silos and offers agility for sustainable and continuous improvement. It enables banks to focus on evolving business needs, changing regulatory compliances, and delivering a delightful customer experience

Artificial intelligence
AI equips financial institutions with learning and problem-solving capabilities, modernizes their operations and as a result vastly improves their customer experience. It enables enhanced risk and fraud detection and provides massive back-office cost savings. AI empowers employees by eliminating any guesswork associated with decision making and facilitating faster, data-driven decisions. It allows banks to offer their customers a unique user experience with an added human touch.

Cloud-based solution
The cloud-based infrastructure is connected to multiple servers simultaneously, enabling financial institutions to scale processing capability based on evolving market conditions without any additional investment. This helps them to cater to customers’ demands while staying current and relevant. It requires minimal maintenance, provides a high level of data protection through strict authentication methods, and ensures compliance.

When it comes to retaining customers, there is no room for delay. Banks must adapt to changing market dynamics to gain a competitive advantage. This can be done by understanding their customers better and investing in technologies that provide long term gains. In the future, the winners will be those who are able to utilize their data, ensure their customers’ financial wellbeing, reduce costs, and provide robust cyber security.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Mr Ritesh Varma

Global Head: Business Solutions, Newgen Software

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