Winning in Digital Banking Disruption with Ecosystem Thinking

Embracing innovation and disruption while building effective ecosystems to usher next-gen financial services

Today, almost all services are being disrupted including the financial services sector. Innovation is reshaping nearly every aspect of financial services and this change is going to continue with or without banks.

Digital-savvy millennial consumers are moving online, expecting seamless digital services at their fingertips. Financial institutions are expected to meet customers’ demands regardless of location or platform – smartphones, tablets, computers or even offline.

The rapid digitalisation and paradigm shift in the regulatory environment are forcing traditional banks to undergo a fundamental transformation – from a regulatory and organisational-centred approach to a more customer-centric approach.

However, traditional banks and financial institutions have to contend with multiple challenges tied to disruptive models and technologies, legacy systems, regulations, new competitors, and restive customers, while pushing new strategies for sustainable growth.

There is a need for banks to recognise the growth opportunities stemming from digital technologies and deploy new platforms, new value propositions and intelligent business models.

So, how can banks stay ahead of the curve and retain a competitive edge?

Enhancing Customer Experience and Retention

The plethora of the technologies creating a connected lifestyle is leading to intense personalisation and driving the cost of losing a customer higher as they are likely to walk away after just one bad experience.

Banks are investing heavily in their digital experience by replacing legacy digital channels and featuring next-generation platforms that leverage the latest technologies.

At the same time, it remains imperative for digital banks to retain the fine balance between online and offline digital banking experiences as not all customer engagements are proficient in the online space.

Many transactions across South East Asia region are still carried out in an offline environment creating an inconsistent experience and inconveniences for digital banking customers.

Investing in multiple channels of customer engagement services that allow the customer to meet multiple needs through a connected experience will give any digital bank a competitive advantage over its competitors.

New Channels in Client Engagement and Collaborate to Compete

Collaboration has increasingly become the answer to ease the burden on traditional banks to digitalise their business models, improve customer experience and address competition from disruptors.

Banks need to proactively adopt an open banking approach with open source APIs by connecting with a wide range of lifestyle ecosystem partners who provide online services across industries - entertainment, e-commerce, property, ride-sharing or automotive - to offer a more comprehensive experience for the customers.

Easy-to-configure and rich sources of open APIs are the key to enable smooth integration into the ecosystem, and it supports quick time-to-market for new products and a roadmap to open banking.

Through a collaborative approach with partners in the ecosystem, banks are afforded more chances of introducing banking to everyday life activities and, as a result, capturing new revenue streams and growing their customer base.

Leveraging AI and Big Data for Better Customer Experience and Risk Management

Digital banks predominantly make use of Artificial Intelligence (AI) or Big Data to better understand the needs of customers that could be used for predictive sales analysis. Yet, the same technology can be used to better manage risk.

Ideally, financial institutions must expand the use of these advanced technologies across organisations that encompass every business process and function.

Ecosystems enable banks to obtain massive amounts of customer information ranging from logistics data to behavioural data.

With new customer data coming across the entire financing cycle from pre-loan to post-loan stages, digital banks could leverage these new data sets from biometric authentication to make a better judgment on credit assessment on top of the traditional data that are already available.

OpenGov Asia is pleased to invite you to our exclusive OpenGovLive! Virtual Breakfast Insight aimed at imparting knowledge on how digital banks can embrace and implement advanced technologies and an ecosystem approach to achieve fast and convenient product innovations that drive growth and efficiency of banks.

This session serves as a great peer-to-peer learning platform to gain insights and practical solutions to create an immersive online and offline experience for digital banking customers.

We will be discussing:

• Focusing to provide a convenient and consistent experience with comprehensive omnichannel services
• Mitigating risks through the use of advanced technologies
• Key challenges surrounding the rollout of digital banking capabilities with advanced technology
• Integrating new platforms and applications into an existing core banking system
• Ways to build effective ecosystem around digital banking services
• Strengthening customer experience through the expanded use of AI and Big Data

Who Should Attend:

• Chief Digital Officers
• Chief Executive Officers
• Chief Information Officers
• Chief Innovation Officers
• Chief Transformation Officers
• Heads of Information Technology
• Heads of Digital Channels
• Heads of Risk Management