Contrary to popular understanding, truly digital banking is much more than just adding multi-channel capabilities and giving legacy processes a digital facelift.
Are you ready to rethink digitization?
Before we get into what digital banking truly is, let’s set out what it’s not.
Digital banking is not the same old banking business model enhanced with digital technology. It is not about adding new delivery channels. And it is certainly not about automating existing processes without reimagining them for the digital natives.
With our experience of working with financial institutions across 84 countries, we believe, the truly digital banking paradigm has four standout characteristics: It will mark a gradual transfer of power to the end points, or in other words, to banking customers. It will see the banking ecosystem grow in importance. It will consider insight its most valuable resource. It will automate processes and customer interactions, and deliver consistent customer experiences no matter the channel, location, or device.
Banks planning to digitalize must therefore rethink their entire business, their organization, indeed their very identity, to align with digital-age realities.
Our client, ICICI Bank - the largest private sector bank in India – is a pioneer in leveraging modern technology and has embraced the digital path. In the process, the bank has achieved an explosive growth in customer base and business volume.
Keeping pace with changing customer requirements, in 2015, the bank launched #icicibankpay, a service that allows users to transfer money, check account balances and transaction histories, and even recharge prepaid mobile plans, all through Twitter. This was quickly followed by the launch of Pockets, India’s first digital wallet that enables users, including non-ICICI customers, to transact on any website or mobile application in the country. Only a few months later, it launched iWear, the country’s first multi-platform smartwatch app that lets its customers stay connected with their bank accounts at all times. Riding on the sound technology foundation of multichannel capabilities offered by Finacle Core Banking, and Finacle e-banking solutions, the bank has pioneered many more industry-first innovations such as Flexi-fixed deposits, Goal based flexi-recurring deposits, Facebook Banking, Direct Banking, and Tablet Banking.Begin the journey to being a #TrulyDigital bank
Our client, Discover Financial Services (DFS), is a direct bank in the United States. It has just one branch but has a presence in all 50 states. It is the 33rd largest bank holding company in the country, with total assets of US$ 80.6 billion. And DFS too is committed to becoming a truly digital bank, co-opting Finacle as a partner in this endeavor.
As a first step in that journey, DFS looked to replace it complex legacy IT environment, which supported 100 discrete IT services, with 75 requiring point-to-point integration. Many of these services were also being used from hosted system providers. With pan-U.S. presence, compliance with multiple and constantly evolving federal and state laws was also a critical requirement. DFS selected a program with progressive renewal and modernization, minimizing risks and accelerating accrual of business benefits.
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys. Finacle has unparalleled experience of partnering with banks in their digitization journey. Today, Finacle is the choice of banks across 94 countries and serves over 848 million customers – nearly 16.5 percent of the world’s adult banked population.
Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination, liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide. Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others. Presented below are two of the most recent analyst assessments which underline Finacle's industry-leading capabilities in omni-channel and core banking solutions both being critical elements for designing a truly digital banking experience.
Renew and New: Infosys Finacle’s recommended path to #TrulyDigital banking
With banking disruption at the hands of a variety of digital “non-banks” a certainty, the only way incumbent banks can win is by playing the same game: relooking at the business afresh, upending legacy practices, and thinking like a startup. While banking leaders everywhere are eager to add new digital capabilities that will open up green field opportunities for growth and profitability, they have to also ensure their existing systems, processes and applications are capable of absorbing and supporting such capabilities. We believe, the dual strategy of new and renew, provides the framework for execution.
The strategy calls for the creation of new capabilities leveraging the latest technologies to enable business growth in unprecedented ways. While also renewing existing systems and processes leveraging mobility, analytics, cloud computing and connected systems for higher efficiency and agility, to respond effectively to the evolving environment.
The effective use of modern technology, within the culture of continuous innovation, is really the cornerstone to create a #TrulyDigital banking experience.
Get in touch for a consultative workshop on ‘Being a #TrulyDigital Bank’
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