Accelerating the connected bank

Clara Monnet
By Clara Monnet under Insights 11 September 2019

The digital revolution offers real opportunities for retail banks. The influx of digital first, mobile only challengers highlights the potential for modern business models, based on great customer experience and low cost digital interaction channels. 

But to match the expectations being set by the competition, existing players face some key challenges. The tools, systems and processes they use were created for a world where fast was measured in days, not seconds. Waiting 1-2 weeks to get a card or a paper statement was expected and acceptable. Having to physically go somewhere to prove your identity was a necessity. Now that customer and market expectations have changed, how can we change the tools, systems and processes without breaking the bank?

How do you make the old and the new work together?

It’s not about tearing down the old and starting from scratch. It’s about identifying where existing capabilities and new tools can work together, and how to get there with the least disruption. How can we fix broken workflows? How can we better understand and serve our customers? How can we empower our colleagues and break down silos? How can we better anticipate new market developments, and react to them faster?  

Technology alone isn’t the answer. Technology only delivers value when it’s combined with the culture, structure and capabilities that continually deliver valuable products to customers, and properly integrate partners and providers where they can add value. The answer lies in becoming more connected.

How can retail banks become more connected?

Connected Organisations today are powered by 5 key capabilities and behaviours - real time data gathering and capture, streamlining workflows, empowering service staff, seamless collaboration and live insight generation. There are lots of opportunities to apply one or more of these capabilities and behaviours to help banks solve key problems - as TAB has with clients like RBS, Santander, and more.

 

A couple of example problem areas:

Fraud and Security

In the past, banks would block all overseas transactions if they identified behaviour they considered suspicious based on a limited number of data points, and you’d be stranded abroad with no way to pay and a long costly phone call. 

A connected bank will use real time data gathering to capture more information about you, your location and spending history to make more accurate decisions. They can identify unusual behaviour on an account, run a machine learning model to more accurately identify potential fraudulent activity. With seamless collaboration, it’s not only that these data points will not be stuck in business silos. The resulting insights can be easily shared between back office and customer service teams to easily coordinate interactions with the customer, help the team make a timely decision and minimise the risk of exposure, communicate with the affected customer, merchant and partners and only block a card when it’s genuine fraud. 

 

Bank branches 

While there are huge opportunities for self-serve innovations, there’s still room for face to face interaction in 21st century banking, but banks have to be making the best use of their physical presence. Deploying inexpensive IoT sensors can help colleagues identify the best time to take their break, manage busy periods, alert customers when to come in and when to avoid queues. Empowering service staff with intuitive tools both in branch and other channels, to enable staff to smoothly deal with customer journeys regardless of where they start would reduce the need for customers to duplicate information input, make life easier for staff by giving them a single and accurate view of customers and free up time for value add time spent with clients, not on admin. 

Accelerating the connected bank

There are a plethora of opportunities for retail banks in becoming more connected. But getting there is where we’ve seen many organisations in need of help. We’ve also identified routes to helping organisations become more connected, faster - we call them Accelerators.

Download a copy of Connected Organisation whitepaper for more information on how to get started on your journey towards becoming a more connected organisation. 

 

If you want to find out more – get in touch.