Building Tomorrow's Bank: Business Blog
“What next?” is one of my favorite questions. So, when we started asking the same about Finacle, I had a feeling that good things would result.
Sure enough, this questioning resulted in a new philosophy of how we
could help “build tomorrow’s bank”.
We know how tough today’s banking business is. Banks are caught between
multiple challenges of managing capital, staying compliant, keeping a lid on
cost, and dealing with both, a new type of customer and a new type of competitor.
The new customer sees no divide between where she does her banking and where
she lives her life. She wants the bank to be available to her everywhere, on
all devices, and at all times. The new competitor is quite often, a non-bank,
with a disruptive business model, which is trying to leapfrog the big boys.
Understanding these challenges, and their relevance in the short to
medium term, is a challenge in itself. At the same time, banks are encountering
powerful global trends in the form of the emergence of the digital consumer, smarter
organizations and sustainable tomorrow, to name a few, that are bringing untold
change, challenge and opportunity. I don’t see them being able to manage the
above unless they make substantive changes – by re-purposing, innovating or even
simplifying their business.
One may point out that banks have been innovating for years. Sure, but
the difference is that the same traditional banks, which have been content to
innovate in baby steps, might now need take a big leap. And that’s what
building tomorrow’s bank is all about. Tomorrow’s bank must not only innovate,
but do so faster and better than anybody else. It is accelerated innovation that they need in their journey to transform
into the banks of tomorrow.
Accelerated innovation apart, the success of tomorrow’s bank will be
driven by its ability to offer pervasive, convenient services at the right cost
to digital consumers indulging in a new type of commerce that is mobile, micro
and inclusive. This also means that tomorrow’s banking channels will have to
converge, more than they already have, to give the customer the whole multi-channel banking deal.
And finally, I think the cloud will play a much greater role in the
future scheme of things, not just as an alternative model of infrastructure,
but as a catalyst of innovation.
This is what building tomorrow’s bank is all about.
Comments
Post a Comment