The move away from messenger-based banking was so small that we barely noticed it. There was a time when you had a personal relationship with your local branch manager with whom you met regularly, understood your finances and gave you very common advice. This digital technology changed, focusing on convenience, increasing competition and making mobile messenger experience a key difference. While these advances have benefited consumers in many ways, in some cases it has removed pressure from the messenger-focused model that once defined banking .
With the advent of Covid-19, this became increasingly apparent and highlighted the need for relationship banking, especially for vulnerable and non-digital customers. The crisis affected the financial stability of many people and raised many questions about the support available to customers. In addition, customers who used banking services during this period typically required face-to-face interaction, such as mortgages, were now moving through. Process this digitally.
At the same time, we reached a critical mass of new entrants. Banks now have to try to change and keep away from competition, while maintaining the customer-centric customer-friendly relationship and traditional processes, in addition to the digital banking favorites.
Covid-19 has emphasized the different needs of customers depending on their situation and has demonstrated the importance of focusing on specific and personalized services depending on the individual needs and desires of customers. We see a return to relationship banking in 2021 as a priority, but now combined with the convenience and benefits that digital banking offers. It’s a fine balance, but using the right technology will be crucial for banks to deal with customers in the right way, depending on what they expect.
Significant increase in cloud adoption in banking
While cloud banking has been on the platform over the last few years, the perceived technological threat has prevented this in any significant way. However, now the business risk of not implementing cloud technology has overcome this technological risk. This is mainly due to two elements:
- With competition reaching a critical mass in the banking industry in recent years, flexibility is crucial in competing and rapidly driving new products to market. A bank can decide to no longer upgrade and accept clouds, unless they are exposed to the risk of passing and disappearing.
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Covid-19 has turned banks into an unknown future. Banks had to change processes and policies overnight in response to changing customer requirements and requirements, for which no property-based legacy systems were built. As the crisis escalates, banks are sailing blindly on how to proceed. This has underscored the need for a system that allows banks to pivot quickly and smoothly.
Cloud technology is critical for banks that compete and survive in this new era. While this move has always been inevitable, developments in 2021 have made this unsustainable and as a result, we will see the adoption of cloud banking in 2021.
Innovative movement of rooted finance
While we will not see major technology and non-banking players entering the banking industry in any significant way in 2021, we can expect these players to make cautious, strategic moves towards presence. famous, permanent.
Big technology and banks think differently and move at different rates, which is a challenge for both sides. Regulation is also another issue for large technology companies. Steps are necessary to overcome these barriers that non-banking players will continue to face through 2021.
The role of AI
Larger banks and financial institutions that have not implemented a flexible banking platform sometimes have problems with digital interaction between clients. Oftentimes they struggle to be flexible enough to build something ‘on the fly’ that would be individual enough for clients. For these large institutions, AI will play a key role in the way they shape customer visits and the way customers interact with banks.
While we do not recommend that AI be directly part of your basic banking platform, it is very important that your heart be flexible enough to integrate with a partner that delivers AI capabilities. This is especially true when it comes to building and modifying customer visits, and implementing AI for things like KYC, anti-money tools and business analysis. As we look to 2021, it will be crucial for banks to adopt new technology – such as AI – to keep up.