Banks leverage technology to maximise reach: CII-PwC study. Technology is considered as a critical pillar to meet the strategic objectives of the business by sixty three percent (63%) of banking survey respondents. Disruptive technologies such as SMAC (Social, Mobile, Analytics and Cloud) are carving a new path of innovation in banking functions and strategy. Sixty three percent (63%) of banking survey respondents confirm that their bank used social media campaigns quite frequently to get leads. Fifty percent (50%) said they were using social media aggregators to help interpret unstructured data. It has become very critical for CIOs to have effective analytics tools and technologies in place, stemming from data mining and predictive analytics. The findings are a part of the CII-PwC survey “Connecting the dots: Wiring business, technology and operations” which was launched at the CII Banking Technology Summit here today. Technology is considered as a critical pillar to meet the strategic objectives of the business by sixty three percent (63%) of banking survey respondents. Thirty eight percent (38%) of the banks felt that technology has played an important role in bringing improvements in operational efficiency. Fifty two percent (52%) expects the investment in technology to be primarily around regular maintenance and improvements in infrastructure. Debdas Sen, leader Tech Consulting PwC India said, “Indian banks have grown accustomed to using technology. However, we have now reached a point where technology needs to be used as a value lever to traverse a fast-paced growth trajectory. Innovation to help develop the product, process and service is the new mantra. Increased customer awareness has mandated banks to align their strategies to provide an enhanced customer experience. The advent of social media, changing regulatory environments and other macro-economic factors are further strengthening the strategic role that technology plays in the industry.” On the occasion, Arun Jain, Chairman - CII BANKing TECH Summit 2014 & Executive Chairman Polaris Financial Technology Ltd said, “ The ability of technology to bring together various aspects of banking has added phenomenal value to every day banking transactions for customers . In today’s challenging times, when broadening reach and access to banking is the key to drive growth in business, innovations in technology in all likelihood will change the equation between cost and access. As the CII-PwC report clearly mentions, measures like data aggregation, customer relationship management and financial inclusion initiatives is essential to take banking to the next level of growth.” Banks will invest in platforms such as integrated payment hubs which supplement existing core banking systems and provide a consolidated view across all payment channels. Big data use in payments or unstructured areas like social media, customer care and internal communications will mature. The sector is likely to witness increased use of mobile specific features such as geo location, camera or scanning and voice identification. Banks in the small to medium space will start looking for entire core banking platforms as a service, while more established banks increase cloud adoption in non-core areas such as HR. There is a lot of opportunity in the social media universe to target customers, garner their interest and cater to their specific requirements. Considering the huge volume of data that is actually available across these sites, there is a need to segregate and filter it all to gain an insight into customer behaviour trends and preferences. The use of smart phones and tablets has also helped increase the traffic on mobile banking transactions. However, there still remains scope for growth. The Indian banking sector is subject to frequent modifications in risk and regulatory requirements. A few are currently doing the rounds and It is essential for banks to understand the implications regulations such as foreign account tax compliance act (FATCA) and anti money laundering (AML) on their operations and take the necessary measures to mitigate risk. The automated data flow (ADF) mandate by the RBI was initiated to strengthen the regulatory reporting model. Sixty three percent (63%) said that their bank was fully compliant with the ADF requirement and had their implementation plans in place. Challenges: Providing an enhanced customer experience is a key focus area for banks, but there are challenges which remain to be dealt with: Lack of consistent, yet personalised services across multiple channels Lack of smart customer-segmentation to increase the cross-selling and up-selling abilities Inability to increase the wallet share of existing customers Optimising the initial stages of customer interaction Lack of a robust mechanism for customer grievance and query resolution Inadequate training to staff on how to provide a rich holistic experience Low focus on providing the service experience to smaller retail clients Data aggregation and mining to detect frauds
Posted on: Thu, 06 Mar 2014 06:19:42 +0000
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