If we asked some of your most valuable customers to describe their banking experience, what would they say? Would they say they are satisfied? Extremely happy? Frustrated? The question is not rhetorical as banks across the world face increasing customer demands for personalized banking experiences and transactions tailored to their needs.
Relatively stable for decades, the banking industry in now on the verge of sweeping change. And banks that fail to give customers anything less than their desired experience may watch them take flight. Enter: Connected Banking, which allows banks to play a wider role in a customer’s financial life while offering a more personalized experience and simplified way to manage their finances.
Connected banking emulates non-bank players and FinTechs that already employ cloud-based solutions and innovative models that enable agility, lower cost-to-income ratio, and the ability to offer customers more competitive products. We know that nearly two-thirds of banking customers, globally, currently use FinTech products. So, the race is on for traditional banking organizations to innovate at the speed of FinTechs. And that’s why it is so critical to understand and leverage both the Cloud and APIs, which empower third-party developers to build applications and services that allow banks to swiftly transform through open and real-time customer engagement.
There’s no doubt that the ability to share data (historically held by banks) will improve consumers’ banking experience. And, when securely shared—or published openly, using open APIs—data can be used to build useful applications and resources to help people find what they need. Customers can look for a mortgage more easily, banks can find customers matched to a new product, and businesses can share data with their accountants. This, in turn, will improve efficiency and stimulate innovation.
With an eye on the future, successful financial organizations will rethink their customer relationships and revenue models to deliver compelling Connected Banking propositions that attract and retain profitable customers.