| 54 | The banking sector is at an inflection point in its journey. Emerging technologies have changed customer expectations and the competitive landscape forever, necessitating deep transformation within the sector.The bank of the future is likely to be vastly different from the bank of today.What will the bank of 20XX look like? And how will future banking strategies balance customer, product, and technology to deliver a superlative banking experience? Nanda Kumar, CEO and Founder of SunTec Business Solutions takes a look at the future. | 55 | The world is changing at an unprecedented pace, fueled in no small part by the rapid evolution of technology. The banking sector too is undergoing a period of fundamental transformation with the emergence of decentralized models, CBDCs, and banking-as-a-platform. But becoming a bank that will continue to thrive and grow in the future will require more than just a digital foundation. It will necessitate a deep transformation in the way the bank functions, strategizes, and implements banking frameworks that meet the requirements of the future customer and market. By when this transformation will be complete depends on the timelines banks set for themselves – 20XX. Done right, the future of banking can be a USD 20 trillion opportunity with new revenue streams, higher margins, and better valuations. All good for business! Technology and Customers to Shape the Bank of 20XX The bank of 20XX will be impacted and shaped by a rapidly changing technology landscape. We are already witnessing unprecedented acceleration in technology advancement and this will progress further with time. It is only a matter of time before hype cycles and predicitions stop playing out like they do today in the face of tremendous scientific evolution and application. The sector will also be shaped is the entry of Gen Alpha into the formal banking economy. These are digital natives, who have grown up in a connected world. They are fiercely independent, and adaptive learners who expect any business they engage with to be agile and innovative. The bank of 20XX cannot remain product centric or even customer centric. They must operate with a focus on delivering the best possible outcomes for all stakeholders, including customers, Future-proofing the bank of tomorrow SPECIAL FEATURE: SUNTEC shareholders, and the bank itself. Agility, scalability, and resilience in the face of disruption will be key to success in the future. 6 Is to Describe the Bank of 20XX What will the bank 20XX be like? We believe 6 Is will best describe it – Individual The most important factor driving banking transformation is the customer, both retail and corporate. Customers are no longer content with mass offers. And the customers of the future will want products and services catered to their unique requirements. They will want convenience, options that match their financial situation, and will want to access banking services anywhere, anytime. Banks of 20XX have to be agile enough to cater to a segment of one with hyperpersonalized products and services that meet customers where they are at in their financial journey. Invisible Banking in 20XX will be invisible and deeply embedded into the customer’s life, driving value exchange through existing resources and tools. Banking is already moving in this direction. Mercedez Benz’s partnership with Mastercard to launch fingerprint-based payments is an example. Customers can use a fingerprint sensor in their car to make digital payments across more than 3,600 service stations in Germany. Such embedded systems powered by strategic Nanda Kumar CEO and Founder of SunTec Business Solutions partnerships will become the norm in the future, making banks invisible and entrenched in the customer’s daily routine. Intuitive This works on two levels. First, intuitive means an interface or a system that is easy to understand and use by all generations – the young digital native Gen Alpha as well as the older geenrations. And second, it means the ability to take contextual decisions and recommendations. For decades, banking processes remained complex, requiring customers to make significant effort to access and operate their accounts. Generation Alpha, or the banking customer of the future is not likely to stick with any effort-intensive service. They are also a highly empathetic generation and will expect their service providers including banking to show empathy for their customers. Banks of the future will have to make the process simple, and intuitive for customers across generations. The ability to transact and operate bank accounts with the touch of a finger, or even a biometric scan is important for younger customers. But older generations still want the comfort of personal communication and brick and mortar branches. A seamless, unified experience across channels will be critical in the future. Banks are already building senior friendly interfaces even as they accelerate their digital journeys, for example the BBVA is offering a dark mode option on their applications to reduce screen brightness and reduce eye fatigue. At the same time, banks will need to understand their customer better to offer meaningful, personalized services in near real time to meet their requirements. Immersive An immersive, near real time, banking experience is important for connecting and engaging with young customers. They want to be able to access banking services not just on the website but also while engaged in social interactions, or gaming. Immersive banking has the potential to generate USD 1.6 trillion by 2030, and banks are already moving quickly to set up embedded and immersive services. For example, JP Morgan Chase and HSBC have already set up virtual shops. The United Bank of India has launched a 3D Virtual Lounge that can provide product information and videos and allow customers to check account information. Cryptocurrencies and NFTs are already in use and banks of 20XX must be well placed to leverage these. Integrated The current banking landscape with its product-centric approach is disjointed and hampered, either in full or part, by legacy infrastructure. Additionally, banks have to comply with varying regulations across regions and very few banking apps actually interact with products and services that
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