Tag: retail banking

IR6

Exciting Retail Banking Trends to Gear up for in 2018

The entry of new players, such as Fintech, and proliferation of technology continues to disrupt the retail banking industry. Customers are increasingly adopting digital products and services, which makes augmenting customer experiences the need of the hour. In the pursuit of quicker processes and innovative approaches, traditional retail banking companies are enthusiastically investing in digital transformation and FinTech collaboration. Furthermore, emerging technologies such as blockchain, artificial intelligence, and Digital IDs have taken the front seat with banking sector companies under pressure to boost revenues and reduce costs, while delivering better customer experience. For the global banking sector, 2018 could be a pivotal year in accelerating the transformation into more strategically growing, technologically modern, and operationally agile institutions. This could enable banking sector companies to maintain market leadership in a rapidly evolving ecosystem.SE_Demo2

Here are the top retail banking trends that you need to watch out for in 2018:

Enhanced customer experience

Though retail banking companies have been talking about ‘customer-centricity’ and ‘improving the customer experience’ for decades, most organizations face difficulty in breaking down product silos or leveraging internal data to deliver a contextual digital experience. Retail banking companies can attain long-term sustainable growth only with a radical departure from a sales- and product-obsessed mindset to one of genuine customer centricity, and further rationalization of strategies to target the right markets, customer segments, and solutions. In 2018, we can expect more retail banking companies to emphasize on customer experience and creating better customer journey.

Expanding the use of data and advanced analytics

This year, forward-looking retail banking firms will apply advanced analytics and AI to increase automation, reduce costs,  improve personalization, enhance the customer experience, and assist with compliance. Banking sector companies will embrace more automation and AI-powered capabilities to provide a better customer experience across digital channels and to empower employees with the tools and knowledge they need to improve their performance.

Self-service touchpoints

Retail banking firms and their customers will see less of each other in 2018. Instead, an increasingly digital customer base will use self-service touchpoints as the first point of contact, only reaching out to contact-center agents or branches for the most complex engagements. This movement of transactional interactions to digital channels means that branch and contact-center interactions will become crucial than ever in building human relationships with customers.

Growth in fintech partnerships

Earlier, banking companies regarded fintech firms as a threat owing to the growing inclination of customers toward fintech. However, forward-thinking retail banking companies are slowly realizing that collaboration with fintech companies is the way forward. By joining hands with fintech firms, banking sector companies can leverage the benefits of advanced technologies used in fintech. This will help garner and retain more customers in the long run. Also, by collaborating with retail banking companies, fintech players will get enough capital funding for their operations. Hence, this would result in a win-win situation for both the parties.

Blockchain technology

Today, blockchain is no longer merely about bitcoin or the broader category of cryptocurrency; it’s an exploded view of the underlying technology. Blockchain technology will be used more extensively in the banking sector in 2018. This technology will eventually transform the way we transact. Retail banking companies can use distributed ledgers for the sharing of contracts, documents, data and the processing of certain payments.


To know more about the retail banking trends in 2018

Get More Info


Related Posts

Laptop with pen and spiral notebook on desk.

What’s in Store for the Future of Retail Supply Chain?

Professionals working or managing retail supply chain can tell you just how challenging it can become to optimize and bring efficiency to the supply chain. The complications that exist in the retail supply chain are far complicated than the supply chain in any other industry. But the advent of digital technology and other innovations have brought about landmark changes in the way retail supply chain operates. Majority of the big names in the retail industry are jumping on the bandwagon to embrace digital technologies that can assist theirSE_Demo2 supply chain. For instance, Google and Walmart have joined forces to offer thousands of Walmart items on its voice-controlled Google Assistant platform. So, what does the future hold for the retail supply chain?

The Future of Retail Supply Chain

Home Try-ons

One of the persistent problem troubling online retailers is the sheer number of returns and their expenditure on reverse logistics. The cost of reverse logistics becomes significantly high when it comes to fashion retailers who encounter high amount of returns due to fit, color, size, design issues. Recent reports have suggested that online fashion retailers in the US report a return rate between 20%-40% costing them millions of dollar. Retailers are looking at home try-one as a fix to this problem, where customers try the fashion item and return it instantly if any issues persist. For instance, Warby Parker offered its consumers options to try up to 5 frames online before making a purchase. This home try-on option enabled the company to offer its product at a price range of below $100.

Voice-based Orders and Other Innovations

Although voice-based order is in its nascent stage, the adoption rate looks to increase at an unprecedented rate. Currently, voice search on Google already accounts for 20% of the total search volume. Machine learning, natural-language question answering, and virtual personal assistants are set to take over the future in terms of customer demand fulfillment. Google Assistant and Amazon Alexa already have product lines that are highly responsive to voice commands. On the other hand, Amazon has made ordering easier with its new product named Amazon Dash, which automatically orders items that are out of stock with just a push of a button.

Solving the Last-mile Problem

The last-mile delivery problem has been troubling retailers for a long time now. The future, however, looks set to tackle such retail supply chain problems with multiple solutions. One solution that has received much appreciation from the retail industry is drones. Drones can solve the last-mile connectivity problem with ease and also allows the shipper to operate it remotely or even autonomously. Also, some retailers have looked upon uberization to solve such problems. Based on the principles of sharing economy, retailers are sharing the delivery vehicle in order to optimize the delivery and reduce cost base for the company. Additionally, retailers have also implemented crowdsourcing programs by rewarding customers to deliver the parcel on the way to other customers.

For more information on future of retail supply chain, last-mile problem, logistical innovation, and e-commerce: Get More Info

Related Articles:

IR24

Innovations in Procurement Process that can Reduce Spends for Banking Services

The banking sector is still affected by the great depression witnessed a decade back. Numerous procurement cost including real estate, ATM maintenance, transaction and card processing services, collections, risk management, security services, and in-branch marketing are burdening the banks bringing down their profitability. To remain competitive and sustain in the market banks and financial institutions are looking for various cost containment strategies. The banking sector is looking for innovative ways in their procurement process to control the procurement costs.

Request Free SampleSupplier Cost BreakupSource: SpendEdge Procurement Research Report – Global Banking Services Category

Pooling Resources for Cost Containment

The banks and financial service providers have come up with innovative solutions to pooling of resources for a particular line of business, allocating a dedicated entity to manage the processing. Pooling of resources to share infrastructure and operational costs across the organizations can lead to massive cost savings and at the same time increase the investment efficiency by making capital-intensive projects more viable.

Vendor Consolidation or Supplier Rationalization

Vendor consolidation is one of the procurement strategy used by banking and financial services industry to achieve cost savings. Banks look forward to reducing the number vendors across geographies and business units to focus on selecting preferred vendor per spend category. Implementing such vendor partnerships allow banks to increase their operational efficiency and productivity and thereby save valuable time and money. Additionally, such procurement cost reduction strategies eliminate the need for lengthy training procedures for the staff and also ensure compliance with the procurement process.

Investment in Technology

The financial industry has always been resource intensive and over-reliant on human expertise. Although the majority of the banks invest heavily in ERP systems, the usage of technology is still limited mostly due to lack of people who understand such technology. Blockchain technology is the next big thing in the financial services industry which can eliminate lengthy transaction processes along with costly third-party verification. Such technologies can rapidly increase the efficiency of the procurement process within the financial industry.

Adoption Of Public Cloud Services for Digital Banking

Banking service providers are turning towards applications and storage space available in the public cloud eliminating the need to invest in dedicated hardware and software resources. Opting for various engagement models such as SaaS, PaaS, and IaaS, banks can digitize their services without having to maintain data centers.

Read more about the procurement process in the banking services market along with pricing strategies, supply market landscape, pricing trends, negotiation strategies, procurement cost reduction strategies, and procurement insights in SpendEdge’s upcoming report on the global banking services market.

CTA view full report

Related Articles:

Answers to the questions

Next Generation Banking Services to Drive Customer Experience

There have hardly been any landmark changes in the banking services sector since the first bank ever was established back in 1397. Although banks have started to incorporate digital technologies to extend services regarding online banking, SMS banking, and internet banking, the modern day banks are yet to witness next generation banking services. This being said, the next generation banking services should be able to rapidly transform the way banking services are delivered which positively influences the customer experience.SE_Demo2

Blockchain Technology
Blockchain is hyped to potentially disrupt not only the banking sector but also the financial industry as a whole. Numerous players in the traditional banking sector are already looking to incorporate blockchain technology in their banking services. The blockchain technology offers banks to speed up the process of banking transfer securely without the help of any third party. So how does this benefit transform the service side of banking? Well, for the customers it would mean carrying out transactions smoothly, sharing relevant information, quicker and simpler asset exchange, and gaining real-time updates with high accuracy.

Process Automation
Automation in banking can increase productivity by streamlining the end to end process making it quicker and easier. For instance, an average mortgage application goes through multiple manual handoffs before completion. With a simple solution of using digital signatures, a substantial amount of time and effort could be saved to hasten the process making it more user-friendly. Additionally, the saved time could be utilized in improving products and services which have a positive impact on customer experience.

New Payment Mechanisms
Although practiced on a small scale, we see the rise in popularity of mobile NFC based payments. Apple Pay and SAMSUNG Pay are pioneers in this field allow bank details and payment card to be added to their payment system enabling the user to make secure payments. For the customers, though they can wave goodbye to the days when they had to remember card number, card details, pin code, and security number, as all it would require is one fingerprint or just the face.

CRM Solutions
Big players in the banking industry have already started to use CRM solutions to improve their service delivery. Developers of the CRM tools are innovating to incorporate real-time information to understand the customer and serve them instantly to increase their experience. The next level CRM solutions can effectively provide customized bundles to the customers, offer them the best deals, or sanctions loans and mortgages instantly.

While many emerging technologies may seem to disrupt the banking industry, the players in this industry should embrace the technology to transform the way services are currently delivered. As a result, it can drive the customer experience positively and thereby boost company profitability.

For more information on the future of banking services industry:

Get More Info

Related Articles:

3

Best Procurement Practices in the Retail Industry: Managing Pennies to Save the Dollar

The retail sector is a fiercely competitive industry which operates on a tight margin. Procurement teams need to be on the top of their game by creating a seamless value-added experience for the customer. In the retail industry, sourcing and purchasing account for almost 80% of the total cost. Marginal savings in this cost could result in superior ROI. As a result, most teams are focusing on maximizing ROI for their business by optimizing their sourcing and supply chain practices.

Here are some of the procurement best practices for the retail industry:

Segmenting the Spends

Categorizing the organization’s spends is one of the fundamental concepts in sourcing management. Spends should be segmented as SE2required by the business into logical groups of similar items or services from suppliers. Spend categories differ vastly within each organization in the retail industry due to its highly multi-variant nature. With the increasing complexity of the spend category and supply market, the need for sophisticated segmentation models has increased. Consequently, procurement managers need to consider supplier performance, sourcing type and nature of demand, supplier risk, demand volume and variability, and regulations to create a proper spend segmentation.

Evolution of Managed Services

The retail industry is relying on Managed Service Providers (MSP) as an alternative to on-demand outsourcing to improve operations and cut down on the costs. MSPs with expertise in the retail industry can evaluate a supplier based on pre-defined parameters such as compliance of suppliers against assigned roles and responsibilities, utilization of enterprise management tools, and their ability to efficiently deploy service models and define standards for categories.

Advanced Sourcing

Advanced sourcing enables both buyers and suppliers to work together to drive costs out of the system instead of squeezing in margins. Advanced sourcing helps control indirect spend procurement such as merchandise display, transportation and logistics, store facilities services and materials, and corporate service. Advanced sourcing coupled with spend aggregation, supplier collaboration, stakeholder and business alignment, and staff efficiency and innovation can deliver impressive results in identifying and eliminating avoidable costs.

Retailers are highly reliant on procurement best practices to get rid of unwanted costs and squeeze more profits to add to the overall revenue. They are always on the lookout for maximizing returns on investment by striking the right balance between deploying innovation versus optimizing the value they deliver.

Want to know more the best procurement practices for the retail industry?

SE2

 

Related Articles:

IR13

Retail Banking – Big Data, Whether to Debit or Credit?

Many might think that the term, Big Data, is overhyped. But in layman terms, it is just large volumes of structured or unstructured data, gathered by a business on a day to day basis, from a variety of sources – external and internal, analyzed to derive actionable insights that lead the management to take important strategic decisions. Since time immemorial, organizations have leveraged historical data for analysis purposes, but there’s a certain freshness that big data analytics brings to the table. It helps unlock potential avenues to help organizations achieve their objectives, improve performance and drive innovation.

On the other hand, retail banking or consumer banking as it is popularly known, is the provision of services by a bank to individual consumers instead of corporate giants. Banking organizations aim at becoming a one stop shop for a wide array of financial services such as debit/credit cards, loans and deposits, etc.  for individual clients. Banks continuously strive to add value to their product offerings in order to provide a 360-degree banking experience to their customers.

And how will big data help retail banking organizations achieve their goals and objectives, you ask?

Here’s why.

The retail banking industry is at a stage where, post the credit and financial crisis, it must integrate analytics and big data in order to devise marketing strategies that will help the industry grow. This will enable the retail banking firms to not only achieve their objectives but also create a positive customer experience, reduce customer attrition levels and create a sustainable competitive advantage.

Big Data – Creditworthy much?

Retail banking firms can leverage big data analytics and customer analytics to improve the efficacy and profitability of their interactions with the customer. These insights can be used to ascertain which mediums consumers use to interact with banks and what drives the purchase of certain services. Data such as transaction records, mobile banking and website traffic can be utilized for analytic purposes and derive deep meaningful and actionable insights about an individual, as retail banks have access to transaction level data of customers. Additionally, retail banking companies can make use of pricing analytics to identify feasible pricing options, pacts and incentives to which customers respond in a favorable manner. They can use analytics and big data solutions to drive and improve their ROI, make leading-edge data and insights actionable.

Should retail banking firms, debit or credit ‘big data’ in their balance sheet, you ask?

Credit it, we say.

How SpendEdge Will Help Increase Your Credit Score    

There is a constant need for innovation in terms of customer engagement in the BFSI industry, which also means increased operational costs and reduced profit margins. At SpendEdge, our team of experts have a deep understanding of the key challenges faced by procurement function in the BFSI sector and bring to you detailed solutions that focus on providing necessary insights to achieve procurement excellence beyond just cost savings.

For a better understanding on use of big data analytics and data analytics tools for retail banking or consumer banking

get in touch

Request free proposal