Keeping up with the future of finance

The financial service industry, specifically in banking, has been subject to immense change over the past few decades. The adoption of technological advances in banking, especially with data analytics and processing power, has changed how we do business and make decisions.

While banks are constantly looking for ways to keep up with these new developments and advancements, it can be hard for them to find their footing in this rapidly changing landscape. However, although these changes may come off as overwhelming for many banks, they should actually be seen as potential growth opportunities for the business. These opportunities can be the make or break for businesses to stand out.

An excellent place to start would be focusing on a customer-centric approach. Research by Deloitte discovered that customers identified their main banks as giving them far less in terms of an emotional benefit or connection than their preferred brands such as Apple and Google, with up to a 24 per cent discrepancy in areas covering quality, worth, and client understanding.

Furthermore, Deloitte’s study also highlighted that consumers’ top priorities include, having solid online information security, having the option to manage financial exchanges online and being able to solve issues in real-time.

Financial businesses should use a platform to manage their data to keep up with the technological advancements they are currently, or gradually planning on, implementing. The chosen data platform must support multiple data sources to ensure appropriate and time-bound services that meet customer demands.

Data creates opportunities
Having easy access to data eases the decision-making process concerning expansion plans, what markets should a growing business look into, and so on. Moreover, the data helps create a strong outline for an effective business plan, including potential risks and management strategies.

More honed business analysis gathered from transaction patterns reveals new potential clients and markets that couldn’t be identified before. Monitoring customer interactions efficiently ensures prevention from potential threats as you go.

Having easy access to relevant data can help a business identify elements such as which client or market offers the best growth potential or how the company or the client can improve their credit score. Implementing a good data strategy allows you to monitor your data and track relevant information, resulting in a 40 per cent fraud prevention

Consumers: Banking, technology, personalisation
For the success of a business, maintaining customer loyalty is as important as building the consumer base. According to research by Accenture, more and more consumers are looking for financial service providers available digitally

Banks have turned to incorporate a unique digital user experience, which further builds brand and customer loyalty. This involves conveying customised, efficient, and low friction interactions while limiting cyber threats and reducing expenses.

Rabobank in the Netherlands, with a customer base of over 8.3 million people globally, identified the importance of data analytics. They recognised how they could potentially use their data to elevate their performance as a service provider, hence offering a better customer experience. They adopted our cloud platform to carry out real-time data analytics to produce actionable insights quickly.

Rabobank provided better management services to their customers by incorporating our data platform based on their requirements. Moreover, by analysing customer patterns regarding loan repayments, the bank could recommend personalised solutions for users to assist their finance goals.

Faster processes with AI
The demand for Artificial Intelligence (AI) within banking is quickly rising compared to traditional methods. Having technological support can help generate data and analyse that information in a structured manner, making the process much faster than doing it manually.

Other than recognising key event patterns and raising important alerts based on actionable intelligence and predictive insights, the ability to track and stream processes in real-time prevents online risks by enforcing precautionary measures before any mishaps.

Empowering your digital journey
Research by International Data Corporation (IDC) highlights that by 2023, 85 per cent of APEJ banks within the top two tiers will adopt plans around integrating multi-cloud or hybrid cloud technologies.

A cloud adoption strategy is a new approach to meeting customer demands while maintaining workplace structure. Using generated data to its full potential helps businesses maintain customer interest by giving them personalised services, keeping them engaged and helping them stand out from other companies, attracting more potential customers.

Ahmad Shakora is the regional vice president of Cloudera, Middle East, Turkey & Africa