Intelligent Banking and the Future of Finance: Forbes’ Insights on Digital Transformation
- Banks that do not evolve will likely fail
- Job One is to keep up with the currect digital transformation
- "Intelligent interactions" represent the future of banking
Derek White, the CEO of Galileo, a fintech pioneer with over 20 years of experience modernizing financial services globally, recently contributed his thoughts via Forbes regarding how to "future-proof" banking -- primarily via a transition from digital to intelligent, or AI.
The banking industry is undergoing a major digital transformation, he notes, with traditional banks losing ground to digital-first competitors. The last four years, in fact, have seen digital banks and fintechs increase their share of new checking accounts from 36% to 47%.
To keep up, traditional banks must accelerate their digital evolution. The first step is maximizing "Do It Yourself" (DIY) banking, where customers can self-manage their finances without staff assistance. Once DIY is optimized, banks should focus on making interactions "intelligent" - using data to personalize the experience and streamline processes.
Mr. White proposes focus on three critical areas, summarized below:
- Modernize the Core Infrastructure: Legacy systems are the biggest hurdle, trapping valuable data and impeding digital innovation. Incremental upgrades through cloud-based and API-first technologies can help banks transition gradually.
- Create a Culture of Digital-First Innovation: Banks need to shift their mindset, building cross-functional teams, incentivizing innovation, and investing in ongoing training to embrace digital banking upgrades.
- Partner for Strategic Growth: Banks can work with industry experts and fintech partners to efficiently and securely accelerate change through a modern, API-centric approach.
The Future of Banking Starts with the Technology of Today
The goal is to move beyond just offering online banking to reimagining how financial services are delivered. This involves transforming interactions into "intelligent interactions" that use data to personalize the experience, streamline processes, and foster trust.
Ultimately, the gauge of success in banking is evolving. Forward-thinking banks now view rich customer interactions as a key metric, as improving these interactions pays dividends in loyalty and revenue.
As Galileo's latest research underscores, 60% of consumers prefer digital-first interactions. For banks, the imperative is clear: adapt now or risk falling significantly behind your digital-native competitors.
Currently, banks of all sizes have the ability to update their current technology stacks with the latest innovations -- including AI and machine learning. These technologies are readily available from fintech vendors and their service bureaus. These technologies have already streamlined legacy processes, including check processing where banks are seeing over 99% read and accuracy rates -- effectively streamlining check payments. This also enables banks to gather critical data on check transactions so business intelligence systems can customize the banking experience for the customer.
A bank's future starts now by implementing the technologies available to achieve customer satisfaction.