Digital transformation and innovation in Retail Banking

 

 

Retail banking is in a state of constant innovation and digitization. In this competitive environment, KYC process & customer experience is fundamental in getting to the position of leader in the market.

The Fleming. team sat down with Steve Dorward (Lead Architect, Lloyds Banking Group, UK) Federico Napoli (Head of Marketing, Products and UX, buddybank, Italy), Robert Wright (CEO, Raiffeisen Bank, Kosovo), Priit Poldoja (Founder and Chairman, Inbank, Estonia), Jesus Freire Costas (Banking and Financial Market – Technical Leader, IBM, Spain) and Gianluca Bisognani (Co-General Manager & Deputy CEO, Banca Sella, Italy) to discuss sustaining customer loyalty, adaptation to new digital breakthroughs and the future of banking.

Gain all the necessary knowledge from case studies, presentations and interactive sessions from leading banks in the EU and the world at the 16th Annual Retail Banking Forum.

  • Steve Dorward
  • Lead Architect
  • Lloyds Banking Group, United Kingdom

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

Trust is key. Gimmicks are one thing but if your bank can be a trusted and never fails to deliver you won't change.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

We have a new area called Group Transformation which I am part of. This is focused on transforming the entire banking group.

How do you see the future of banking in terms of digital products?

We have a line of business called strategic hedging, where we look at API, automation and how it could help with digital banking.

  • Federico Napoli
  • Head of Marketing, Products and UX
  • buddybank, Italy

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

Constantly understand changing consumer behaviors to shift/adapt your value proposition. Nowadays the “Competitive advantage” is like an ice cube.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

Once again starting from people. Explore the world around you, breathe other people’s lives; try to understand how consumer insights are changing. Technology is important but is always an enabler of individual attitudes, desires and aspirations.

How do you see the future of banking in terms of digital products?

Strong digital processes able to provide a perfect self-service customer experience but than a human touch to provide a tailored warm experience.

  • Robert Wright
  • CEO
  • Raiffeisen Bank, Kosovo

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

In many ways it is the same as it has always been – understanding their needs, providing products and services that meet these needs and delivering market leading customer service. What is different is that today customers expect our understanding, our products and our customer service standards to be more specific, relevant and appropriate than ever before given the customer information and technology that is now available to the banks.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

We are adopting agile methodology to deliver appropriate digital propositions in all segments with the attitude that we can on occasions fail, but must fail quickly and move on.

How do you see the future of banking in terms of digital products?

I believe there will always be a place for more traditional banking, albeit at a cost to the customer, and most banks will be banks with a digital proposition rather than purely digital.

  • Priit Poldoja
  • Founder and Chairman
  • Inbank, Estonia

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

As a consumer finance-focused digital bank, Inbank is concentrated on building the most convenient customer process for getting a loan. Besides having a convenient process, it is critical to be present where and when a customer might need financing.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

We believe that banking and especially small financing is increasingly moving outside banks. Our offering is working through multiple retail partners (online and offline) where we embed the financing (as much as possible given regulations) into commerce.

How do you see the future of banking in terms of digital products?

It is not enough for banks to digitze their offerings and build new channels like mobile. With new digital platforms and online retailers taking market share, banks need to find a way to integrate their offerings into these new commercial hubs.

  • Jesus Freire Costas
  • Banking and financial Market – Technical Leader
  • IBM, Spain

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

A superb customer experience completely focused on serving customer life events; full transparency; continuous and very accurate advisory.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

IBM has been the reference partner for banks through decades of providing technology and solutions to support the evolution and modernization of this industry. Digitization is a gradual process that has been transforming the banking strategy and operating model for years, now disrupted and speed up by the convergence of new technologies and architectural styles, regulations and new competitors. Cloud delivery models, data centric architectures, advanced analytics and A.I./Cognitive, cyber-security, blockchain and business platforms are just a few examples of how IBM is supporting the industry in this digitization process.

How do you see the future of banking in terms of digital products?

Several directions: traditional products enhanced by digitization (e.g. adaptive leasing based on IoT and blockchain), new types of products very specific for the digital space (e.g. crowd lending, peer-to-peer, etc) and cross-industry hybrid products (e.g. bundling financial services with other industries' products through business platforms which makes the banking products much closer to customer life events). A.I. will be a key element in the full digital product lifecycle, from inception and design to manufacturing and servicing.

  • Gianluca Bisognani
  • Co-General Manager & Deputy CEO
  • Banca Sella, Italy

What do you think is the main factor in sustaining customer loyalty in this competitive environment?

Loyalty increases with the trust and satisfaction with the service that customer receives. Therefore structured monitoring of the customer journey and immediate action on any source of potential improvement in customer service become key success factors.

How is your company transforming and adapting to new digital breakthroughs in the banking business?

Banca Sella is sincerely obsessed with its customer satisfaction and committed to contribute to the birth of a new financial eco-system with an open banking approach, which will ensure long-term success to the company and its stakeholders.

How do you see the future of banking in terms of digital products?

Products are more and more commodities, as such, their value will converge to their marginal cost, i.e. increasing the push for greater market concentration to increase volumes with very low profitability. The real value will stay in services, or better, in advisory, to retail and corporate customers. Nobody is willing to pay for bad advice from a doctor or a lawyer, and so it will be for banking advisory. Quality will make the difference.