Innovation into the Banking System
Digital innovation has helped evolve the financial services sector, but the global pandemic has prompted an overhaul in the role of advanced technology and digital services as traditional bricks and mortar business models lose relevance and consumers radically adjust their banking behaviour. To remain competitive in this new digital reality, it is important that senior leadership recognise the part technology has to play in adapting to the banking world that Covid-19 has created says Santiago Jimenez Barrull. These emerging financial services and products, powered by emerging technologies such as artificial intelligence (AI), blockchain and machine learning, have played a defining role in the banking sector for the past few years, but in order to remain relevant in the uncertain environment instigated by a global pandemic, their function in banking systems is more evident than ever. These tools are the key to banks being able to streamline services, redefine business models and focus on flexibility. In order to implement these new advanced technologies quickly and comprehensively many traditional banks have looked to partnerships with fintech companies to increase capabilities. Products such as digital documentation and API connectivity have become crucial, with fintechs leading the way in their digital offerings. “Traditional financial services need to be smart and take bold risks as they navigate these tricky economic times,” says Santiago Jimenez Barrull, President at Maat International Group. “Collaboration is going to be critical, as banks transform their value offering to become more critical to the lives of their customers.” Partnerships with fintechs will allow increased customer reach, bundled services, improved support tools and overall customer experience. It’s a win-win situation for both parties. Vulnerable start-ups get access to the funds and reputation associated with traditional banks in a particularly uncertain market, while banks benefit from the deep tech expertise brought to the table by cutting edge start-ups at a time when digital operations are everything. Covid-19 has radically changed consumer behaviour, and the social distancing requirements put in place to reduce the spread of the pandemic have prompted a move towards technology which promotes remote financial transactions. There is little doubt that the pandemic has created fundamental challenges for banking CEOs and leaders who currently face an unprecedented economic landscape. Business norms are a thing of the past. This new way of distanced living has had an obvious effect on customer behaviour, with the majority of people unwilling and unable to carry out their banking in person.