Today, a bank’s success is defined by adaptability, digital know-how and customer interaction
The pressure is mounting. Traditional financial institutions find themselves in a situation where the speed of new requirements and external shocks from several sides are increasing.
Complex regulations need to be implemented in the company in such a way that all areas are compliant with them, while operations continue to run efficiently and stably. The key to this lies in an agile, adaptable organization. New fintech and digital banks are shaping expectations with individual solutions and a fully digital customer experience, not limited among the youngest target groups.
Add to this the ongoing challenge of digital transformation. Leveraging technologies to truly understand customer needs and create customer interaction beyond the online banking portal will determine the existence of banks. In parallel, financial institutions will play an essential role in the transformation to sustainable business. Thus, one transformation becomes two – we call this TwinTransformation.
The question arises: how can your business model as a bank or fintech be expanded in a way that it remains attractive to many customer groups in the future?
RegTech solutions can save banks up to 50% of the costs incurred by new regulations. The market for this is growing massively.
About 70% of CEOs of financial services companies worldwide see the speed of new technologies as well as changing customer behavior as a threat to their company’s growth.
Over two-thirds of current bank customers would change their bank in the future for another with better technology adoption.
Opportunities through new technologies
Digitization offers banks and fintechs the opportunity to transform their business, operate more efficiently, reach new customers, and offer innovative products and services. However, it also requires adaptability, investment in technology and a clear strategy to make the most of these opportunities:
Improved customer experience and 24/7 access
Digitization makes it possible to offer customers a seamless and personalized experience. Through online platforms, mobile apps and digital interfaces, customers can access their financial services around the clock and conveniently conduct their banking transactions from anywhere.
Stronger customer loyalty and personalized offers
Digitization allows more data about customers to be collected and analyzed. This enables better knowledge of customer preferences, needs and behaviors. On this basis, personalized offers and tailored solutions can be developed beyond classic banking products to strengthen customer loyalty and build long-term customer relationships.
Development of new innovative products
Digitization opens up opportunities to develop innovative financial products and services. By using technologies such as Artificial Intelligence (AI), blockchain and Big Data analytics, for example, tailored investment advice, alternative credit models or secure digital payment solutions can be offered.
Expanded market access beyond geographical borders
Digitization makes it easy to roll out business models across geographical borders. Online platforms and mobile apps make it possible to reach customers worldwide and offer them financial services regardless of location.
Potential for cooperation and partnerships
Digitization creates more opportunities to enter into partnerships and collaborate. Traditional banks can leverage the technological know-how and innovative power of fintechs to improve their digital offerings. At the same time, fintechs can benefit from the established infrastructure, customer base and regulatory experience of traditional banks.
More efficient processes and cost savings
Automation, Robotic Process Automation (RPA) and the integration of digital technologies can optimize internal processes. This leads to higher efficiency, faster transaction processing and reduced operational costs.
Using data analytics and Artificial Intelligence for better decision making.
Through big data collection and analysis, banks and fintechs can gain valuable insights. Data analytics and Artificial Intelligence enable better risk assessment, personalized offers, fraud prevention and optimization of decision-making processes.
Innovative capability and agility
Digitalization offers banks and fintechs the opportunity to respond in a quicker and more agile way to changes in the market. By using agile development methods, testing and learning approaches, new ideas and innovations can be implemented more quickly.
Before joining DevelopX in 2021, Armin spent more than 10 years as a manager/principal at the top strategy consultancies Bain & Company and the Boston Consulting Group (BCG), advising corporations, mid-sized companies and private equity funds on strategic issues and the operational implementation of measures. Armin also looks back on more than five years as Managing Director at Germany’s largest comparison portal CHECK24, where he successfully managed and scaled the property insurance division as well as the insurance center.
Armin holds a PhD from LMU Munich in Capital Markets Research, a Master of Business Research, a Diploma in Business Administration from LMU Munich and a degree from the startup and entrepreneurship school CDTM (Center for Digital Technology and Management) from LMU and TU Munich.
At DevelopX, Armin focuses on optimizing customer-related processes and digital customer journeys. He focuses on the Insurance & InsurTech and Banking & Fintech industries.