Automation and Service segregation in Banking Sector to Improvise Customer experience: Ken Research

The banking sector is laying greater emphasis on providing revamped services to their clients, enhancing their technological infrastructure in order to give banks a competitive edge. There is an uncertainty prevailing in the banking industry as many capital markets are being transformed and experiencing serious existential threats. 

Artificial intelligence and machine learning, block chain technology, collaborative ecosystems, demographics, and consumerism are the major driving forces affecting the banking industry. Over the last few years, large and complex capital markets and banks have been untangling their business and operating models both for economic reasons and to diminish organizational convolution. There is an increasing perception that traditional banks cannot excel in every activity and that it is reasonable to outsource noncore activities. The banking and financial sector is a zestful sector that regularly undergoes through a series of systematic changes. 

Few years back, banking brands were on par with most other industries in terms of consumer faith and brand value but the financial crisis in 2008 changed the whole scenario. Conveying a consistent brand experience is the biggest challenge faced by the banking industry. Regulation has been imposed on certain banks, urging them to monitor their activities and capital position more diligently. In modern times, trusted intermediaries are mandatory for facilitating safer payment transactions. There is an emerging threat of disintermediation in the payments industry which is both real and forthcoming.

Enhanced spending on infrastructure, rampant implementation of projects and continuation of reforms are expected to provide further thrust to growth. Growing usage of internet and mobile phone penetration has transformed consumer financial activity, allowing consumers and businesses to connect in new ways. Online transactions, mobile point-of-sales, digital payments and private block chain payment system will deliver a remarkable transaction volume by 2020. There will be more direct payments which will automatically reduce the role of intermediaries. Incumbents along with increasing digitalization will be in the mainstream and dominant in the banking industry. The role of the human trader is diminishing due to electronification of exchanges and algorithmic trading. Optimistic business sentiment, enhanced consumer confidence and more controlled inflation are likely to prop-up any country’s economic growth.

Mobile Banking transactions declined in 2015 due to bank’s inability to keep up to the expectations of customers. Consumers also have preference for a bank which provides best in-class experience, integrated service and imposes less restriction for the new entrant. Banks either need to build their own competitive solutions, they can buy those solutions from outside or they can forge new partnerships. OnDeck and JPMorgan Chase’s partnership was made to help make loans to some of the bank’s roughly four million small-business customers.

Key Vendors delivering online services
Square - It is the best used for business requiring mobility. It has many customizable features including inventory monitoring, the ability to take online orders, print receipts, print tickets to restaurant kitchens, report sales and set up automatic tips options.

Paypal - PayPal offers many customer service options including phone, email and community support as well as an online developer community and can be used to transfer and pay money to a friend.