Trying to stay ahead of the curve when it comes to IT issues is a challenging task. Emerging technology forces in the financial services industry are already impacting business. The convergence of these forces does present challenges; however, it also provides a window of opportunity for financial institutions to elevate business performance and gain a competitive advantage. Perficient provides a monthly perspective on some of the most talked about IT issues and emerging trends to help industry professionals identify and rationalize their IT investments.
Good UX Means Good Business
In a world where technology is rapidly advancing and user expectations are rising, it’s no longer enough to have an average user experience; to delight your users and surpass your competition you must strive for the exceptional.
Combatting “digital disruption” with a next generation mobile banking strategy has become more than just a trend. Mobile banking has become a regular channel and customer touch point. Today’s smartphone users expect to be able to manage their finances when, where, and how they want. The digital ecosystem continues to evolve as the next wave of mobile offerings comes about. Banks that can excel at engaging with their customers in a virtual world, add new services, and develop consistency across all channels will be the true test for today’s leading financial institutions.
- Big Banks Bet on Mobility and Super-Powered ATMs
- Mobility’s Undeniable Benefits
- Imaging Brings Coveted Ease of Use to Mobile Banking: Study
- Banks Ramp Up Investments in Innovation
- Will the Power of Mobile Make Bank Branches Disappear?
Making Waves in Mobile Payments
To remain “top of mind” and “top of wallet” in consumers’ perception, banks must define their tactical and strategic plans in concrete terms and decide which payment capabilities best represent customer needs. Banks must rationalize mobile payments as a key customer channel to be competitive against emerging capabilities of non-bank payment providers. Juniper Research estimated that worldwide mobile payment volume would reach an incredible $240 billion this year making this a hard trend to ignore if you’re a financial services provider or bank.
- MasterCard’s MasterPass Aims to Sidestep the Mobile Payments Mess
- Scalable Architecture Framework for Digital Payments
- Google Wallet Installs Top 5 Million
- Fast Company: Top 10 Most Innovative Companies in Finance
- Microsoft Perspectives on Payments and Core Banking in Financial Services
‘Customer 360’ in Banking a Top Priority
The financial services landscape continues to evolve – not only in terms of growth and opportunity, but also in complexity and increased competition. Leveraging data as a strategic asset helps you strengthen customer relationships, differentiate yourself in the market, and realize sustainable growth. To succeed, financial institutions must overcome data and integration challenges to develop a strong foundation for effective information management. The move to master data management (MDM) provides a set of capabilities that define, maintain and deliver trusted information across the enterprise – critical to creating a 360° view of your customer and identifying cross-sell/up-sell opportunities.
- Overcoming Master Data Hurdles in Banking
- Create a ‘Customer 360’ with Master Data Management for Financial Services
- Optimizing Your Data Management Strategy in 2013
- The Payoffs of Master Data Management for Banks
- What Master Data Management Metrics Matter
Expectations of PFM Tools Evolve
We’re seeing more movement towards banks developing a more integrated strategy for personal finance management (PFM) tools as part of their online banking services and tablet banking applications. PFM helps strengthen the banking relationship by providing value and greater visibility into finances across multiple channels. As the rapid adoption of tablets continue to challenge smartphone growth, financial institutions can leverage unique experiences and interactions for customer touchpoints to enhance the digital banking experience.
- Wells Fargo Beta Tests Cash-flow Projection Tool for Consumers
- Online Banking 2.0: Getting Visual
- What Consumers Want in PFM Tools (Hint: No Pie Charts)
Virtual Currencies and Social Services Gain Legitimacy
Virtual currencies are seen as disruptive technologies but are gaining legitimacy from online retailers. Although there may be a lack of confidence in the virtual currency, market, venture capital funding and the potential for traditional bank partnerships will increase consumer confidence. Banks face competition from the potential of established social platforms like Facebook. They need to consider both virtual currencies and social money transfer services as legitimate form of payment and find ways to incorporate it into their bank’s service offerings.