RETAIL BANKING
Enabling the Market Speaking with MEA Finance, Amit Malhotra General Manager, Personal Banking Group says that traditional banks cannot rely on their legacy alone and foresees data as being key in the coming years with personalised offerings helping secure loyalty however, neobanks must become more than just a valuation play if they want to succeed
spend more, exhibit deeper loyalty to companies, and help organisations lower costs and increase profitability. In this dynamic of value creation and sustainable competitive advantage, d e l i ve r i n g d i g i ta l s e r v i c e s a n d operations has emerged as a key enabler in reshaping customer experience in almost every sector. As digital giants such as Amazon, Netflix, Apple, and Uber continuously reinvent themselves by delivering simple, immediate, and individualized experiences, banks are also taking bold moves to build dynamic shared digital ecosystems around customer needs. Data will continue to be a key differentiator for retail banks in the coming decade. Analytics can help banks find new business models and provide more personalized offerings and improve risk rating of customers. Banks have enormous amounts of data which they get through ATM deposits/ withdrawals, point-of-sale purchases, online payments, loans etc. However, until they fully leverage these data sets, they will remain “data rich” but “insights poor”.
How will the co-existence of legacy retail banks and neo banks evolve in the coming years?
Amit Malhotra, General Manager, Personal Banking Group, CBD
W
h a t key a c t i o n s should the regions retail banks take to ensure they thrive in the near to medium term?
To thrive in the near to medium term requires agility. The landscape of the financial sector is changing dramatically. With technological disruption, the
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emergence of new entrants, both FinTechs and digital giants, as well as constantly evolving customer expectations, organizations are forced to continuously adapt to these changes. Improving customer experience and delivering personalized offerings are no longer “nice to haves”. Results have shown that satisfied customers
Banking and Finance news in the MEA market
Legacy retail banks will need to evolve and cannot depend on their legacy and customer base alone. They need to adapt to the new digital world and offer relevant and customized solutions to retain and grow their customer base. Neo banks will have the advantage of speed and agility and a digital only approach for all their products and services. However, they will need to quickly figure a way to scale their business to reach optimal levels and more importantly make it a profitable business and not just a valuation play. I foresee a future where there will be
