Brazilian banking technology is historically one of the most advanced in the world – and the sector’s high investments in IT are just one of the proofs of this maturity -, especially with the accelerated advance of transactions in the online environment. According to a Febraban research, the banking sector invested R$ 25.7 billion in technology in 2020, 8% up on the previous year. According to the study, 93% of the 21 banks consulted are focused on artificial intelligence and 87% of the investment is aimed at customer service.
On the other hand, the challenges remain very critical when thinking about the capacity of large banks to offer their customers really relevant, agile, dynamic, personalized and needs-centered interactions at that time. The emergence of digital banks showed an agility gap that makes the structure and legacy systems of traditional banks difficult to keep up with the new demand at the speed that new entrants have been making possible, after all, they were born digital and do not have the challenge of uniting the “old” and the new world.
Below are some points of attention for the future of banking operations, in order to reduce the distance between large and digital banks in terms of customer experience and market performance as a whole:
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End-to-end automation. Automation in any banking operation must be thought of end-to-end, with a systemic approach to the process that enables the intelligent processing of data to ensure hyper-personalized customer service in real time. Just trying to improve a manual process without considering the new digital world, such as implementing RPA (Robotic Process Automation,) without a process review, does not solve the problem.
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Prioritization of micro journeys. With the complexity of the structure of large banks and their numerous legacy systems, it’s no use wanting to transform everything at once. Starting with the most profitable product lines is the most rational path and one that can leverage commercial value more quickly. By prioritizing micro journeys, banks can realize the benefits of end-to-end automation and then gradually expand to other products. This is an approach called MLP (Minimum Lovable Product), which brings together micro journeys and seeks to offer the most desired solution by users, delivering business results faster in a way that delights customers and makes their lives easier instead of bureaucratizing . The idea is to start with parts to reach the whole.
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Omnichannel gives way to less channel. The omnichannel proposal of offering a unified customer experience across the most diverse channels and platforms needs to evolve towards a less channel approach, in which what matters to the consumer is real-time hyper-customization, whatever the channel, considering that each customer has its own unique journey and context. This is designed around the notion that the modern customer rarely thinks within channel boundaries. The channel is simply a background to your experience, not a primary factor. What the customer really wants is the perfect resolution of that interaction, at that specific moment. This is only possible from a view that we call center-out, which is looking at the issue from the core of the customer’s need and then building the hyper-personalized journey to the edges.
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Low-code gives the perfect match to banking operations. Low-code technology reduces costs and speeds up time to money, a basic premise in the banking sector. A low-code platform allows you to copy&paste, reusing processes and gaining development agility, which consequently increases productivity and brings an effective ROI. Another great advantage is in relation to the skilled workforce in IT, as the low-code allows for less entry barriers for professionals who want to work with technology even without having a technical profile. Low-code democratizes access to IT and simplifies the complexity of business processes.
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Pay attention to new investments. As we said before, banks continue to invest heavily in new technologies, AI, automation and user experience. Despite this, there is still a lot of poor investment, without ROI and assertive benefits. One global study, driven by iResearch, interviewed 750 IT leaders from 10 countries across the Americas, Europe and Asia-Pacific, and found that nearly two-thirds (58%) of respondents admitted they had lost between $1 million and $10 million in the past five years by choosing to inadequate IT solutions. Only 12% reported that all of their IT investments have been rewarded in the last five years.
Large banks still have a long way to go to become as agile as those that have already emerged digitally, but they also have all the credibility, muscle and strength of years and years of history in their favor to be able to take a leap of modernization legacy in light of digital transformation. Really thinking about the customer at the center of the strategy, with hyper-personalized journeys and real-time service, should be the main guideline for any initiative by the leaders of the banking sector so that this becomes a reality in the near future.
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