Whether we are ready or not, digital banking is here. Just as digital is transforming other industries, it is transforming banking, bringing with it online banking, mobile payments, paperless mortgages and mobile trading. Banks seeking to thrive in the midst of this revolution in customer experience must adopt a new strategic role designed for the digital world—what Accenture calls the “Everyday Bank.”
We’ve talked here about the Everyday Bank and its role in customers’ everyday lives, helping customers make better decisions on what to buy, and where and when to buy it. Some leaders in banking are taking steps to become an Everyday Bank. Others, though, are pursuing one-off efforts that won’t quite get them there. We believe it’s better for core banking to evolve, with four key goals in mind to guide the journey: Becoming digitally fit and analytics strong, functioning as the engine for personalized, everyday interactions and being adaptive to new paradigms.
Let’s explore these briefly.
To be digitally fit, banks should be scalable at variable cost, allowing the business to pay for what it needs and uses at a given time. It should be agile, open to internal and external service information. A digitally fit bank supports real-time processing of data and transactions. And, by automating key processes it performs these functions at low cost.
Strength in analytics is crucial, letting banks tap their rich, de-personalized data stores to build better customer experiences. Banks must find quality within structured data, while also ensuring data granularity is preserved. They need ways to add context to the data captured. Analytical models must be flexible enough to be applied across all layers of data.
When it comes to building a personalized, everyday engine, banks must invest in building a complete customer ecosystem—the digital village we’ve spoken of —that brings in third-party providers and service partners who are equipped to meet customers’ unique needs. That digital village must have inherent flexibility, and be able to accommodate personalized products and pricing tailored to each customer’s needs.
Finally, flexibility is vital. Core banking must be adaptive, and ready to adopt new business and cost models leveraging new technologies in a native way. Many paradigm shifts come with being the Everyday Bank, from learning to bring together third-party and internal providers to decoupling data from business functions to supporting cross-border operations that are smooth and seamless.
Many banks have started on this journey, and many have followed one or two of these four goals. But to become the Everyday Bank, core banking must move toward reaching all of these goals and building an everyday, meaningful connection with banking customers.