Traditional Banks, Credit Unions Compete Against Digital-Only Banks

Traditional Banks, Credit Unions Compete Against Digital-Only Banks

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  TAB Bank Traditional Banks, CreditUnions Compete Against Digital-Only Banks
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  The entire bankingindustry continues to shift to digital channels. This poses more threats to the dominant traditional banks and credit unions. As technology improves, banks providers expect a new breed of solutions that beat the conventional model through innovative products and services to suit the liking of digitally-savvy consumers. Digital Products and Services to Augment Customer Experience A report from Capgemini expects digital-only banks to keep competing against conventional credit unions. With highly innovative products and services appealing to many consumers, traditional financial institutions need to keep up with their digital offerings. Synechron, a digital financial consulting and services provider, projects key trends that touch on improving the financial services this year. The said company expects these trends to come across the business and drive the whole financial services decision-making in the industry. Today’s traditional retail banks continue to invest in digital transformation. This is an attempt to acquire advanced processes and approaches. They now lean toward providing better customer experience while maximizing all efforts in boosting revenues and lowering costs.
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  User Experience (UX)Design aims to improve the customer experience for new business-to- business (B2B) and business-to-consumer (B2C) prototypes. More enterprise-wide risk management techniques will rise to match the rapid environment of financial services. Digital Trends Expected to Improve the Banking Industry As the digital era progresses, the industry expects innovation to zero in on using proven new technologies from pilot to production. For starters, Artificial Intelligence (AI) and Blockchain remain at large. Blockchain will intend to create a stronger focus on interoperability. AI, on the other hand, will capitalize on the cognitive use of cases across trading, wealth management, compliance, and sales. Big data initiatives move toward more intelligent approaches with better data visualizations and tools. Firms depend on legacy data while preparing for data standardization that started in 2017. Across the world, banks plan to automate processes and amplify their applications for a hassle-free customer journey. The competition aims to foster innovation, and many regulations and open-banking initiatives emerge along with it.
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  The industry startsto consider cloud for mission-critical infrastructure. Many banks will go for cloud adoption for security and regulatory compliance. As Open APIs push for the adoption of the cloud for consumer applications, banks need to come up with cloud-enabled applications and business models, as well. The industry projects an exciting and dynamic year for financial services. Many banks strive to provide a more effective process of doing business through digitalization. The competition between traditional financial institutions and digital-only banks remains alive. Now it comes down to finding out which one will survive. Or will both keep up with the evolving trends in the banking industry? Sources: https://www.synechron.com/news/synechron-identifies-biggest-financial-services- technology-trends-2018 https://www.capgemini.com/wp- content/uploads/2017/11/retail_banking_top10_trends_2018.pdf https://www.tabbank.com/ https://thefinancialbrand.com/69779/financial-technology-trends-data-ai-blockchain/