A expertise evangelist with over 26 years within the trade, Nanda Kumar (NK) , the CEO of SunTec, has formed the wave of customer-centric software program platforms and options for pricing and billing, notably in transaction-intensive verticals.
He pioneered the idea of relationship-based pricing – an thought trade analysts and thought leaders now acknowledge as the important thing to balanced pricing dynamics. NK has made SunTec one of many international leaders in income administration and enterprise assurance area within the monetary and telecom industries. Below the steering of NK, SunTec has forayed into areas comparable to provide administration, loyalty and relationship-based pricing. Below his management, the corporate has received a number of awards and is taken into account a frontrunner in enterprise merchandise. He has delivered quite a few talks throughout international boards comparable to SIBOS, 3G Cellular Discussion board, Indian Banking Summit and Gartner Summits and holds a grasp’s diploma in administration and physics.
What can banks do to stay aggressive and develop whereas navigating this present turbulent panorama?
Banks must embrace and speed up their digital transformation initiatives and concentrate on buyer centricity to outlive and thrive throughout these unprecedented instances. Many banks acknowledged this was mandatory even earlier than the pandemic, however the pandemic and corresponding market volatility have created a brand new sense of urgency, and an understanding that we can’t merely revert to our earlier “normal.” And whereas a number of have tried to accommodate clients within the short-term with incentives like deferred curiosity, waived or overdraft charges or bank card and mortgage help, these measures is not going to be what drives development, profitability or most significantly, buyer loyalty.
Rising market strain and altering buyer sentiment are forcing banks to reimagine how they will lengthen their value proposition past core choices. They understand they need to ship extra hyper-personalized providers, enhanced transparency and holistic capabilities so as to add measurable value throughout every step of the client journey and provide a brand new degree of buyer engagement and contemporary sorts of digital banking providers. That may solely occur if banks rethink their core expertise, foster robust accomplice networks and perceive the true that means of digital transformation, all whereas inserting empathy and agility on the coronary heart of their technique to humanize the banking expertise.
To turn out to be really customer-centric, ship distinctive service and proceed to develop, banks should embrace each offline and on-line models. Bodily bank branches will proceed to play a pivotal position for a lot of shoppers and can stay an vital car for banks to not simply entice new clients and retain present ones however to interact extra deeply with them. Bank branches will turn out to be expertise centres like Apple shops, providing a spot for patrons to discover services and resolve extra difficult banking issues. Clients wish to have entry to this sort of bodily expertise centre – after which have the flexibility to carry out their banking features and transactions digitally, whether or not it’s cell, app or web-based. Delivering this new degree of personalised buyer choices would require banks to embrace a brand new mind-set that allows them to reevaluate their holistic programs, processes, information and other people.
How can banks ensure that their digital transformation technique will drive buyer loyalty and belief?
Buyer loyalty is presently fragile, which suggests buyer retention and belief are vital to any digital transformation initiative. This provides banks a novel alternative to offer value-based engagement and hyper-personalized providers to empower their clients, assist meet their quick and long-term wants, and construct and retain their loyalty and belief.
Banks can kick-start their transformation journey by simplifying complicated operations and infrastructure, embracing clever expertise and companions to create the fitting service bundles for his or her clients, and understanding the right way to leverage buyer information to supply service-first models. They’ll begin with a reasonably low-risk methodology that permits them to leverage their present infrastructure moderately than overhauling their complete system and undertake a digital core. That can permit them to hole out buyer engagement features from the core system and managing it as a horizontal cross-enterprise layer. They’ll then shortly deploy new applied sciences and add performance that delivers the personalized merchandise and built-in providers that clients actually need.
Because the banking expertise evolves from product-based to customer-based, banks should determine new methods to design and ship the hyper-personalization providers that clients anticipate. That is very true for youthful audiences like millennials, who grew up on immediately’s expertise and anticipate a seamless digital expertise. By making good use of buyer information to uncover the context behind banking transactions, banks can perceive their clients’ final targets and add value to each interplay, presenting presents and alternatives in real-time which might be catered to totally different audiences and in the end ship a superior buyer expertise.
What do you assume the longer term holds for conventional banks and fintechs, by way of what they will provide to clients? Do you anticipate elevated collaborations throughout the ecosystem (i.e. between banks and fintechs)?
Fintechs have efficiently encroached on conventional banks as a result of they’ve prioritized the consumer expertise and buyer journey. This has enabled them to quickly develop their buyer base and seize elevated market share from banks and different conventional monetary providers suppliers. Banks can study from how fintechs have targeted on service-first models that engender buyer loyalty and belief, and the way fintechs view and use information to ship a clear, personalized consumer expertise vs. a conventional product.
The rise of fintechs and different challengers is forcing banks to recast their methods and roadmaps, which is a optimistic change. Banks now understand they should higher leverage their present belongings to re-focus on customer-centricity, ship value-add services and personal the client value chain. This implies delivering a model that features each bodily department banking and digital banking providers. Banks are well-positioned to do that; they already possess quite a lot of intelligence on their clients, examined methods to work together with them, and the flexibility to compile and analyze buyer insights. If they will intelligently put money into the fitting expertise, companions and assets to customise their choices, banks have the ability to allow really empathetic and humanized banking and provide a brand new degree of buyer expertise.
With the rise of Open Banking and an API pushed ecosystem, there are additionally vital alternatives for banks to more and more collaborate with fintechs, impartial builders and non-financial way of life establishments. This may permit them to supply holistic bodily and digital providers that immediately affect the client lifecycle and in the end make Banking as a Service (BaaS) a actuality sooner moderately than later.
What tendencies do you assume we’ll see in a COVID-19 formed banking world within the subsequent 12-18 months?
The one factor the banking trade may be sure of on this COVID-19 atmosphere is extra uncertainty. The time is now for banks to future proof to make sure they will shortly adapt to altering market situations, new buyer necessities and continued disruption. And whereas the present difficulties going through banks and the broader trade are very actual, they will additionally function a catalyst to speed up long-overdue initiatives.
Within the subsequent 12 months we are going to see extra banks look to modernize their legacy expertise programs, concentrate on flexibility and scale, and speed up their digital transformation initiatives. They’ll start to embrace buyer information to make sure their choices add actual value to the client journey, ship hyper-personalized providers, and permit them to shortly reply to shoppers’ evolving wants. Elevated competitors from fintechs and the Huge Tech firms comparable to Google, Amazon, Fb and Apple will power banks to shift from product-based choices to experience-based and service-first models. This may allow them to concentrate on customer-centricity and really personal the client value chain. And the value of connecting with third events turns into extra clear, the transfer in direction of Banking as a Service (BaaS) will speed up and turn out to be a precedence, permitting banks to quickly innovate and broaden their product and repair choices via a collaborative accomplice ecosystem.
The banks that emerge stronger post-pandemic can be people who deploy expertise innovation to ship on clients’ expectations, management prices and differentiate themselves from rivals. If they will concentrate on these vital areas throughout these difficult instances, they will remodel themselves to turn out to be an agile, customer-first group that builds, retains – and largely importantly deserves – buyer belief and loyalty.