A survey I’m conducting of 20 financial institutions reveals that the key challenges facing the industry center around:
(1) Enhancing Customer Experience
(2) Governance, Risk & Compliance
(3) Operational Efficiency
…. with technology disruption (particularly amongst payments) embedded amongst them.
With Customer Experience and Operational Efficiency being the two largest issues, it is no surprise that institutions are still focused on optimizing infrastructure by reducing “run-the-bank” costs and leveraging the savings to improve the experiences they create for their customers.
Financial institutions realized decades ago that innovation needed to be at the core of offerings. However, they now know that it also needs to be at the center of customer experiences due to rapid changes in technology — in particular, around mobility and social media, powered by significant advances in analytics.
The long coveted “segment of 1” comes closer to reality with the deep personalization that analytics enables. Further, these analytic capabilities also enable optimization of regulatory/compliance environments, further improving operational efficiency.
Over the next several weeks, we will explore some of the issues highlighted below in more detail. In the interim, continue to send in your thoughts.