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Data Analytics: At the Vanguard of the Banking Industry
Bo Svejstrup, CIO, Danske Bank
The banking industry is constantly evolving, fuelled by the inception of innovative data-driven solutions designed to enhance its operations. A robust digitisation strategy combined with a resilient leadership can go a long way in overcoming the challenges involved in the integration of technology solutions.
Implications of Emerging Technology
The impact of technology on the banking sector has been quite significant. It has enabled the deployment of robust self-service capabilities, leading to enhanced customer satisfaction. Maintaining a competitive edge in the market is one of the prime objectives of a business, and the integration of data-driven technology will assist organisations in achieving just that. In this digital era, customers expect seamless financial services. The incorporation of advanced technology will empower banking institutions to cater to customer requirements effectively. Enterprises that have invested in technology and successfully incorporated its capabilities are witnessing an improvement in their cost to income ratio.
When it comes to the banking sector, technology is permeating through a myriad of processes, strengthening internal operations as well as customer services. Since the incorporation of internet and mobile banking services, the banking sector has witnessed accelerated technological progress. The integration of novel technologies such as artificial intelligence and data analytics has enabled the industry to break through the inherent barriers.
Impediments Slowing Down Technology Deployment
Today, a majority of banking services are driven by data. This has not only facilitated higher customer satisfaction but also contributed to improving the overall customer experience. Despite the digitisation of multiple processes, many organisations in the sector continue to utilise legacy systems. There still exists a preference for the human-to-human interaction model. The challenge lies in consolidating the conventional systems with the technological transformations in an organisation.
Despite the digitisation of multiple processes, many organisations in the sector continue to utilise legacy systems
So, the question that arises is: how can they be transformed in such a way that they fit into the digitalisation agenda without compromising customer engagement? We can dabble in a variety of experimental approaches, including call replacements, modernisation projects, and so on. At the end of the day, it all comes down to how the investment will enhance the customer experience.
A practical path toward technological transformation is through a comprehensive assessment of existing legacy systems to assist developers in constructing the perfect solution for specific verticals. We can think of incorporating APIs into the legacy domains, enhancing the internal and external banking operations before moving on to the back end processes.
Key to Successful Digital Transformation
The effectiveness of digital transformation often depends on the strategy employed by an organisation when integrating data-driven solutions into the processes. For instance, some banking institutions choose to develop their own solutions, whereas others prefer to outsource from external vendors. Ultimately, a successful deployment comes down to three things. Firstly, you should be able to innovate and deploy the solutions continuously. Secondly, the implementation should not stretch over long periods. Thirdly, the integrations should be flexible for upgrades when the need arises.
Navigating the Evolving Business Landscape
The deployment of advanced technology, including APIs, is crucial for the modernisation of legacy systems in core processes. It is, hence, advisable to invest in robust data platforms, not only for the centralisation of data but also to facilitate seamless access for data scientists and analysts. The insights will allow the organisations to drive cost optimisation while also ensuring compliance with the regulations. The banking sector needs to be at the forefront when it comes to the incorporation of cognitive technologies. Artificial intelligence and machine learning are creating ripples in the banking environment, leading to robust and innovative developments. However, the deployment of disruptive technologies is not something that can be done overnight. It requires forethought as well as deep insight. It is advisable to start with limited deployments before expanding on a scale based on the outcomes. It can be restricted to a couple of verticals, leveraging locked data for the new models. It will not only accommodate employee training but will also enable the machine learning systems to familiarise themselves with the nuances of different processes.
A Resilient Leadership Fosters Technological Progress
In a tech-driven world like today’s, understanding the technology infrastructure deployed in the organisation has become extremely important for executives and officials in the banking sector. By developing a roadmap and setting a direction for the IT team, banking enterprises can significantly improve customer engagement and establish a powerful presence in the competitive landscape. Keeping pace with the latest technological trends is a challenging prospect and requires resilience when facing failures and obstacles. The best kind of learning occurs through mistakes, but the recipe to success lies in admitting the oversights and changing directions immediately afterwards
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