Digital banks are no longer in the ‘money’ business but rather, in the ‘value’ business. This value is not just providing a functional benefit but also a holistic experience, (i.e. ‘what, when and how’ of the benefit), that customer values in the experience-based economy. Unlike in the past, when more than two products from one
On 24th July 2013, the European Commission outlined proposals around the Payment Services Directive 2 (PSD2). One key element, is the ‘access to accounts’ proposal, which will require banks to open their customers’ accounts to Third Party Payment Providers (TPPs). So far, banks have been operating in a closed loop – this proposal will change that.
Apple Inc.’s Apple Pay mobile-payment system has taken some hits over rumors of rampant fraud. According to some reports, Apple Pay fraud is 60% higher than mag-stripe credit card fraud. And now, with the announcement two weeks ago of the Apple Watch and its support of Apple Pay, there is some concern that fraud could accelerate.
The consumerization of the technology industry has had a major impact on the way IT and business applications are built and managed in the financial services industry, leading to business complexity. Businesses today have a need to respond to dynamic changes in the marketplace to keep up with their consumers. Consumers are now interacting through
Though the pace of creation of new regulatory mandates has slowed and the future of existing rule implementation, such as portions of the Dodd-Frank Act, have been thrown into doubt with the Republican victories in November, there are still many issues facing banking institutions throughout the United States. In the 1st Quarter of 2015 Basel
Today, a new wave of disruption led by technologies like Mobile, Social, Big Data and Cloud, are forcing companies to innovate, and introduce new products and services at an unprecedented pace. Financial businesses, like the credit card industry, which is an ecosystem of merchants, payment processors, network providers and various other interdependent entities, are highly
Consumer behavior, technology and regulation have been transforming the retail banking industry. However, with so many different technologies available, it is important that retail banks separate hype from reality when deciding on their key investments for 2015 to ensure they can gain the best Return on Investment. Product differentiation between banks is negligible today; instead,
2015 is expected to be an exciting, if not challenging year for the financial services industry. The banks have improved profitability by shedding expenses and increased lending. This improvement has come despite the costs of regulatory compliance, as well as the legal costs for past failures. Many banks have spent the last several years improving
The pace of disruption in banking continues on a near weekly basis, creating challenges for banks to retain front of mindshare, and preserve and retain their customer base. Consumer banks are threatened in nearly every traditional product area from upstarts and more nimble competitors, to non-bank players that are disrupting the traditional interaction model between
According to the 2014 World Retail Banking Report from Capgemini and Efma, less than 40% (a decrease from 41.6% in 2013 to 39.5% in 2014) of customers globally reported having positive customer experiences with their bank. The main reason for this dissatisfaction is the bank’s failure to develop a comprehensive digital and brick-and-mortar strategy around
The deployment of Alternate or Omni Channel Solutions in Banking, Financial Services and Insurance (BFSI) is not intended just for selling services or products, but also for elevating the customer experience. Often a customer may want to buy or subscribe to a certain product that may not be aligned with his or her needs. It
The last few years have seen significant new regulation in the banking space. It has not been an easy period for financial institutions, with many industry personnel and observers questioning the rationale or efficacy of new rulings. Interpreting and implementing regulations based on guidelines (not precise rules) has made the task all the more challenging.
Business process improvement and the implementation of business process management (“BPM”) technology can truly become a “cart before the horse” dilemma for many organizations. Software vendors and implementers are often called upon to deliver the nirvana state that they sold their customer on, by simply automating a process without considering the fact that the process
Foreign Account Tax Compliance Act (FATCA), a US anti-tax evasion law with global implications has been at the center-stage of the regulatory space for the past two years. It aims to curb cross-border tax evasion by implementing a reporting framework that requires information from worldwide institutions on a US customer’s financials. The IRS has placed
Banks have come a long way from their early branch-heavy days to the new age of ‘anywhere, anytime’ banking. The onslaught of internet and mobile banking is throwing doubt on the continued relevance and feasibility of the branch. Couple this with the high operational and maintenance costs of the branch, and it raises the question
Client lifecycle management (CLM) operations involve transforming from a prospective client to one who can engage in business activities with a financial institution. These activities include collecting all the details of the client organization such as name, registration, address, purpose, products interested and ownership structure, KYC (know your customer) checks for political affiliation, risk scoring,
It’s well known that it’s more cost effective to sell to existing customers, than it is to acquire new ones. If businesses can gain extra insights into how their customers use their services, they can find new ways to tailor and customise those services to individual customers. Electronic payments make the interaction with a business
When Apple announced Apple Pay as a service on September 9th, they mentioned a few key terms like secure element, tokens, one time unique number, device account number and dynamic security code. For the layman, this could mean that Apple has used the most advanced security technology in Apple Pay; but for the folks in
Banks and Financial Institutions (FIs) have been trying hard to gain customers and increase market share in the retail customer segment. Traditionally, a bank’s distribution channel via extensive branch network used to guarantee that the prospects could always reach the bank and do business with them. Now, because of digital disruption, prospects are seeking banks
U.S. capital markets typically define how the rest of the world markets operate. More financial investments are made in the U.S. than in any other country. But this supremacy hasn’t always translated to leading business and technology practices. Senthil RadhakrishnanVice President and Head of Capital Market Solutions Group, Virtusa. Senthil has 16+ years’ experience focused