Banking and financial services organizations are moving beyond the basics of digital banking and one-size-fits-all services, according to our recent study. Get the six key insights from our research here.
To understand how banking and financial services organizations are preparing for a world dominated by digital and disrupted by Covid-19, Cognizant’s Center for the Future of Work surveyed 4,000 business leaders from around the world, including 287 executives at leading banking and financial services companies.
Our key insights include:
- Covid-19 sped up banks’ digital strategy progress. The pandemic shook the industry to the core, with 51% of banking respondents forced to take significant actions across the business to manage the sudden uptake in digital services, support remote employees and handle the influx of customer needs, from changing loan payment terms, to paying credit card bills and getting loans.
- Digital banking will expand beyond the basics. On average, respondents expect to generate 17% of their revenue from digital channels by 2023, up from 11% today. To meet these ambitious digital revenue targets, financial organizations need to imbue their digital initiatives with a human-centric and personalized approach to rebuild trust with consumers.
- The mesh of data analytics, AI and automation will provide personalization, predictions and speed. The top technologies used to augment business processes are data analytics (81%), AI (77%) and process automation (57%). By merging AI with analytics, businesses aim to improve data management, user experience and finance-related processes. The key to success is banks’ ability to turn these technologies into powerful experiences at every single touchpoint with customers.
- Efficiency, customer experience, decision-making are top outcomes. The top expected outcomes of technology-driven processes by 2023 are improvements in customer experience, operational efficiency and decision-making. Creating a holistic customer experience and understanding customers’ financial needs have become more critical than ever.
- Data is the new digital currency. Banking respondents say they’ll increasingly rely on intelligent machines to make complex decisions in real-time, sift large data sets to identify errors and actionable items, and improve processes. Leveraging machine-driven insights to augment workforce performance will become the new normal.
- Regardless of how much machines can do, humans will remain the ultimate X factor. Decision making (64%), customer care (63%) and communication (61%) will become the top three most essential skills in 2023. These skills are best performed by humans – not in isolation, though, but supported by the insights generated by AI and data analytics and complemented by the cost efficiency gains from automation.