Time for Real Time | Deloitte | Financial Services Industry | Article | Insight has been added to your bookmarks.
Time for Real Time?
Why banks should be giving real-time processing a serious look
Given the current rate at which technology is evolving, the decades-old processing technologies and processes in place at most banks may belong in the Stone Age.
Migrating to a real-time processing model that completes transactions with no delays can be a game changer.
Real time processing has the power to improve the customer experience, increase back-office efficiency and boost analytics capabilities at a time when real insight is at a premium.
While real-time banking isn’t a new concept, for the most part it’s failed to advance in practice. Other industries have leveraged real-time technology in areas, such as for their logistics operations, thus transforming how goods are shipped, tracked and delivered. This has resulted in improved customer service and considerable savings for businesses. Meanwhile, many banks have adopted a host of technologies and mechanisms to provide a near real-time customer experience, particularly on customer-facing channels. But these incremental improvements are becoming elusive and decreasing in marginal benefit; most banks have already grabbed the low-hanging fruit. At the same time, the core engine and processing have gone virtually untouched and it’ll likely take considerable investment to modernize such systems at banks.
That doesn’t mean the costs, risks and efforts of moving to real time outweigh the benefits – not anymore. Many banks have exhausted its tactical options for improving service and making operations run more efficiently. However, several dramatic changes – technology advancements, regulatory pressures, increased competition and evolving customer expectations – are giving many banking leaders reasons to rethink real-time banking. Management should consider moving to a real-time processing model that can help the bank to gain the upper hand in an intensely competitive environment.