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The financial technology landscape

Fintech innovation disrupting financial services

​The financial technology (fintech) landscape is being disrupted and transformed through new banking technology, fintech innovation, big data, IoT, and more. What does all this mean for regional banks and what should you be doing about it? Explore these topics with us in the following blog series, originally published in Bank Director magazine’s FinXTech section.

Are you a banker or a visionary?

Forget digital disruption (briefly). Banks are generally considered successful when people choose to bank with them—repeatedly. That’s the No. 1 reason you should invest in digital, boldly and quickly: to help build trust and customer loyalty. Going fully digital—reimagining and digitizing banking operations and processes, and rethinking core infrastructure—can make it easier to run a more agile, efficient, and profitable business that consistently “wows” customers through innovation.

Blockchain makes digital ID a reality

Archaic identity systems aren’t just frustrating—they’re holding back innovation. The full potential of financial technology and digital global finance, so close at hand, will come about only when a global standard for digital identity does. The technology to make that happen? Blockchain.

Getting big value out of big data

Banks are considered leaders in data analytics but some banks aren’t actually doing a great job of translating data analytics into better customer service and smarter relationship development or even taking advantage of opportunities to monetize data. A great banking relationship should be about delighting the customer—that means using analytics to anticipate customer needs, flag (and fix) patterns that precede complaints, and deliver experiences that exceed customer expectations.

How can your bank tap into the Internet of Things?

The Internet of Things (IoT) has officially moved beyond hype. While IoT is delivering on its promise in a wide range of industries—driving improvements in operational performance, customer experience, and product pricing—many bankers are still struggling to find the value. We see two primary opportunities for banks: direct use of sensors to engage customers and assess creditworthiness, and payment services for device-initiated transactions.

Advances in machine intelligence that will benefit banks

Over the past two years, banks have enthusiastically embraced robotic process automation (RPA)—and for good reason. At the same time, scientists have been making tremendous progress in big data analytics and artificial intelligence (AI). The stage is now set for the third strand of automation in banking: AI (also known as cognitive computing) and machine intelligence.

Have you chosen your blockchain consortium yet?

Large banks are making big bets on blockchain, but regional banks should be looking at opportunities to leverage blockchain, too. Forming groups—consortia—can help you create the aggregation of abilities and shared risk to take advantage of blockchain, either to do things differently or to do different things.

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