Back to the customer
Privacy and security are a key concern. Consumers are ever more aware of the regulatory environment and how it touches them. In particular, regulations like GDPR, MiFID II and Dodd-Frank have given consumers more insight into the rules that are in place to protect them.
They are becoming prepared to share data in return for a service, but they expect that their data is held and used correctly. They want to know that financial institutions have the right systems in place to protect their personal assets.
This ties in with the need to provide a better service to the customer. If banks want access to customer data to provide digital value add at the front-end, they need to demonstrate that they have the correct processes and procedures in place when it comes to compliance at the back-end.
A safer marketplace in this respect nurtures trust. It also allows the market to evolve organically, using technology not just to automate but to analyze new and old data alike, and to learn from it to improve the front-end value add for customers, supported by a robust back-end contribution.
Banks must also consider the establishment of FinTechs and neobanks into the industry ecosystem. Digital-only neobanks and initiatives like Open Banking have put technology in the spotlight.
Banks that can harness customer data to provide a platform of relevant products and services – while also safeguarding customer data and funds – are more likely to retain customers. They will have a much more cohesive and reassuring offering, and therefore have a better chance of success in an era where data privacy and security are paramount.
They will need to have the right technology, front and backend, to succeed.