By PSV Venugopal, TCS BaNCS Financial Solutions
Retail banking is arguably the biggest profit pool within the banking sector. The underlying customer base represents one of the most dissatisfied segments due to a myriad number of reasons. This has opened up possibilities of “defining” and “serving” the market differently.
Retail banking, at its core, is about managing two levers:
- Customer (relationship) management
- Risk management
During the last couple of decades, growth pressures have transformed banks into transaction processing machines with most customer-facing initiatives structured to either save costs, or generate sales, or a combination of both.
Banks are implementing various change and transformation programs under the umbrella of innovation. Largely, two models are being attempted with distinct focus: internal and external. Internal programs are aimed at the transformation of as-is technology, processes and people to deliver the desired levels of service. The external model aims to address people, which may include customers at an “interest” level based on communities. For example, social cause, sports, among others.
Banks will need to evaluate delivering value propositions that ease customers’ pain-points directly or indirectly. While technology will remain a differentiator, banks, however, will need to transition to the next level of backward integration from “transaction technology” to “customer engagement technology”.
In this white paper, we analyze a strategic approach for banks to tackle the evolving landscape of retail banking and remain competitive.
Read the white paper.