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Transformative Banking - Go Digital with Disruptive Technologies Transformative Banking - Go digital with disruptive technologies issue 16 inside this issue From the Managing Director’s Desk From the Managing Director’s 1 Dear Readers, Desk As we settle down in the digital era, there is a lot to look at Banking 2020: Technology 2 and contemplate. Business, as we know it has changed. Disruption in Banking Millennials are pushing companies to the edge, when it comes to customer experience. Competition is getting 5 Commercial Lending Resurgence stiff, with startups eating away your market share. And the workforce is demanding anytime anywhere work flexibility. Mobile Imaging Technology 8 Changes the Face of Banking So, what is it that as a bank you could do to ride this wave of transformation? Newgen Product Portfolio 11 This edition of our research based newsletter talks about Research from Gartner: 12 just that. The article on ‘Banking 2020’ gives you a sneak-peek into what the future looks like Hype Cycle for Digital Banking and what all you need to do to be prepared. There is a link to an interesting video in the article, Transformation, 2015 which you must watch. The article on ‘Commercial Lending Resurgence’ talks about the need to balance risk management with customer experience in today’s times. We also take a look About Newgen 47 at how Mobile Imaging technology can empower your field force to be more efficient and Newgen at a Glance 48 productive. Newgen has helped many of its global clients become market leaders through innovative solutions. We have over 200 banking clients from all across the globe. Some of our prominent clients include ICICI Bank, First Caribbean International Bank, Abu Dhabi Commercial Bank, Ecobank, Alex Bank and East West Bank. Our key solution accelerators in banking industry include Account Opening, Commercial and Retail Lending, Loan Origination (Commercial and Consumer Loans), Credit Cards, Trade Finance, Wealth Management, Payments and Tab Banking. This edition also carries an insightful report from Gartner on ‘Hype Cycle for Digital Banking Transformation’ that throws some interesting facts around technology trends that will drive the industry forward. I hope you will enjoy reading the newsletter. Best Regards, Featuring research from Diwakar Nigam MD Newgen Software Newgen is the only company globally to be included in the four latest Magic Quadrants for Magic ECM, BPM-Platform-Based CMFs, iBPMs , and CCM * Source: Newgen Banking 2020: Technology Disruption in Banking Here’s how your customers expect to transact with your bank in 2020 • While on vacation – relaxing on a beach • From the convenience of their home • Banking on the go Well, I would prefer all three where time, place and medium don’t matter. Today, Banks are adapting to changing consumer behavior and are focusing on building new channels for interacting and transacting with them. The millennials in particular prefer banking anywhere, anytime Transformative Banking - Go digital with disruptive technologies is published by Newgen. Editorial content and is therefore demanding innovative methods for availing banking supplied by Newgen is independent of Gartner analysis. services. All Gartner research is used with Gartner’s permission, and was originally published as part of Gartner’s syndicated research service available to all entitled Hence, banks are trying to achieve the balance between delivering Gartner clients. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The use of Gartner research in this innovative, high-touch transactions and the traditional modes of publication does not indicate Gartner’s endorsement of Newgen’s products and/or strategies. Reproduction services. They continue to innovate to find ways of interacting with the or distribution of this publication in any form without customer that are more direct and relevant. Gartner’s prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity” on its website, http://www.gartner.com/ technology/about/ombudsman/omb_guide2.jsp. 2 l Transformative Banking – Go digital with disruptive technologies Transformative 2 l Combining the physical with digital With the introduction of newer modes of payment, prepaid It is possible that in future we could see banks serving fewer instruments will have a higher usage. There has been clients but having deeper relationships with them. They may significant traction in the usage of such instruments for settling focus only on those products that they are really good at rather radio cab service bills and other ‘app’-driven transactions such than trying to provide all things to everyone. Digital touch points as utility bill payments and online purchase of merchandise. are proving to be a viable answer to several consumers’ basic Moreover, with the inclusion of cash-out system along with the banking needs, while in-person interactions at the branch could payment banks, their usage is only going to expand faster. continue for critical and sensitive issues. Social media and the banking industry The branch can remain the central hub of activity; however Social media is also dramatically impacting the banking it needs to blend physical presence with digital technology industry and pushing banks to establish their presence on to create a ’phygital’ environment where consumers can prominent social sites. They are engaging with their customers design their own experience through their preferred channels. via social media, analyzing the conversations and creating Phygital transformation has in fact already begun in banks another exceptional channel of experience. By being proactive with measures such as moving current functionalities online to and responsive, they are ensuring a better experience for their making banking convenient. customers. The visionary banks have gone one step further to reinvent A leading survey showed that customers consider ‘in-person’ customer experience by providing newer ways to engage and interaction with the bank as one of the most important attributes provide value to customers. Banks have also started partnering of banking. Social media is able to provide that personal with technology start-ups to accelerate innovation and create connect by facilitating a two-way communication. With an new propositions. One such example is that of “Virtual Banker”, improved targeting, enhanced advertising, full compliance a collaboration tool that allows video conferencing between support, more efficient ROI tracking and more – social media customers in branches and remotely located bank advisors. now has the potential to play a meaningful role in a bank’s The tool is supported by an integrated document sharing marketing plan. functionality as well as an integrated scanner and printer A robust social media strategy helps banks connect with their to send, receive and retrieve signed documents. Thus, by customers, gives a human interaction experience, and makes integrating digital channels into branches and vice versa, banks their communication more effective. If executed with diligence, provide customers with a true omni-channel experience, where social media posts can add another dimension and the much- branches and online platforms are used interchangeably! Transformative Banking – Go digital with disruptive technologies l 3 Transformative needed depth to the bank’s relationship with consumers in a Banks should not ignore mobile wallets marketplace where there is intense competition and nothing With Mobile wallets witnessing a higher level of adoption like brand loyalty exists. across geographies, it is quickly becoming a robust customer engagement tool and an imperative to increase the customer base. The true value of mobile wallet lies in the time and the money saved, as well as the convenience experienced. Deliver a futuristic banking experience to your customers where Place, Time or Medium no longer matters. Here is an interesting video that depicts how Newgen can help you deliver just that by connecting Systems, Processes, People and Things. Source: Newgen Robots and AI invade banking At a height of 58 cm, weighing 5.4 kg, the robot works at the Banks are even looking at using robots or artificial intelligence reception area. The robot has been named Nao, and speaks to augment human-driven processes. In the latter (AI), the Japanese, English and Chinese. It is speculated that this bank systems automatically detect that the customer had recently is the first amongst the world’s major financial institutions to checked out a specific bank offering on his mobile device and employ a customer-facing robot. immediately alerts the thinking customer service concierge
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