Three Factors Decide Whether a Bank Will Succeed in the Future

News | 16. October 2023

Samlink Jagrati Singh Tulevaisuuden pankit

The finance sector is radically evolving. Almost every bank is changing their ways of working. The keys to success are progressive service modernization, innovative hyper personalization, and continuously evolving security.

Samlink and Kyndryl’s Senior Lead Jagrati Singh knows the finance sector. In Samlink, she works in new client acquisition and follows attentively the field of finance where nearly every bank is living through changes.

– In the future, banks need to focus on three things: modernization, innovative hyper personalization, and security. When these things are in order, the bank has every possibility to succeed, Singh summarizes.

The changes can’t be made too quickly or too drastically. Progressive modernization is the key and with careful communication banks need to help their clients to understand changes.

In the future, banks need to focus on three things: modernization, innovative hyper personalization, and security.

Investing and innovating

There’s an enormous number of different areas in banking as a business. The need for modernization is associated with them all, but especially in core banking systems which for many banks are expensive and difficult to modernize.

– Outsourcing IT is a reasonable and economical solution and can be seen as a current trend in the banking world. By outsourcing technology, banks have the possibility to invest in other core areas of their business, clarifies Singh.

Another significant factor in differing from others is creating innovative solutions for hyper personalization of services. Hyper personalization means that a bank knows and recognizes its every customer and offers them personalized services and even personalized views in banking apps.

– Many consumers are customers of more than one bank. To be chosen as the first choice the bank needs to hyper personalize services in new creative ways. I believe that in these processes, AI and machine learning will be used more and more to harness the data that banks collect to its full potential.

Every operator in the finance sector has the risk of being cyberattacked.

Thirdly, Singh emphasizes that organizations can’t forget continuous security development. Every operator in the finance sector has the risk of being cyberattacked. That is why banks must develop their security, identify risks proactively, adhere to new regulations and invest in recovery planning.

Something new something old

The banking industry will be utilizing artificial intelligence even more in the future. It will have a greater role especially in banks’ day-to-day processes, such as in customer service.

– Chatbots will utilize AI so that problems will be solved right there and then and not the next day when a human solves the problem presented to chatbot. People will without a doubt be still needed in the future, for example in more demanding customer service and even in developing AI services.

Even though modernization of services changes many things, certain banks’ basic elements will remain.

– While digital services stand out, physical banks will still hold their ground. Any customer target group can’t be left outside, and banks will still offer services face to face. In the next few years, I don’t see the scenario happening where physical banks would disappear from the picture, Singh discusses.