The banking industry nowadays plays a vital role in the day to day lives of the customers. And they face many problems to come that there are some points to list.
The banking industry is undergoing a radical shift, they are mainly driven by some competitors from Fin Techs.
They are changing the business models, mounting regulations, compliance pressure and disruptive technologies.
And so the banking industry challenges can be resolved by some technology that causes disruption. The causes are,
- Increasing competition
- A cultural shift
- Regulatory compliance
- Changing business models
- Rising expectations
- Customer retention
- Outdated mobile experiences
- Security breaches
- Antiquated application
- Continuous innovation
The majority of this cause is due to the threat posted by Fin Techs, they target some of the most profitable areas in financial services.
And so many new industry entrant’s are forcing many financial institutions to seek partnership or acquisition opportunity to measure.
In order to maintain a competitive edge, traditional bank and credit union must learn Fin Techs. A cultural shift
In the digital world, all the bank uses technology to manipulate the work. So that there is no room for manual workers.
So it is always an important thing for all the financial organisations to get into the way the competitors are doing and make it sure worth of it
This is caused due to technology first attitude of reflective of larger industry-wide acceptance of digital transformation.
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Regulatory compliance has become one of the most important problems in the banking industry as a direct result of the dramatic increase in regulatory fees and earnings.
Overcoming the regulatory compliance challenges requires bank and credit union to foster a culture of compliance within the organisation.
Changing business models
The banking financial way best changed because of the way they do the business.
The increasing cost of capital combined with low-interest rates, decreasing return on equity and decreased proprietary trading.
The changing demand is a failure in financial institutions must be structured for agility and prepared to pivot when it is necessary.
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Nowadays customers become so smarter, as they are informed before and expects a high degree of personalization and convenience for banking.
When the generation of banking understands they go for digitalisation technology.
Issues and solutions
- Going the extra mile
- Moving customers from satisfied to loyal
- Creating a customer experience culture
- Building trust
- Increasing products per household
- Thinking Omni channel
- Nurturing small business
- Connecting with customers on terms
- Creating a sales culture
Most customer complaints risk
- Excessive/hidden fees
- Bad customer service
- Checks/funds bouncing
- Most expensive debits charged first
- Loyalty means nothing
- Mortgage/loan issue
- Huge errors