Threats to Traditional Banking

Digital Transformation

• Through increased online and mobile options that offer immediate and easy access, Gen-Z is shaping the future of banking. This poses a challenge to traditional bankingwhere you need to be quick to market, providingsolutionsacross your organizationto address business problems efficiently.

• Embrace innovation in your institution by leveragingtechnology to maximize existingprocesses and procedures. Invest in digital engagement tools to ensure long-lastingrelationships with customers. Remember that consumers will gravitate towards institutionsthat are the easiest to work with and have deployed user-friendly and adaptable technologies.

Increased Competition

• The rise of Fintechs pose another challenge to traditional banking. These revolutionary start-upshave gained significanttractionby evaluatingcustomer demands and respondingwith tailored products and resources. Consumers prefer to do business when their life is made easier with user-friendly technologies.

• Look at Fintechs as potential partners rather than competitors. Embracingthis technology will improve your customer retention and attract new customers as well. Collaborating(rather than competing) will provide you the opportunity to capitalize on cuttingedge technology that will meet the tech-savvy user demands. Through a partnership, your institutioncan significantly reduce structural costs and provide employees more time for buildingrelationships.

Cyber Breaches

• Access to increased bankingtechnology means there is more opportunity for breaches and scams. However, institutions cannoteliminate all possible sources of cyber threats.

• Employ effective security tools, or the right partner, to limit the vulnerability of entry points from potentialattacks. Leverage solutions that address advanced analytics, real-time monitoring, AI, and identity verification.

Cloud Technology

• More and more applications are beingwritten with cloud-based technology. Implementingcloud technology providesfor the elimination of on-premise hardware / software, allowingyou to focus on banking. It also gives financial institutions a seamless path to disaster recovery. Self-service technology such as chatbots can assist banks with customer service in this new environment.

• Embrace technologies such as Alexa or Google Assistant thatare startingto act as virtual bankingconcierges. This means your customers will use smart devices to access their financial informationwhere you were once the main source. Embracingcloud technologies will free up resources, allowing you to focus on your main business: banking.

Compliance

• This has become the most prominent industry challenge due to the steep increase in regulatory requirements. It is no secret that compliance can significantlystrain resources, often involvingtimeconsuming processes that require you to compile and analyze data from divergentsources.

• Create a culture of handlingcompliance through technology that collects and mines data, performs indepth data analysis,and provides insightful reporting. This is crucial for identifyingand minimizing compliancerisk. Take an inventoryof your product mix to determine that you have the right solutions in place.