“Emerging markets in Asia, in particular, have recently seen a spike of 60% increase in contactless payments, with an eightfold growth in paperless B2B payment flows.
McKinsey says this physical-to-digital shift is set to accelerate even more this year. And FSI organizations need to ride the wave, or risk being left behind.
Fundamentally, I see four areas of change that FSI firms need to embrace: technology, data, customer centricity supported by processes, as well as people and culture to drive systemic innovation.
According to Deloitte, technical debt in the form of legacy infrastructure and data fragmentation across the enterprise continues to impede banks’ digital transformation initiatives. In response, finance leaders expect to increase cloud investments, with more than half saying that their firms will increase spending on data analytics.”
“Back in February, areas around the country were severely impacted by inclement weather. In Texas alone, 3.5 million people went without power for several hours in freezing temperatures. With frequent power and internet outages and most people still working from home, credit unions across the U.S. struggled to operate and meet their members’ needs.
AI is being used by credit unions to streamline and optimize call centers. Whether it is to instantly respond to calls from members, create more self-service options or free up the bandwidth of call center staff to support members in need, AI can be utilized by credit unions to better meet the needs of members.
With AI solutions hosted on the cloud, credit unions can offer uninterrupted services to members, enabling members to get their issues addressed even during the most vicious storms.”
“The banking and fintech industries compressed roughly a decade of ecommerce innovation into a 10-month span.
Advancements that were estimated to be years out may now emerge as the “new normal” within months. The future of banking will not only look different in regard to more rapid digital adoption, but also in terms of service offerings, who offers them and the relationships institutions have with one another and their customers.
6) Micro-Personalization. Big data and AI-driven analytics bring about a new paradigm in financial services, one in which the bank will treat every customer as if they are its single greatest priority. Instantaneous borrowing, proactive product suggestions, detailed guidance on purchases, budgetary recommendations based on factors like real-time location, spending profile and much more are poised to be the new standard for financial institutions’ approach to customer personalization.”
“Avant is following the lead of other alternative lenders that have tied up with banks to increase profitability or expand into new credit products.
LendingClub’s recent acquisition significantly reduced its cost of funds. By buying Radius Bank, the alt lender reduced its borrowing costs by 90% from the previous year.
SoFi’s forthcoming transaction allows it to offer new lending products. The online lender’s recent purchase of Golden Pacific Bancorp is already enabling it to expand its credit solutions into new areas: SoFi launched its first-ever credit card alongside the acquisition and subsequently added auto refinancing to its growing lineup.”