Banking the next generation: How engaging is your platform

Banking the next generation: How engaging is your platform

Banking the next generation: How engaging is your platform

Dashboard and Internet Banking

By Hassan Akmal

As banks are increasingly moving towards specialized solutions to meet complex client needs, there is a need to redesign the channel solutions/architecture. Many IT vendors envisaged this change and are building solutions for the future in the form of a comprehensive channel platform offering.

Internet banking channels are widely used by corporate /retail customers in the current environment. The technology revolution in mobile in the recent past is slowly paving the way for mobile banking to overtake Internet banking as the preferred channel and is also enabling customers to access the Internet over a mobile/platform. In the retail banking space, apart from using the mobile to make routine balance/transaction enquiries customers are also utilizing it for fund transfers, domestic/international payments, and utility bill payments. With the Internet being accessible over a mobile platform thanks to advanced technologies, more and more customers are moving towards mobile instead of Internet banking platforms.

Some of the corporate banking solutions provided by vendors for Cash Management and Trade Finance come with a customer front end and accounting /processing back office piece. The need for Internet access along with a trading portal among companies availing of Treasury services from banks has given rise to a customer front end requirement in Treasury. Corporate Loan Origination is another area where integrated front/back end solutions are already in use.

“Niche banking services: It’s the icing that matters” as well. Banks have identified 2 key factors for which, it is important to acquire these young users and acquire them soon. First, the segment represents a sizable business opportunity and is an extension of the bank’s existing customer base, thus reducing the bank’s effort and cost associated with customer acquisition. Secondly, acquiring these customers at a young age allows the bank to invest in a long-term relationship. This is easier said than done though.

A lot will depend on the bank’s ability to understand the distinct demographic and behavioral characteristics of the young customer and use it while formulating their product and engagement strategies. For instance, mobile platform is steadily emerging as the preferred engagement platform for the youth. The dominance of mobile in financial transactions has been revealed by a survey done by Accenture consulting where they found 41% of the banking users in the age bracket of 18-24 using their mobiles for checking balances. KPMG cites that the lines between banking and the digital world are blurring and predict that they will soon disappear altogether (Refer this article). With these young users showing an increasing propensity to consume digital services via mobile phones only, I believe an app based UI will be ideal to offer such financial services to the youth.

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  • Enquire about current limit utilization sanctioned by the bank and initiate the opening of new documentary credit through the Trade Finance portal

  • Create a new structure for pooling funds or linking/delinking one of the accounts in the existing structure

  • Access the trading platform for buying/selling securities through the Private Banking/Treasury solution
  • Place a new overdraft request with the bank within an overall omnibus line of credit already sanctioned to the customer.

  • Banks can simultaneously offer better customer service and reduce operational risks and meet compliance standards and regulatory norms.

  • By componentizing the database and rule engine for different banking domain and modules

For each of these transactions, the workflows need to be designed in such a way that when the customer initiates the transaction through the Internet, processing and settlement/accounting happens at the core back end. There needs to be seamless integration between multiple solutions in different platforms. It could also happen that a transaction initiated through the Internet is processed through multiple processing solutions before settlement/accounting happens in the core back end.
When corporate customers expanded operations the dependence on the Internet with multiple log-ins and portal access for Trade Finance, Cash Management and Treasury became a necessity. A corporate entity requires a solution with a single log-in to access different applications covering all the requirements and a dashboard to provide a consolidated view/position. This should seamlessly connect with various gadgets used by a corporate executive to approve transactions as and when required based on hierarchy defined in the system. When a single current /operative account is tied up with all processing solutions, a single consolidated view is possible. Because of the nature of business and specialization offered by different banks, corporate customers may prefer multiple bank accounts. A comprehensive channel platform and linkage to multiple bank accounts and solutions with seamless integration is required. This needs to be designed to cover security elements / data integrity /data segregation as part of integration.

Resource Allocation

The next set of technology challenges revolves around building a comprehensive internet offering with a single sign on with different subsystems /portals linked to the same, and an automated update, status check and view wherever required, with data segregation/integrity. Though corporate customers can provide restricted access to their concerned staff handling these operations, from a management dashboard perspective, a consolidated view for managing and utilizing the funds is critical.

A dashboard on the enterprise platform which updates on a real time basis based on the transactions initiated in any of the applications is required.  The integration elements /workflow need to be redesigned for smooth processing and accounting connecting all the channels/sources and back end/core systems wherever necessary.

The solutions developed by some of the IT vendors are under implementation and are awaiting market acceptance and penetration in this space to strengthen. However, IT vendors need to provide a solution which is integrated, comprehensive and more user friendly to the corporate customer, considering the banking and nonbanking requirements across the entire financial ecosystem. In a fast moving world, business processes demand a quicker turn-around time, and hence data available in a snapshot view would help to enhance decision making capabilities. The same model can be extended/ adopted through a mobile banking platform with Internet enablement.

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2018-09-30T10:24:58+00:00 December 9, 2016|

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