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Helping banks close the value gap and regain customer trust

Malcolm Ng, Director for FSI at Cisco in Singapore | July 29, 2015
Banks should leverage the Internet of Everything (IoE) – the networked connection of people, process, data, and things – to close the value gap.

These IoE solutions resonate with customers globally; more than 60 percent would move their money (i.e., open new accounts, invest assets) to access IoE-enabled advisory services. In emerging markets, respondents are twice as likely as their counterparts in developed countries to be interested in the new banking experiences.

By implementing the five tested concepts, banks can realise bottom-line profit increases ranging from 5.3 percent in Germany to 15.2 percent in China. This is the first step for banks in capturing a much wider opportunity: Cisco estimates US$1.3 trillion in IoE-related Value at Stake for the financial services industry from 2013 to 2022.

According to research firm Celent, the Asia Pacific region will dominate global IT spending in the banking sector in 2015, achieving US$70.3 billion. For financial hubs like Singapore, IT spending by banks is projected to grow rapidly from 2015 through 2018. As banks in this region gear up for higher spending, it is pertinent for them to strategise their spending and implement services that correspond to the needs of the new generation of bank consumers. IoE-enabled solutions will enable banks to close the value gap by reaching more customers with more valuable and relevant interactions and advice than ever before.

However, to implement these solutions, banks must take the foundational step of creating frictionless interactions with their customers by moving from an archaic, paper-based approach to a fully digitalised business process. A strong layer of digital processes coupled with advanced IoE solutions will empower banks to reconnect with customers, differentiate themselves from competitors, and compete and thrive in the Internet of Everything economy.

 

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