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Fast data and the digital bank

Kevin Pool, CTO, TIBCO Asia | June 16, 2015
With increasing connectivity, data should not just be bigger, but faster and smarter as well.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Kevin Pool of Tibco
Kevin Pool, CTO, TIBCO Asia

Customer relationship management in the Banking, Financial Services and Insurance (BFSI) sector has evolved, with the primary interaction between the institution and its customer no longer occurring with a physical interaction through a teller or even an automated teller machine. Online and mobile banking are now the most frequently used mechanism. Recent technological advancements such as near-field communication payments will be key drivers in transforming the BFSI sector and customer interactions of the future. The mobility of customers has presented banks with a new challenge: providing customers with swift, interactive, and accurate services on the go.  

Gone are the days where lifetime or long-term loyalty to one particular brand can be assumed. In the digital age, customers are able to access information anytime and anywhere-customers are now able to read positive reviews of competing brands online or be enticed by a more interactive and engaging website. The inhibtors to switching brands have been significantly reduced, with Digital Enterprises providing simple and quick enrollment for new cusomters. Banks must now be constantly ensuring that they are not only delivering outstanding services, but also providing current updates and relevant information to their customers.

Digital Banking in Asia Pacific
Findings from a recent survey found that the adoption of digital banking services has soared across Asia since 2011[1]. Previously, face-to-face communication was the only platform in which customers are able to reach out to financial institutions, but now, there are many other channels to choose from such as web and mobile self-service through the use of computers, smartphones, and tablets. The modern consumer is very comfortable with performing a quick internet or reaching out on social media before they enroll or purchase. Enterprises with good reviews can very rapidly gain market share, and the opposite scenario is also very true.

The proliferation of phone and Internet banking has enabled banks to understand their customers better by surveying their habits and preferences. The gathering of this information is critical as they form the foundation for banks to analyse the data and take the right proactive action at the right time. The explosion of data for both banks and customers has contributed to an abundance of opportunities, as well as potential pitfalls. The expectation of receiving a customer-specific response immediately, rather than a generic response later from one's bank, has resulted in a drastic rise in customer experience-related issues.

Handling Data Sets 
A report on global digital trends predicts that the global volume of data will increase from 130 to 40,000 exabytes by 2020[2]. This can potentially create immense discomfort for the service provider who is unprepared to meet the demands of the modern customer.  Increasingly, banks are turning to data collection and analytics tools to enhance their daily engagements with customers. Another research report found that more than 85 percent of the largest 250 Asia Pacific banks will use Big Data analytics for customer marketing activities by 2015[3].

 

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