The Threat (And Opportunities) Facing Banks Today

The many and old systems of record: Some banks are making major investments (in the billions) in modernizing and federating systems of record to unlock the extraordinary customer data value – giving us a glimpse of what leaders are doing (and what fast followers and others will need to contemplate) to respond to customer dynamics. New systems of insight: Some banks are making early investments in artificial intelligence and machine learning to intelligently harvest and employ the treasure trove of customer transactional and behavioral data. These banks realize gains now and put in place systems that continuously learn and improve experiences. New systems of engagement: Banks are faced with a diminishing relationship equity that threatens growth, but the answer is not more human touchpoints for customers increasingly seeking digital engagement. Rather, leveraging investments in systems of record and systems of insight, banks will implement intelligent, predictive services that can deliver just-in-time value to customers – whether that is video chat, conversational interfaces, or intelligent agents – that exploit technology to help form more valuable, stickier relationships.