Across the globe, banks and financial institutions (FIs) are leveraging advanced AI/ML driven digital banking platforms. These platforms are enabling banks to deliver personalized customer experiences through context and location sensitivity. But to get the most out of a digital banking platform, banks must invest in a system that offers a broad out-of-the-box set of functionalities, a scalable platform, and flexible technology.
Today’s banking technology providers offer a professional approach that helps banks avoid pitfalls associated with building a digital platform. They also provide a wide variety of solutions and services, including mobile, internet, and social banking, to help banks achieve their strategic goals. Unlike traditional application vendors, these providers have experience delivering digital platforms. This advantage gives them a leg up over banks.
However, banks are faced with intense pressure to increase efficiencies and lower costs. They also have to meet evolving customer expectations. They need to choose a digital banking approach that meets their needs and is responsive to changing customer behaviors.
Several new vendors have emerged in the digital banking industry to fill this need. They offer innovative approaches, faster delivery, and customized integration. But these new vendors may not be suitable for banks with complex digital banking solutions. And if their digital banking products are not user-centered, users may not be satisfied with the service.
Several digital banking platform vendors have partnered with conversational AI platform suppliers to improve customer experience. This increase in convenience for consumers might lead to increased demand in the long term. However, it can also cause confusion if multiple providers offer similar services.
Banks also need to ensure that their new digital banking platform is integrated with legacy core banking systems. This can be done by choosing a scalable platform that can accommodate multiple public cloud platforms. It will also reduce operational inefficiencies and provide a frictionless user experience. In addition, a unified platform can support account holders for years to come. The resulting savings will allow banks to concentrate on revenue growth and fine-tune marketing strategies.
While most banks license a wide range of digital products from a variety of vendors, some banks choose to contract with one vendor for all of their digital needs. This can help banks streamline delivery, reduce costs, and provide a better experience for their customers. But if the bank’s contract with the vendor is long-term, it may limit the bank’s ability to respond to emerging technologies.
Another issue that banks face when contracting with multiple vendors is that they are unable to assess performance using data from all of the systems. This makes it difficult to compare data across channels, and can result in inaccurate insight. Additionally, evaluating performance based on data from one system can also lead to incorrect conclusions about the overall performance of a vendor’s products.
One of the key advantages of investing in a scalable digital banking platform is that it consolidates systems, enabling banks to leverage the latest applications. It can also improve user experience through advanced analytics and extensibility. In addition, it will allow banks to deliver a consistent experience across channels.
