Now almost all banks across the globe offer online banking with different capabilities and the competition is intense. With ever-increasing competition, banks have devised new ways to maintain their revenue streams. The core of the idea, however, still remains to offer more value and convenience to the customer. Technology-enabled online banking has opened a plethora of possibilities for the banks to vie for that special place in the wallet of the customer, and online banking now does not stop at basic html pages showing limited information and as a privilege to “high end” customers.
Online Banking platforms have been in existence for more than a decade now and offering online banking is now as good as a commodity. Hence the present focus is not on getting the customers to adopt online banking, but, instead, having the customer adopt the latest technology in online banking. With more and more customers enrolling for online services, the banks are under constant pressure to provide distinctive and unique features catering to niche segments. Technology is an enabler that banks cannot afford to neglect.
Customers (both corporate and consumer) are driving the technology needs of banks. Features like single-window single-sign-on, 24x7 operations, etc. are base offerings for the online channel. Shorter transaction time, account details, bill payments, basic calculators like interest calculators—once value-added services—are now considered standard for online channel. Imaging solutions are deployed in trade finance, as it is becoming increasingly important to store all transaction-related data in electronic format, including paper-based information. This reduces the reliance on paper-based files and allows the bank to have a comprehensive electronic overview of each trade finance transaction.
New age services such as integration with core banking systems, various financial products for integrated view, and security enhancers like digital keypad and mobile authentication are nice-to-have features and could act as a differentiator in customers’ adoption of a particular bank. Supporting WAP browsers and smart phone apps are also high on the agenda of many follower banks and can also be seen as tactical moves to attract more customers to use the online channels. Using popular media like YouTube and Facebook not only educates existing customers, but can also draw in non-banking customers and help the bank penetrate deeper into niche segments transcending geographical boundaries with ease. Similarly, multi-country, multicurrency offerings reinforce the idea of a “global” bank.
Active personalization, rich Internet online collaboration capabilities using web 2.0 technologies, comprehensive account management, and data analytics are all examples of capabilities and services that will drive differentiation, allowing a bank to break free from the competition.
The next generation banks need to exhibit the idea of “people orientation.” Customers can freely customize the information and financial services that interest them. According to a customer’s personalized Internet banking layout, banks can know the potential demands to achieve cross-channel selling and realize target marketing. Web 2.0 also opens up a world of possibility for retail customers, such as communication using social media software.
In terms of advanced analytics and customer orientation, multi-bank reporting using SWIFT MT940 allows customers to analyze daily cash positions across banks. Mobile applications are also growing in popularity. Banks currently offer apps for smart phones and iPhones. However banks that focus on app development and compatibility for android phones, various Palm devices and also utility and entertainment apps for devices such as the iPod Touch will have a better chance of demonstrating technology leadership.
A plethora of services and how they stack up
Source: http://www.gfmag.com/archives/138-may-2011/11233-technology-enables-feature-driven-internet-banking.html#axzz1NA1C8qQ0
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