Intellect Global Transaction Banking (iGTB), the transaction banking and technology firm, has pledged to redefine commercial banking through composable, contextual and hyper-scale technology. At Sibos 2022, it launched Consumerisation of Commercial Banking (COCB).
According to iGTB, as banks assess their future strategies, they need to define their purpose and set a course not just for modernisation but for true transformation. It defines this next evolution as the COCB.
Consumerisation is the emergence of the individual consumer as the primary driver of product and service design and COCB is the impact of an individual consumer’s wants, needs and behaviour on commercial banking products and services.
iGTB has picked six key principles to COCB that banks ‘need to understand’ and have a game plan for:
- Hyper personalisation – The first tenet deals with treating each customer as if they are the only one, a segment of one. Use of extreme personalisation not only boosts customer experience and enables trust building but also has a beneficial influence on net revenue and lowering of cost.
- Real-time, connected journeys – Any outcome that a user is trying to achieve is actually made up of a number of journeys that are more connected than one might imagine. Embedding the right technology enables customers to present their context only once which can then propagate to each service provider in the entire journey.
- Action-triggering Insights – In the continuum of serving Information, offering analytics, enabling decision-making and executing transactions (the IADT paradigm), mere provision of information or acceptance of readymade instructions to execute in an order taker manner is passé. Banks need to operate on the sophisticated end of this spectrum where they use analytics to enable decision-making and then execute the transaction.
- Immediacy – Recommending actions is good. Driving urgency and having them executed immediately, in a risk free manner, is better!
- Desire & trust based decision-making – The two most important factors a consumer uses to make or rationalise a decision are a) desire in the product or service and b) trust in the provider. Desire and trust have relevance not only at the point of sale but also during the entire lifetime of the relationship. Banks need to address both these elements with their offering set.
- Friction-free experience – even at scale – The consumption pattern in the world of consumers is not uniform. There are points of inflection where scale explodes significantly. However, the end user would accept no compromise on his/her experience being friction free – even at scale. Having the right kind of technology architecture to address this is key.
Manish Maakan, CEO, iGTB said, “Commercial banking is on the verge of a major upheaval that will significantly alter their technology roadmaps. Modernisation alone will not suffice. Banks should plan for a future that welcomes rapid change while catering to unprecedented customer demands.
“We are pleased to launch Consumerisation of Commercial Banking which will enable banks worldwide to not just digitally transform, but compete effectively in the new consumer-driven economy.”
To embrace COCB, iGTB recommends three steps comprising a) contextual design b) an architecture that is built on composable, contextual and hyperscale technology c) and an offering set that comprises products, solutions, platforms and banking-as-a-service capability.