Return On Investment is not a black and white topic around software, especially regarding digital transformations within Banks and Credit Unions. In addition to direct impacts noticed, there are many indirect financial benefits that can be realized. For now, let’s focus on the trackable and measurable impact on ROI…
Resource Type: White Paper
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
The three co-hosted sessions brought together 100 plus delegates to hear experts from across the industry deliver insightful presentations and participate in in-depth discussions. The aim of the seminars was to examine in detail the options for financial services firms as they reshape their business models and reinvent their technology approaches in response to digitalization.
Since January 2018, when the revised Payment Services Directive (PSD2) came into force, the concept of open banking has become a reality. This has made it possible for new competitors to enter the fray, offering innovative products and services and excelling in customer experience and intensifying the pressure on established banks to leverage the data they possess to match the customer engagement levels achieved by the new entrants.
To stay relevant, financial institutions now need to execute their strategies for responding to this fundamental market change. They must implement the new business models on which they are betting their futures – along with the technology architectures required to support them.
At the time the Finextra/Temenos sessions took place, the new world of open banking was fast approaching, and attendees’ minds were clearly focused on achieving compliance, fending off new sources of competition, and making the most of the opportunity presented by the changes: to deliver a better service to their customers, and to drive revenue growth for their own businesses.
In this context, the three seminars examined in turn the role of cloud computing within a digital strategy, progress by financial institutions in harnessing data and analytics to improve customer experience, and options open to them to reinvent their business models for open banking.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
The online onboarding process is the first customer experience your business prospects have with your institution, so the experience has to be positive. This guide will help you understand how to build an optimized online business customer onboarding experience and get it to market fast—based on lessons learned by banks that got it right.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
Credit unions, also known as savings and credit co-operative societies (SACCOS) or financial co-operatives, make a hugely important contribution to social and economic development. Unlike many financial market interventions over the past 30 years aimed at increasing access to financial services, credit unions monetize local assets and distribute them to qualified borrowers. Local distribution is fundamental to local economic sustainability.
These community-based, co-operative financial institutions have been operating in emerging markets for at least 50 years and have become local institutions. The relationships they have built are real and tangible, including teaching financial literacy, thrift and investment in community. This is important because their work leaves a positive long-term legacy to members, members’ families and the communities in which they live.
Historically, they have been found in rural and remote areas of many emerging economies and are often the only financial institution available to the community. Private, member-owned, they offer high social value by keeping the economic benefits of their lending activity within the community – all profits are returned to members and/or are reinvested into the communities in which they operate.
Credit unions arose to provide the common person with access to financial services and a self-help alternative to predatory money lenders. Credit unions still have a role in providing lower-cost access to financial services and an ethical alternative to predatory lending via easy-access payments
Brian Branch – president and chief executive officer of the World Council of Credit Unions
In most developing countries, credit unions are the predominant providers of external financing for micro, small and medium enterprises (MSMEs), which contribute up to 33 percent of national income and create four out of five new jobs, according to the World Bank.
In Kenya, for instance, SACCOS has been reported to contribute more than 45 percent of gross domestic product and it is estimated that at least one in two Kenyans directly or indirectly derive their livelihood from these co-operative organizations. In Tanzania, cooperatives (including SACCOS) contribute about 40 percent to the country’s GDP and employ 94.7 percent of school leavers every year by financing SMEs, the majority of which are located in rural areas and wholly depend on the co-operative system for external financing.
The challenge faced by credit unions today is the ability to scale and retain their community-based attributes.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
Over the next 10 years, a new banking business model will emerge: the banking platform.
In this context, a platform is: “A plug-and-play business model that allows multiple participants (producers and consumers) to connect to it, interact with each other, and create and exchange value.” Successful platforms attract both producers and consumers, match producers with consumers, and provide seamless integration among participants.
Download this free white paper, written by Ron Shevlin, of Cornerstone and Gonzo Banker, to learn more.
Download the white paper today to find out more:
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
Acquiring new account holders is widely known to increase revenue and support the growth of a diversified portfolio. While attracting more account holders is necessary, financial institutions can also benefit from expanding their relationships with the existing pool of one-time account holders, or those who only maintain one or two product relationships.
Like many financial institutions, you may be faced with the struggle of converting your account holders with only one or two relationships, to account holders that hold three products or more at your institution. Your organization may find cross-selling effectively to single-transaction account holders challenging at times, but addressing this problem through an approach like the scientific method can clearly establish the steps needed to define the basic method, guidelines, and system by which we originate, refine, extend and apply knowledge.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
The “farm to table” movement has grown in popularity in the culinary world as consumers have gained an appreciation for the health and economic benefits of serving fresh, locally-sourced ingredients. There are many parallels between a successful indirect merchant lending channel and the “farm to table” concept. Throughout this article we will investigate methods for cultivating that merchant lending channel.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
Celent evaluated banking Omnichannel Customer Acquisition vendors and identified the leaders based on functionality, technology, and service.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
The collection sector has come a long way since the global financial crisis of 2008 caused record levels of “bad” loans, leaving financial institutions struggling with the consequent chaos.
Few financial institutions have been looking at how to use the technology available today to prepare for the future and improve their processes, their service, their risk management and their bottom line. They are failing to use this brief interim to get ahead before they fall behind.
This white paper examines the collections practices and technology of the past, present and future – inviting banks and credit unions to imagine the possibilities as they cultivate a healthy consumer base and prepare for the challenges and triumphs of tomorrow.
ROI of Digital <br>Banking
Forward-thinking and the
Right Technology Can Drive Success
Cloud computing, which in the most basic of terms offers unlimited computing resource as a service on a pay-per-use basis, is proven to directly translate to less upfront, capital expense and reduced IT overheads, offering a cost-effective, simple alternative to accessing enterprise-level IT without the associated costs.
Recognizing the value of cloud computing, Temenos has made a significant investment in its products to ensure they run natively on the Microsoft Windows Azure platform, Microsoft’s cloud computing environment.
This development not only makes Temenos the first technology provider in the world to take a complete banking system to a public cloud environment but puts into practice the real value cloud computing can bring to the financial world.