Commercial Banking was developed keeping in mind the different technological requirements of enterprises and entrepreneurs. A survey was conducted for both retail and commercial banking users who voiced their opinion that commercial banking has been lacking the required innovation and adoption of new technologies. There has been a constant demand for the change in the underlying technology that makes the commercial users adopt the legacy hardware and software.
The recent survey was conducted for commercial users and asked to rate why commercial banks are not adopting new technology? 45 percent of the users believed that the market has settled down currently and no new competition will be coming, 28 percent felt that the banks are getting no financial incentive to implement the innovation. While 3 percent felt that the current regulation is also causing a barrier for the banks to implement the technology for the commercial users.
Banking executives who are currently handling the commercial clients say that there is an immediate need of revamping the total customer experience. During the survey, many commercial banking users selected multiple options they wanted to see being implemented in the commercial banking space. The need for innovation in commercial banking that adopts technology to provide a seamless experience to the users.
In the survey, almost everyone- 97 percent of users wanted a commercial banking app for daily usage. Nearly 72 percent of the respondents stated that they wanted an integrated mobile wallet for usage. Chabot’s and the virtual assistant were imperative for 72 percent of the users, while 59 and 69 percent of the users demanded the access technology like facial recognition and fingerprint technology respectively. The need for responsiveness is an important functionality commercial banking users wanted to see, a 24/7 support for all banking features.
As technology will be disrupting the banking sector the underlying innovations and applications should be regulated and secured. The recent technology whitepaper dealing with solutions for banking sector technology requirements can assist you to define your goals.
PRIORITIZING THE TECHNOLOGY EFFORTS:
Commercial banking executives are pushing towards mobile and digital technology. Even emerging technology trends such as Artificial intelligence and Machine learning are being exploited as an opportunity. But very few commercial banking practical applications are to be seen in 2018.
To disrupt the consumerization of the commercial banking the need of API is seen as imperative. The plug and play model of the API makes it easy for commercial users to attain different services and products.
If the banks want to develop the given products in-house or outsource would depend on the application usage and RoI of the product. The need for real-time expenditure data will be a part of the procurement process that needs to be implemented for commercial use. The need for CFOs to manage their finances improves the spending efficiency and using the working capital loan works for the given period of time.
However, many of the commercial banking executives have shown resistance to transform the back-office operation. A digital transformation won’t be possible without modernizing the legacy platforms that are constantly acting as a barrier due to low computing power and networking constraints.
HOW TO TAP INTO THE SOLUTION PROVIDERS FOR THE COMMERCIAL BANKS?
Collaboration is part of developing a commercial banking space that can disrupt the sector. Developing a digital capability in-house can be cumbersome and even require a large investment to change the total legacy environment. This might lead to an interruption in the current services so collaborating with a technology enterprise will help you advance your banking as well as security.
You can also go through different whitepapers of the enterprises to understand different technological solutions. The whitepapers thoroughly cover the innovative technology for commercial banking.
