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Can today’s banks become the ‘Bank of the Future’?

Why are so many banks yet to develop a real-time, digital customer engagement offering when there is an acknowledgment of the importance of this capability? The key challenge lies in legacy systems, with nearly all banks (89%) mentioning the challenge of overcoming their legacy systems as a barrier against omni-channel engagement. The high cost of implementation (89%) and lack of suitable technology (75%) were also seen as hindering efforts to become truly digitized.

Barriers_to_engagement

Beyond the innovation and investment needed to change legacy systems, Oracle blames the banking industry’s defensive mindsets, with banks focusing on preventing customer defection, complying with legislation and reducing the cost base, rather than actively seeking growth and improvement. Currently, retention of customers is prioritized above revenue as the key impetus to digitization, with 83% claiming customer loss as a prime motivator.

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Author avatar
Arvind Lakshminarayanan

Arvind is the editor-in-chief of Big Data Made Simple. He is also a content specialist at Crayon Data.