AS clients are demanding “hyper-personalization,” a financial consultant believes local banks must adapt cloud-computing technology to scale up operations and make customer experience (CX) more engaging.
According to Ernst & Young LLP Financial Services Partner Anurag Mishra, the banking industry is ever changing as customers are demanding “hyper-personalization” that requires new technologies.
“Today is the best time to shift from a technology perspective because the number of options to deliver on customer experience is pretty huge and ‘Cloud’ [technology] can solve specific problems,” Mishra said during a conference organized by Swiss banking-software developer Temenos AG.
Rishi Sarin, Temenos’s executive for its Asean business, cited an Accenture Plc report that shows Cloud-adoption increased twice last year compared to 2021.
The study, likewise, reveals that 94 percent of respondents from the banking sector indicated that half of all their banking business and technologies will migrate to the Cloud—the distribution of services over the Internet—in the next three years.
This trend is giving rise to new business models like embedded finance or Banking-as-a-Service.
“There are currently huge investments by Cloud providers in the market so when we offer it as a service, it’s not only the reliability that comes in, but we can also provide security, stability and resilience,” he said.
The forum highlighted that regulations are no longer restricted to risk management, but more encouraging to innovations such as new e products for the Cloud computing technology landscape. Given this, regulators are putting some pressure on banks to look for better offerings for the industry.
Temenos is also pushing for “Lifestyle Banking” that has three components: onboarding the customer; CX; and, Artificial Intelligence (AI).
According to Temenos, the first component “promotes quick and error-free processes like scanning and gathering information in less than 90 seconds. CX, meanwhile, forms the “servicing part.”
The firm believes can leverage the third, AI, considering their vast collected data to give better advice to clients.
