Can Corporate Banking be as Easy as Ordering Pizza?
ACI recently hosted Greenwich Associates on a webinar to discuss corporate banking. While not a topic that would usually make attendees salivate, the discussion turned toward ordering pizza (maybe, because it was close to lunchtime) and Greenwich highlighted how corporate banking should be as easy as ordering pizza.
This segment touched upon all 4 market forces that are shaping banking.
Source: Greenwich Associates
Now let’s open the pizza box…
Greenwich used Domino’s pizza to illustrate this example – a company that has put a strong focus on the customer ordering experience and convenience. More than half of its customers ordered from their mobile device back in 2015, and that same year, Domino’s introduced “The Easy Order” in the United Kingdom, a mix between the Internet of Things and the “Easy” button from Staples. Domino’s has also introduced a “tweet for pizza” campaign – essentially ordering pizza via a tweet.
This is just one innovative company’s way of opening up channels and making it easy for their customers to buy from them. The analogy could easily have been “Dash” buttons from Amazon, ordering an Uber, or streaming content from one of the many on-demand services on the market today.
The pizza analogy within our corporate banking webinar looked at the ease of doing business and the consumerization of corporate banking. Now, compare your most recent corporate banking experience. How hard was it to get in touch with a relationship manager? How difficult was it to make a payment? How many channels were there and how easy was it to engage with the bank?
And now imagine if that bank delivered its next digital feature before you knew you wanted it? (IBM’s recent patent on mood-sensing coffee delivery drones comes to mind). This type of insight brings us to “intellectual capital.” Intellectual capital is threatening to separate the big banks from the regional and smaller banks. However, smaller banks can compete against the Tier 1 institutions by leveraging data analytics to identify the best sources of growth. These data pools can be mined to incorporate unstructured customer feedback, which in turn is fed back into product development and improving the relationship.
Greenwich Associates highlighted one key trend they are seeing in the marketplace: Process digitization. This is not just a slick user interface on the client portal, but rather extends into the back office for easy digital onboarding, and an easy digital credit process. It’s not just the technology stack that is being digitized, but also the mindset and the opening up of banks: One example is exposing data and analytical tools to relationship managers, who can in turn provide actionable insights to clients.
There were polls conducted during the webinar that validated the theories presented. Of the respondents rolling out a new user interface to corporate clients, 43% plan to do so in the next 12 months. Of those that introduced a new user interface, 14% did so within the last six months. The validated theories go beyond the digital banking platform and speak to a move to “open the banks,” with 63% planning to introduce APIs as part of their digital channel solution within the next 12 months.
New, easier to use UIs – and the opening up of banks – will make banking easier, more valuable, and in the long run, more profitable. If we hopped in a time machine and went back to 2015, how many people would have envisioned this rapid and significant market adoption? Is banking going to be as easy as ordering pizza?
I’d encourage you to grab a slice and watch the webinar to learn more about the four forces shaping banking.
Related Blog Posts
Open Payments Systems for Merchants: Don't Close Down Your Options
Remember “Open Systems”?
It was a big industry nom du jour in the 80s and 90s. Every IT system had to be open and therefore flexible and future-proof. Nobody can argue with the logic behind this; making systems easy to integrate with other systems, ensuring vendors could cooperate with one another; creating agility to improve time to market and drive down costs.
Building Trust in Open Banking with Behavioral Biometrics and Machine Learning
Strategies for fraud prevention in payments are having to evolve quickly, as new technologies emerge and digitalization of the banking ecosystem continues at pace. I spoke with Giselle Lindley, Principal Financial Crime Consultant at ACI Worldwide and Tim Dalgleish, Head of Threat Analytics, Asia Pacific at BioCatch to understand how financial institutions can use payments intelligence to build trust in this challenging environment.
Why It’s Time for Women to Rise UP
As a senior software engineer at ACI Worldwide, Rawan Shawar helps to guide her team’s priorities and enhance processes at both the team and organizational level. Recently, Rawan was selected by the organizers of Money20/20 Asia to be part the Rise Up Class of 2019.
Can Digital Payments Be Kind?
There is no doubt that the era of less (or minimal) cash is truly upon us. According to the Access to Cash Review, cash could fall to just 10 percent of all payments in the UK within the next 15 years.
Other countries, such as Sweden, have already seen significant changes – cashless payments have grown so quickly that only 10 percent of the 20 SEB banks in Stockholm now hold cash. Beyond Europe, China is leading the way with USD$12.8 trillion in mobile payment transactions in 2018.
Knowing New Customers – And How Shared Data Helps in Fighting Fraud
As the eCommerce industry continues its rapid growth, the lines between physical and digital shopping are becoming increasingly blurred. These changes are creating a number of challenges for merchants, not least around customer visibility and fraud prevention.
Reducing Fraud and Improving Customer Experience with Machine Learning
Julie Conroy is research director for Aite Group’s Retail Banking practice and covers fraud, data security, anti-money laundering, and compliance issues. Recently, Julie teamed up with ACI’s Marc Trepanier for a webinar, Key Trends in Payments Intelligence – Machine Learning for Fraud Prevention. I sat down with Julie to get her take on the topic.
Why Non-Functional Requirements Should be a Few of Your Favorite Things
It’s not unusual for me to be questioned by retailers as to why some payment solutions are priced differently or more expensively than others – in fact, it would be unusual not to be asked those questions when dealing daily with procurement and finance teams of major multi-national multi-channel merchants!
Keeping Up With Fraudsters: A Month Isn’t Enough
As the Government of Canada campaigns for improved fraud prevention and awareness this month, I’d like to do my part as a fellow Canadian, and shed some light on why payments need to stay a step (or more) ahead of fraudsters, today more than ever.
Local Perspectives: Real-Time Realities Across Asia-Pacific in 2019
Money20/20 Asia returns to Singapore this week, attracting payments professionals from around the vast APAC region – and beyond. The real-time and open imperative is one of the reasons why all eyes are on Asia-Pacific when it comes to payments, so I caught up with ACI payments experts representing three of the key countries within the region, to take the pulse of real-time schemes that are in varying stages of maturity.
What it Takes to be an ‘Influential Woman in Payments’ [Q&A]
Coming off the back of International Women’s Day this past weekend, PaymentsSource has recognized the Most Influential Women in Payments, spanning multiple industries including financial services, retail, investment and technology. Among the honorees is ACI’s very own Carolyn Homberger, group president, global sales. Part of the executive leadership team at ACI, Carolyn leads a team of payments professionals operating across all global regions, and plays a critical role in setting business strategy. As an advocate for the leadership and growth of women in the payments industry, Carolyn is also responsible for launching ACI’s own Women’s Initiative.