{"id":914,"date":"2022-07-26T12:49:18","date_gmt":"2022-07-26T12:49:18","guid":{"rendered":"https:\/\/customerminds.com\/?p=914"},"modified":"2024-04-17T15:56:35","modified_gmt":"2024-04-17T15:56:35","slug":"fight-the-4-cs-with-abc","status":"publish","type":"post","link":"https:\/\/customerminds.com\/fight-the-4-cs-with-abc\/","title":{"rendered":"Fight The 4 Cs With ABC"},"content":{"rendered":"\n
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Can the power of data help banks make a comeback?<\/h2>\n\n\n\n

Bankers are unlikely to feature in any superhero movies anytime soon but the story of Marvel Comics might just inspire them. Marvel and its comic book business went bankrupt in 1996 yet its next owner, Isaac Perlmutter, could see a post-bankruptcy digital future. That future was Marvel\u2019s ink-based superheroes like Spider-Man, the Avengers and Iron Man transitioning to the Hollywood big screen. Fast forward to today, and the Black Widow premiere in July will be just the latest in a string of multi-billion dollar movie hits powered by Marvel\u2019s original comic characters. Banking has no superheroes but arguably it has one potential superpower \u2013 Data.<\/p>\n\n\n\n

Banking was the original data business as far back as the 1970s. In fact, banks in the 1990s were leading the way in data. However, a combination of poor strategic decisions and near-death credit experiences in 2000 and 2008 saddled the banking sector with balance sheet challenges and legacy IT systems. Banks are now playing technology catch-up with digital transformation projects looking to leverage their enormous primary data<\/em><\/strong> resources. However, the route to maximising the digital potential of all this data faces three big hurdles \u2013 or as we like to call them, the 3 Cs:<\/p>\n\n\n\n

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  1. A very low interest rate environment makes it very difficult to grow bank revenues. Unfortunately, providers of capital to the sector continue to demand lower cost\/income ratios. So, in a low-growth commercial environment this means cost cutting<\/em><\/strong> is the go-to management weapon.<\/li>\n\n\n\n
  2. Customer expectations<\/em><\/strong>, on the other hand, have moved on. Digital banks are giving customers a taste of a far superior experience. The new competition do not have to deal with legacy systems and database frameworks. Instead, customers can now experience super-slick services on digital customer onboarding applications<\/a> using the very same data that is sitting inside the traditional banks.<\/li>\n\n\n\n
  3. The final frustration for bank management is that they can see customer demands and expectations rising but their investment budgets have to target far more basic and less-sexy demands. The blunt truth is that the majority of banks\u2019 transformation budgets is now spent on ever-increasing regulatory and compliance<\/em><\/strong> requirements.<\/li>\n<\/ol>\n\n\n\n

    However, just as Marvel movie scripts stack the odds against their superheroes, banking now faces an additional foe in the shape of the 4th<\/sup>\u00a0C! Covid-19 has driven remarkable global healthcare collaboration and an amazingly fast vaccine solution but healthcare is not the only sector moving at warp speed.\u00a0 The pandemic has massively amplified and accelerated digital transformation across large parts of the global economy. The urgent commercial reality is that\u00a0Digital<\/em><\/strong>\u00a0Customer Collaboration<\/em><\/strong>\u00a0is an essential tool for most businesses, including banking. And whilst most Banks may have launched their flashy new Mobile Apps, these are typically focused on day to day banking needs and not on more complex customer journeys or other digital channels.<\/p>\n\n\n\n

    Urgency and speed have become the focus due to Covid and we believe this has shifted banking transformation strategies in the following ways:<\/p>\n\n\n\n