By Alenka Grealish, Principal Analyst - Retail Banking
Thanks to the confluence of technological advances, bankers can break the mold and reinvent small-business banking, replacing the 20th century’s industrialized approach with the 21st century’s personalized one. The winners over the next decade will not look like today’s banks. Beacons of the 21st-century bank are achieving step changes by delivering digitized, easier financial workflows and simple, smart analytics. A few are exploring game-changing value propositions by applying AI (artificial intelligence) at scale to personalize customer engagement and deliver actionable advice.
To realize this reinvention, bankers need to undertake three initiatives. First, they should rethink small-business banking economics to overcome historical constraints and trade-offs. Second, they need to reframe their value propositions, moving from nouns (products) to verbs (services that support customer workflows and promote financial wellness). Third, they must effectively harness the technologies required to deliver on the new value proposition: digitization, data analytics and artificial intelligence.
Read more via the International Banker.