SAS UK ’ S POTTS DISCUSSES THE LEGACY BANKING CATCH-UP
“ The question then shifts to , ‘ is the product helping users achieve their desired outcomes ?’. Success metrics used to track the customer journey include acquisition , activation and engagement .
“ All three hold importance , but measuring engagement often isn ’ t the main priority for challengers , as their products are designed to be used for a specific purpose and for
SAS UK ’ s Lousie Potts gives her take on the growing trend of legacy banks initiating digital transformations , as they attempt to play catch-up with growingly popular neobanks .
She says : “ Both neobanks and incumbents are increasingly turning to fintechs to solve problems , with banking leaders recognising that making use of a network of integrated fintech solutions is more cost-effective than building the functionality in-house .
“ Research published earlier this year found that around 75 % of banks plan to engage with an average of three fintechs over the next 12 to 18 months , recognising they cannot operate in this challenging environment by working alone .
“ This decision makes sense , as it frees up a bank ’ s own internal resources to focus on ‘ business-critical ’ functions such as anti-money laundering ( AML ) checks and reducing fraud . We will likely see a continuation of this trend , as incumbents look to close the gap created between them and neobanks , removing siloed data and providing customers with an improved level of service .”
With this in mind , the question remains : Will the ‘ neo ’ in neobanks still be relevant if incumbents catch up to challengers ? fintechmagazine . com 69