SMART BANKING
Real-time transaction processing and biometric authentication are but two more features that make up a smart banking offering according to Kyprianidou . At the same time , the implementation of blockchain technology can “ improve security and reduce fraud by creating a transparent ledger of transactions , as well as streamline cross-border payments ”. What ’ s more , an embedded financial ecosystem allows smart banks to “ rethink the value chain as a modular capability stack , [ where ] within this stack , a bank can take on various roles of ownership to determine a new business model ”.
In essence , smart banks stitch these multitudinous characteristics into the fabric of their offering , creating a positive digital experience for customers and a streamlined back office . But , where does this leave legacy banking institutions , which Kyprianidou says “ face a significant challenge in keeping up with the rapid pace of fintech and smart bank innovation ”?
What must they do to stay relevant amid the rise of challenger banks ?
“By using gamification in banking apps , a bank can target customers according to their specific needs ”
PAVLO KHROPATYY VICE PRESIDENT OF DELIVERY AND HEAD OF FINANCIAL SERVICES & INSURANCE , INTELLIAS
Keeping your legacy alive As far as Pegasystems ’ Global Banking Industry Market Lead , Steve Morgan , is concerned , the one thing “ traditional banks cannot afford to do is wait ” before implementing smarter banking practices . “ A ‘ smart banking ’ approach to retail banking is incredibly necessary in the face of stiff competition from challenger banks continuously raising the bar .”
He notes that “ while core systems of record remain difficult to replace and can be viewed as a limiter ” for legacy banks , they can also close the gap with challenger banks “ by placing smart processes and intelligent automation at the centre of a business architecture to progressively hollow out ” old systems . fintechmagazine . com 57