How banks gain a convergence edge
The digital-first world is driving a convergence of financial and communication services. Many banks and telcos form partnerships to both further and take advantage of that convergence. The trend is part of a larger digital convergence of services across industries that’s being fueled by consumer choice. Why? People find it convenient to access multiple services and products from a single trusted source. Businesses become that single trusted source faster through cross-industry collaboration and partnership.
In this article, I will focus on how banks can ride the convergence wave to become customers’ first option for all things financial and more. The goal is to become central to every aspect of a customer’s financial – not just banking – life by expanding beyond banking and uniting every aspect of personal finance. With the help of partners, such as telcos, banks empower customers to spend less, enjoy their income more, and achieve financial goals.
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Your bank becomes the go-to resource that consumers choose – by helping them make better, more informed choices. How? Blend convenience with end-to-end visibility, appealing deals, and – most crucially – objective insight into customers’ unique needs and goals. That takes the form of a financial choice hub where people exercise control over every aspect of their financial decisions. The financial choice hub centralises accounts, credit products, insurance, investments, budgeting, and more. With generative artificial intelligence (GenAI) and Agentic AI enhancing the hub experience, consumers engage with and manage their money in new ways.
The financial choice hub opportunity
At first glance, the financial choice hub may sound like a digital banking experience with aggregation tools. However, the hub delivers much more than account visibility and aggregation. Think of it as a finance-focused superapp enhanced with tools that proactively help consumers make better choices. The “choice” aspect is key. People will choose their financial goals, the accounts they want to link, and which options to activate. Choice is also the risk. That’s because convergence and open finance mean that new competitors, like fintechs or tech giants, could expand their encroachment on your domain if you don’t explore expansive options like a choice hub.
Here’s how a financial choice hub might work for someone who makes saving money their top financial goal. They choose to let the hub find deals for them based on their spending. When they want to make a purchase, the hub helps them choose the best overall payment option – even if it’s a card issued by another bank – accounting for rewards, discounts, and volume incentives. This type of deal analysis helps establish trust and creates a reason to consult the hub for financial and other activities.
The hub can also help customers find deals on frequently purchased items. Is the consumer a dog lover? There’s a dizzying array of loyalty programs offered by pet retailers. Using AI, the hub could analyze which retailer offers the best programme for the items they buy. AI also offers financial coaching that provides a thorough review of spending, helping customers access a big-picture view of purchases and save money. What streaming services does the customer use?
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By GlobalDataThe hub could identify (or even dynamically create) a bundle that combines mobile service with premium streaming entertainment options. Another customer’s hub could help them focus on saving for a home or retirement. The possibilities are as endless as the number of people who make the choices.
Build the “machine” that drives a financial choice hub
The most successful financial choice hubs will make customer preferences their north star. Do your customers want financial products bundled with entertainment, smart home, travel, or small business benefits? You can find out by using partnerships to identify options that will resonate with your customer base. On the backend, you need an infrastructure, application, and engagement strategy that supports scale and flexibility. Financial choice hub foundational elements include:
- Open banking mastery: Enable the aggregation piece of the hub by taking advantage of API-based access to customer data. In many markets, regulations require that you and your competitors facilitate open banking. Go beyond compliance and win the future by becoming a leading financial aggregator – instead of just a provider of data that others aggregate.
- Seamless connectivity: Bring the ultra-low latency of 5G to transactions, such as investment trading, mobile payments, and IoT-based services, within the financial choice hub. Especially in markets with high data usage rates, you can gain a competitive advantage by partnering with a telco for preferred connectivity. You also set up your bank to expand connectivity-reliant innovation as the move to 6G begins.
- AI-powered coaching and engagement: Conversational engagement streamlines everything from selecting the best payment method to managing spending on everyday items. AI agents will act on behalf of consumers, helping them take full advantage of all the options in the hub. Key to the hub’s success is GenAI, which enables consumers to use natural language to make informed choices and integrate the hub into their everyday lives.
- Dynamic product personalisation: Create and launch product propositions that match customers’ immediate needs and preferences. You harness the power of automation and product bundles by using rule-based processes to deliver the products customers want when they want them.
- High-value partnerships: Build partnering momentum by collaborating to offer a wide range of financial and non-financial products within the choice hub. Start with partnerships, such as with telcos, that complement and strengthen your core product offers. For example, augment banking services for small businesses by partnering to include options such as accounting and payroll services in the financial choice hub.
Charting the future of financial choice
As convergence accelerates, banks have a unique opportunity to evolve into trusted financial choice hubs – centralising services, deepening engagement, and delivering proactive value. By embracing modular infrastructure, AI-powered personalisation, and strategic partnerships, banks can meet customers where they are and guide them toward smarter financial decisions. The path forward isn’t just about expanding offerings, it’s about building ecosystems that empower choice. Now is the time to explore fintech partnerships that help bring this vision to life.
Pablo Cella is Division President and General Manager for the Business Division Studio at Amdocs
