Speaking to RBI, Mambu’s Chief Customer Officer, Elliot Limb, analyses the top trends for 2019 and looks to the future.
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Customer centricity – A trend that has been gaining pace over the last few years, we really are seeing the customer put at the centre of business models and decision making. The entire concept of a return to relationship banking (possibly with a commoditised product delivery around it) is something that many banks are starting to embrace with their digital offerings. The AI space in this area will be very interesting to watch as individuals get what they need, when they need it and how they want it.
Collaboration – This is the power shift in the market, with a realisation that just technology collaborations or “bank-led” collaborations are not enough. There has to be alignment from strategy through to value realisation in the entire ecosystem for collaborative models to work. As this develops the support to the customer experience and the ability to deliver better products faster and at a lower cost will be key.
Flexibility – Composable business architectures. This is how the market will deliver a framework for collaboration in order to support customer-centricity. We also call it ‘composable banking’ which refers to the quick and flexible assembly of independent systems. Having an architecture where everyone is “the best” at what they do, but with an easy integration that allows banks to build solutions and products for an unknown future is going to be a big differentiator
Speedboats becoming battleships – A lot of the composable banking and collaboration is happening in the start-up and neo-bank space, but the larger banks are launching or have launched “speed boat” digital banks to prove the model. Over the next few years, these solutions will become the central process of the bank, removing the legacy and on-premise monolithic technology stacks and related business architectures with an agile, fit for purpose and composable solution that is adaptable to future business needs.
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By GlobalDataToo many unknowns
This comes down to banks realising they cannot predict the future, there are too many unknowns in terms of increased speed of innovation, customer expectations, a shift to the cloud, new market dynamics with challengers and new market entrants, shifting regulatory landscape and new technology focus (AI, IoT, etc.). The list goes on, but these drivers put us in a position where retail banking is no longer about delivering basic services, having the most suitable (or coolest) channel or lowest costs.
Right now, it is about delivering the diverse, individual customer experiences across a wide range of demographics and geographies, with very different and often complex demands, that the market has not seen before.
We are at a tipping point in the industry, there are so many moving parts (innovation, regulation, customer expectations, move to cloud/SaaS, AI, analytics, return to relationship banking etc.) that to predict the future is impossible. I believe that we should abandon the idea of building ‘future-proof’ businesses, and start building ‘future-ready’ ones.
Flexible, scalable and collaboration-based business models are the way to go and the technology to support that must quickly address this shift and give a platform for this unknown market. Working as a collaborative ecosystem that drives innovation quickly and has a customer-centric focus is the only way for banks to win.
