Now is not the time for sitting still! Of course, we are all focussed on compliance with PSD2 and the right response to Instant Payments. But let’s not forget: it’s not the regulator who is the real driver for change – it’s the customer.
New services offered by FinTechs, the possibilities of today’s mobile devices and the emergence of a shared economy have raised clients’ awareness of what is possible. As a result, their expectations of their banks are growing. The long-term loyalty which clients have shown their bank(s) is no longer a given. The challenge for banks is to show that they are in pace with current developments and innovative enough to stake their claim in this new environment.
Today, banks face three main challenges to meet client expectations:
To comply with PSD2, banks must provide a well-documented interface for third parties to access client account information and initiate payments. By the cut-over date in September 2019, this interface must be tested, approved by the local regulator and shown to offer the same level of service and performance as the bank’s own online banking. But a future-oriented strategy will not stop at this mandatory interface for selected services. Position yourself as a strong partner by delivering additional services, either directly or in cooperation with third-parties. Offer local payments or direct debits, for instance, provide financial status reports or even a capability for the customer to access all its bank accounts via this interface. Any of these will send a strong signal that your bank is ahead of the competition.
Real-time services are becoming the norm. Instant Payments is just one initiative in which market standards are emerging. Clearly, if banks succeed in integrating Instant Payments within their portfolio, it will reduce the threat of third-parties gaining market share with such solutions. But banks will also be judged on how well they are able to move beyond this and provide other real-time services, for instance online balances, real-time notifications, direct updates on currency rates.
Set up a central digital touchpoint where clients can access the full range of banking services, enriched by external data feeds, wherever these add value to the client proposition. Choose a design which ensures that users can connect via the widest range of possible e-channels and devices, at the same time if necessary. Examples could be online stock exchange updates, maps with branch locator, to customer interaction services such as a Chat or Video-Identity function. And be sure to embed this in a modern, personalized digital experience, where a simple and elegant user interface guides each user intuitively through his/her customer journey.
Future-oriented solutions from Omikron enable our banking partners to be open, fast and innovative. Omikron’s MultiCash Communication Platform is designed for maximum flexibility, so that customers have a full range of options to connect to the bank and consume bank products. The platform has an open design at all levels: multiple client channels, seamless integration with internal system, a multibank connector and infrastructure for integrating external services and APIs. It is even feasible to integrate Omikron’s platform within a broader services portal built and managed by the bank.
With the right strategy, future-oriented technology and readiness for innovation, banks can help to shape these new developments and find new revenue streams.
Let’s face the coming challenges together!