Introduction to The Case Study
Banking institutions are fundamentally challenged to maintain competitiveness amidst an increasingly digitally focused market and changing customer expectations. In fact, all strategic players in the banking sector are now coming to the realization that next-generation banking clients will be the major profit pool a few years from now. “The Comerz Bank” (TCB) case study demonstrates this fact so vividly. The case documents the growth of TCB over the years as well as the digital initiatives implemented by the company to meet the needs of next-generation customers, who are continuously transforming service delivery in the banking sector. In this regard, the TCB case paints digitalization as a need rather than a novelty in the industry. Perhaps, with a budget of US$ 5 billion, alongside a team of 5,000 technologists, TCB’s actions underscore the seriousness digital technology deserves in the finance sector. Besides, under the leadership of the company’s CEO, TCB is arguably in the race to adjust its service to customers, both in the short and long term, through the use of newer technologies such as Cloud Computing and Artificial Intelligence (AI). Overall, TCB’s case emphasizes the significance of innovating technologies in the banking industry. It proves that to remain competitive, there has to be a combination of science and art that facilitates the Next-Gen Banking Experience.
How Technology is Shaping the Future of Banking
The world’s business environment is constantly changing with the advent of newer technologies. These advancements continue to cause disruptions in various industries, including the Banking sector, which has to conform to the changing customer needs and expectations. Today, new technologies have greatly changed customer expectations, prompting the need for a more intelligent approach to banking. For instance, the convenience instigated by Smartphones and technologies alike means that customers want and demand high-speed, convenient, and personalized services across the board. As such, Banking is one of the sectors that must keep up with the current trajectory. This calls for a smarter approach to Banking services, a move which is being made possible through better use of Big Data (Mungai & Bayat, 2018). This way, technological developments continue to shape the future of banking by demanding convenience through the integration of Big Data into Banking Services. Additionally, technologies such as AI are restructuring the banking sector into one that establishes a more valuable relationship with customers away from transactional relationships. While these changes are just in an embryonic state, AI is anticipated to make a huge difference in the banking sector, notably by providing an improved means of engaging with customers. Chatbots are already proving significant in engaging customers, something that provides a glimpse of how technology is shaping the future of banking. With further technological developments and data fed on robotic customer care agents, valuable relations will be established with clients in the banking industry.
Further, technology is shaping the future landscape of competition within the financial sector. With customers settling for convenience by becoming more reluctant to physically visit banking institutions, quite a significant number of financial service providers are leveraging contactless and online services. In other words, in the race to provide enhanced customer experience through Omni-channel presence, traditional banking institutions are innovating through financial technology collaboration. Moreover, distributed systems such as decentralized finance continue to take momentum by leveraging financial technology. Today, there is a massive expansion of cryptocurrencies alongside more affordable automated investment solutions. Together, the readily available financial knowledge and decentralized finance are consistently restructuring the global balance of power. The power is shifting from traditional financial institutions and banks to a novel cohort of financial technology startups who are more tech-savvy, especially when it comes to the decentralized financial landscape (Djock, 2021). This implies that the promise of a more accessible and inclusive future of the banking sector is crucially on the startups leveraging technologies such as Blockchain. As such, technological developments are increasingly shaping the future of the banking sector. With this trajectory, we should expect bigger investments in organizations that address gaps in the financial landscape and complex social challenges.
How Technology is Shaping Ways to Manage Future Risks
Technology is leading to a more secure banking environment. Reports indicate that quite a substantial number of leaders within the banking sector acknowledge cyber-security as the leading operational threat. Even so, technology provides solutions to these challenges and other threats through innovations such as biometrics which are continuously making the banking industry more secure. The potential of biometrics is wide-ranging and offers a promising future for the banking sector. Today, palm veil authentication provides even a tougher security measure for managing future risks. The technology works by matching the pattern of veins in an individual’s palm with the one stored in a database. Essentially, the palm is an ideal body part that provides a complicated and broader vascular pattern for personal identification. As such, this technology is an important addition to the effort to shape ways of managing future risks. Additionally, technology such as AI provides an opportunity to understand operational vulnerabilities. As a risk management solution, AI enables the detection of problems and predicts emerging risks, something which underscores how technology is shaping ways to manage future risks (Hamilton, 2020).
References
Djock, E (2021). Trends & Technologies Shaping the Future of Banking and Finance. Retrieved from https://www.itonics-innovation.com/blog/trends-and-technologies-in-banking-and-finance
Hamilton, S (2020). Bank Risk Management Technology for The 4 Biggest Bank’s Risks. Retrieved from https://www.360factors.com/blog/bank-risk-management/
Mungai, K., & Bayat, A. (2018, December). The impact of big data on the South African banking industry. In 15th international conference on intellectual capital, knowledge management and organizational learning, ICICKM 2018 (pp. 225-236).
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