Bryan Yurcan, an analyst with Bank Systems and Technology wrote an excellent piece covering some of the technology trends to watch for in 2012. “8 Bank Technology Trends That Will Shape the Industry in 2012” covers a wide range of issues, most notably around mobility and security. In reading through the article, here are some of the key points I took away:
1. Convergence of Mobile and Online Technologies – As mobility continues to grow into a maturing channel, banks and their vendor partners will produced richer mobile offerings that take advantage of its unique capabilities.
Implications: Banks need to develop a cohesive set of technologies that will make mobile app and online development easier for banks to manage.
2. Business Process Management – Banks need better methods of gathering and reporting data to both increase efficiency and ensure regulatory compliance.
Implications: Banks will need to invest time/money into big data, analytics, and the technical challenges of analyzing and reporting very large amounts of information with a quick turnaround. Data integration, along with enterprise system integration, will also help banks obtain a more accurate view of their customers.
3. Message Centers will Replace Email – Dedicated web portals designed for secure communication between a bank and its customers will continue to replace legacy email systems. Security are among many of the benefits for such a move. Ernst & Young that found employees within organizations and businesses are increasingly the targets of hackers rather than individual consumers.
Implications: Banks employing third-party and joint marketing campaigns need to develop a coherent strategy for integrating these capabilities with the message center paradigm.
4. Table-based Banking Experience – The potential for a great tablet banking user experience, especially with the rich interface tablets offer (e.g., IOS, Android, etc.), is nearly unlimited. Customer like feeling good when they deal with their finances, the mobile rich user experience of the tablet world offers a means for personalizing the banking experience.
Implications: Banks need to develop a comprehensive online banking strategy based on cutting-edge mobile technologies, such as mobile remote deposit capture, in order to meet the mobile user experience needs of the customer.
5. security, Security, SECURITY – As more user rely on mobile and tablet based technologies to conduct their banking, these devices also will become the growing focus of hackers and fraudsters, who are always on the hunt for ripe targets. It almost goes without says, but Ernst & Young nevertheless report released in November 2011 on the current state of security threats noted that consumers who access sensitive data, such as banking information, on mobile devices at wi-fi hotspots are more susceptible to hacks.
Implications: Banks need to assess their security portfolio across all user channels and expect to invest time and money into ensuring safe online, mobile, and remote banking practices.
6. New Post-Channel World – “The days when a customer would walk into a branch to fulfill all of his or her banking needs are long gone,” according to Mr. Yurcan. In most cases, customer are expected to finish their business (e.g., loan application) in the same branch it was started. But changing customer demographics, work and travel habits are changing this expectation.
Implications: Banks will need to better manage the seamless integration of online, offline and mobile channels in 2012 and beyond.
7. Using Self-service to Generate Bottom Line Revenue – In 2011, the customer black lash against Bank of America’s $5/month ATM fee sent a load message to the banking industry – Don’t charge me for doing your job! Customer want self service and expect not to pay for it.
Implications: Banks need to focus on self-service to grow the bottom line by encouraging customers to embrace cost-saving practices (e-statements, online bill pay, etc.).
