“Banks cannot expect to compete with “digital-savvy” new entrants to their market by ‘bolting on’ new software to old systems so as to deliver digital banking services, software giant Oracle has said.
In a new report on digital banking (24-page / 442KB PDF), Oracle said that traditional retail banks face a particular threat from innovative new financial technology companies. It said that whilst banks themselves recognise the importance of meeting the “omni-channel” needs of customers, they are not fully committing to the digitisation of their business necessary to meet those needs.
Banks are too insular and their relationship with customers is “bank-centric” and not sufficient focused on the customer, Oracle said. It said banks need to use customer data more effectively to improve the services they offer customers.”
As banks and other financial institutions evaluate the most effective path toward omnichannel banking, many are realizing that radical changes are necessary in order to take full advantage of the latest technology and business processes. At the same time, they are realizing that there are significant headwinds to overcome on this long journey.
For more information on this topic, Mercator Advisory Group has just published a new report entitled “Omnichannel Banking Is Taking Hold: Lessons Learned So Far” that examines financial institutions’ early observations as they travel down the omnichannel banking path.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Service
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