Key takeaways
- Customer centricity drives transformation: Banks must prioritize customer-centric strategies to remain competitive, aligning products and services with evolving customer expectations. Focusing on personalization, intuitive user experiences, and innovative technologies like AI can significantly enhance customer satisfaction and retention.
- Digital platforms are essential for banking’s future: As competition from FinTechs and digital-only banks intensifies, banks must leverage digital platforms to stay relevant and exceed evolving customer expectations. These platforms enable institutions to transform traditional services with AI-powered insights, real-time capabilities, and scalable solutions for a seamless experience.
- Innovation through partnerships and technology: To accelerate innovation, banks need to adopt scalable cloud-based technologies and build strategic partnerships with FinTechs and technology providers. Leveraging AI, machine learning, and secure authentication systems ensures operational efficiency and customer trust in a rapidly digitizing industry.
Banking is at a turning point. Customers now expect a digital, frictionless, and personalized experience that can keep up with the standards of global technology companies such as Amazon or Google.
The question for banks is no longer whether they should undertake a digital transformation but how quickly and effectively they can implement this change. Digital platforms play a central role in this.
Customer centricity is a key challenge for banks
Customer expectations in banking have changed drastically in recent years. According to a study by PwC, 75% of consumers prefer personalized offers and easy digital interactions.
At the same time, 40% of customers would be willing to switch to non-traditional providers such as FinTechs if they offer better digital experiences. Banks must meet these expectations without neglecting their regulatory requirements and risk management obligations.
Customer centricity has emerged as a key differentiator for banks, especially in a highly digitized financial services landscape. It enables them to align their products, services, and operations with their customers’ evolving needs and preferences.
DBS Bank is a classic example of a customer-centric bank that has embraced a transformative AI strategy to enhance customer experiences through intuitive mobile apps and integrated AI-driven chatbots to provide seamless banking services.
Banks must overcome challenges arising from legacy systems, organizational culture, and regulatory constraints to remain agile and compete with fast-growing FinTechs and digital-only banks.
“Digital platforms are no longer a luxury for banks – they are the foundation for delivering personalized, secure, and seamless customer experiences in a rapidly evolving financial landscape. To thrive, banks must embrace innovation, prioritize customer needs, and transform themselves into agile, data-driven ecosystems.”
Prof. Dr. Nafis Alam
Digital platforms: The path to better banking
Digital platforms offer banks a solution to meet customer expectations while working more efficiently. They combine traditional banking services with innovative digital offerings accessible via mobile apps and online portals. A successful platform seamlessly integrates services such as:
- Personalized financial recommendations based on data analysis.
- Automated processes such as credit decisions through AI.
- Real-time communication and self-service options.
For example, the Spanish bank BBVA has significantly progressed with its platform strategy. Using AI and data analysis, BBVA offers personalized insights into its customers’ financial habits, increasing customer satisfaction significantly (source: McKinsey, 2023).
Driven by technological advancements, the banking industry is undergoing rapid transformation. With changing customer expectations and increased competition from FinTech and non-traditional banks, digital platforms have emerged as a savior for incumbents.
OpenBank, a fully digital banking platform 100% hosted in the cloud under Santander, has proven how digital platforms can lead to a seamless banking experience. The platform provides comprehensive banking, investment, and insurance services, AI-driven customer insights and open APIs for fintech integrations.
Having closely worked with some FIs on digitization strategy in the region, it is evident that digital platforms are not just an option but a necessity for banks to thrive.
Successful strategies for introducing digital platforms
To effectively introduce digital platforms, banks should follow a few essential principles:
- Focus on customer centricity: The platform should be based on the actual needs of customers, not on internal processes.
- Use scalable technologies: Cloud-based solutions and modular architectures enable flexibility and growth.
- Build partnerships with tech providers: Collaborations with FinTechs or technology companies accelerate innovation.
Banks should prioritize ease of use and provide an intuitive user interface (UI), ensuring a seamless customer experience and allowing the banking platform to integrate with existing systems, APIs, and third-party services.
If multi-factor authentication (MFA), biometric verification, and AI-driven fraud detection are in place, customers feel secure and value their banking experience. Personalization remains the key priority and improves customer satisfaction and retention.
Digital platforms should use AI and machine learning to analyze transaction data and recommend products or services.
A look into the digital future of banking
The future of banking lies in using digital platforms to create an outstanding customer experience.
Banks that successfully meet this challenge will stand out from the competition in the long term. At the same time, opportunities will open up to develop new business models and compete in a rapidly changing market.
With digital platforms as a core strategy, banks can meet today’s customer needs and lay the foundation for sustainable success.
Now is the time to shape the change
Rapid advancements in technology, evolving customer expectations, and regulatory changes will shape the future of banking. Banks will look vastly different from today and likely function more as technology companies, emphasizing digital services, automation, and customer-centric innovations.
Traditional banking models will give way to agile, data-driven ecosystems that cater to the demands of a hyperconnected, digital-first world.
