Finacle - Next Generation Islamic Banking Solutions & Online Portals

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To learn more about how regulations will shape the face of Islamic banking, come join an elite panel of bankers and domain experts for a webinar: Islamic banking in the face of changing regulations.

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Finacle - Next Generation Islamic Banking Solutions & Online Portals

  1. 1. Next generation online Islamicbanking portalsThought Paperwww.infosys.com/finacleUniversal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing
  2. 2. Next generation online Islamic banking portals Islamic Banking is set for a steady growth, with Islamic finance, if Islamic Banks offer advanced global assets expected to cross $2 trillion by and innovative services as provided by 2015. Research suggests that half of the global conventional banking services. population that follows Islam would opt for The state of online Islamic banking today Conventional banks have heavily invested on Very few Islamic banks are offering customer digital channels which has transformed the way service through digital channels. Majority of they offer banking services to their customers. the customers still seem to prefer the brick and They have reached a state where customers mortar structure than any other channels. are able to do financial and non-financial While basic services like account inquiry and transactions online, wherever they are, thanks transfers are offered online, interactive and to internet banking and mobile banking. Digital advanced services are yet to be offered through consumers prefer doing their own research online channels. Research however shows that before taking a decision on the best suited online Islamic banking is poised to take a big product or service offered by their banks. They leap forward in the coming years. can interact or set up a meeting with their relationship managers online, through unified communications technology. 10 incremental innovations to redefine online Islamic banking While research indicates that there is a huge customer experience to increase loyalty and market for Islamic Banks, it is necessary that customer satisfaction index. Many of these steps they embrace digital channels too to attract and have been tried and tested in conventional retain their customers. Internet browsing speed banking and have proved to be successful in is improving day by day. Newer devices and delighting customers. They would definitely gadgets are being launched every day. And the bring in similar benefits when implemented in tech savvy digital consumer is ever ready to Islamic Banking as well. adopt anything that makes life easier. The time 1. Multi-channel banking – Banks and financial is just right to tap these technological advances institutions offering Islamic banking have to and fulfill the ever increasing needs of the open up more touch points to customers. digital generation. Let the customer bank anytime and Let us explore 10 incremental innovations that anywhere, with any electronic device they would define the next generation online Islamic have – be it desktop, laptop, tablet, mobile banking portals and provide a differentiated phone, television or even their play station.02 Thought Paper
  3. 3. Transaction volumes are bound to increase off in advanced markets, enabling easier with increasing ease of access to banking realization of money once the check is services. Funds transfers, payments, bill deposited. Advanced image recognition payments, inquiries and service requests can technologies can enhance the image quality be initiated online, without having to go of the check as per the specifications, thereby to a branch. Customer origination, account reducing image quality based rejections. origination and verification procedures can Adequate fraud detection and prevention also be initiated through online channels technologies are available as well to reduce and can be completed through call center online check image related frauds. or branches. Conventional bank branches 5. Family banking – Let your customers manage have achieved significant productivity accounts belonging to their family members improvements by launching online channels. through online banking. Parents could be Branch staff can divert their attention to allowed full control of their kids’ account, other critical tasks, which mandatorily needs including inquires and transactions. Parents human intervention. could also set transaction limits or even2. Product catalogues – Share products and restrict payments to online shopping sites services related information online. Let through their kids’ account. Personal finance customers know when their bank offers new management can be extended to plan products, along with product details. Allow a monthly budget, and they could even them to select products they are interested monitor the spend patterns of their kids. in and analyze them before deciding the While kids get to plan their finances, it gives best option suited to their needs. Making greater control to parents as well. information accessible, along with rich 6. Web 2.0 & social media - The digital consumers graphical user experience, goes a long way in would like to interact with their friends enticing customers. and seek their opinion on products. They3. Customer acquisition - Many banks in might also want to share their banking advanced countries have already made a experiences which might be useful to others. move towards online account opening and Such information and recommendations act customer acquisition. Prospects can view the as indirect marketing for banks. Banks can products online, and apply for products by leverage social media for viral marketing and providing necessary identification documents. increase their reach. While making secure The entire process, including application banking services available through social filing, identity and address verification, media portals, banks also need to ensure that signature capture and creating new account, necessary safety measures are put in place for can be accomplished online. Business rules protecting the privacy of customers. can be set to have the entire process 7. Financial planning tools – Visual representation automated as well. Islamic Banking can also of calculations are always appealing to adopt these techniques to initiate customer customers. How about showing a graphical acquisition and account opening and comparison of financing with different online. These steps help banks in increasing options, so that the customer can make an customer base and also increase the easy decision, instead of showing a table with productivity of bank employees. data comparing the products? How about4. Remote deposits – Allow customers to upload a product comparison chart showing the scanned images or photo images of checks attributes and benefits of different products? taken using mobile camera, with certain A variety of tools including charts and specific image quality, instead of walking up graphical illustrations can be used to explain to the ATM or Branch for depositing their the products, through internet banking and checks. Remote deposits have already taken mobile banking. These tools can be designed Thought Paper 03
  4. 4. to take inputs from the customer and provide even tips on savings options. Remote advisory illustrations in a way that is preferred by services, where customers can interact with the customers, thus giving an interactive their relationship managers or customer care experience and enhancing self service capability. representatives online, would go a long way in creating a loyal customer base. Knowing 8. Layered analytics - The ability to analyze the customers and their needs, relationship customers’ data in different dimensions, to managers can provide them effective derive intelligent actionable insights, is the guidance - to increase their savings, reduce next wave in banking analytics. Consider a their spending, reduce their debts etc. customer, who may be doing frequent high value transactions through mobile banking- While considering such innovations, banks he can be protected using additional must keep the “4C”s in mind – 4 key themes authentication measures for performing which are important for the success of an online these transactions and can be alerted over banking portal: an e-Mail as soon as the transaction occurs. • Community: Bring like-minded customers and Similarly, a customer who generally uses prospects together under a common platform, internet banking for inquiry purposes could and allow them to interact online. Create be offered a discount or reward points for online communities and discussion forums. paying bills online. • Communication: Allow secure interaction 9. Tablet banking – According to Gartner, the amongst customers and easy access to bank’s worldwide sales of Tablets is going to hit staff members. Effectively communicate with 320 million units in 2015. The growing usage the customers about new products and of tablets is set to continue for the next 5 services and Islamic banking concepts. years, irrespective of customer segments. Enable mass usage of content created by From ‘good to have’ today, tablet banking online communities. would soon be a ‘must have’ for banks. A banking portal or app, leveraging the user • Collaboration: Enable customers and prospects experience capabilities of tablets, would to collaborate with the bank, and co-create become an alternate self service channel, products and services that suit their needs. alongside internet banking and mobile banking. Online communities and social media would enable collaboration and co-creation. 10. Advisory services – While banking on self- service channels, certain instances would • Commerce: Create an ecosystem where make the customers feel the need for traders, suppliers and consumers can interact personal assistance. It could be for discussions and collaborate and have a differentiated about a new product offering, or guidance e-commerce experience. on initiating some transactions online, or04 Thought Paper
  5. 5. BenefitsToday’s digital generation need rich and in online marketing and help in increasing thepersonalized online banking experiences that is reach to customers and prospects. Productivitysafe and secure. Innovative customer experience of bank employees can be increased by offeringoffered through multiple channels and devices more and more features through onlineis one of the critical success factors for the banking. Customer service cost is much lesseruptake of new generation portals. for the internet and mobile channels, as compared to branch or call centers. For theIslamic Banks can leverage the capabilities customer, it is anytime, anywhere accessof online media and other technological combined with compelling user experience andinnovations to entice the digital generation and personal assistance wherever necessary.create a pool of loyal customers, who can bethe banks’ ambassadors. Online portals can aidConclusionInternet and mobile penetration continues to to customers, empowering them with more andrise, and so does banking on these channels. more self service capabilities, providing themAs the digital generation constitutes a major multiple access points and making bankingchunk of the online banking population, it is easy and enjoyable for them would lead toessential for banks to provide a differentiated positive results. As more customers start usingexperience through online banking portals new generation portals, they would act asand mobile apps. The story is no different for ambassadors for the bank and indirectly helpIslamic Banks. Innovative ways of reaching out in enhancing revenue.References1. Celent: The next chapter in Islamic 3. Ernst & Young: The World Islamic Banking Finance Report Competitiveness Report2. Gartner:http://www.gartner.com/it/page.jsp?i d=1980115 Arunnima B S Principal Consultant, Finacle, Infosys Teena Nair Senior Consultant, Finacle, Infosys Thought Paper 05
  6. 6. About FinacleFinacle from Infosys partners with banks to transform process, productand customer experience, arming them with ‘accelerated innovation’that is key to building tomorrow’s bank.For more information, contact Finacleweb@infosys.com www.infosys.com/finacle© 2012 Infosys Limited, Bangalore, India, Infosys believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Infosysacknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document.

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