The document discusses the strategic challenges facing banks in the digital age. It outlines how banks are struggling with fintech competitors and changing customer expectations. The document recommends two strategic actions for banks: partnering with fintech players and opening platforms to third parties. It emphasizes that banks must enhance their analytical capabilities, improve customer experience, and transition to a relationship-based model to survive the digital transformation of banking.

1. STRATEGIC DIGITAL
BANKING
Presented By:
Hemalatha. B
Divya Varshini
Semester IV
Presidency Business School
May 2020

2. INTRODUCTION
Banks are struggling to survive through the digital age.
In order to compete with FinTechs, regulatory mandates and
consumer requirements, banks have to plug and play into the digital
business ecosystem to recover market share and reassure their value
proposition.
 Financial institutions and banks need a new strategic mindset for
their business.

3. CHALLENGES FACED BY BANKS
 Unprecedented amount of disruption in the banking industry across
every market, every distribution channel and every single product
line
 Appearance and fast proliferation of low-cost Fin Tech competitors
posing a risk to traditional banks
 Need for IT systems and ecosystems to rapidly respond to the
increasingly changing consumer expectations.
 Ambiguity about the future
 The key question is – Should banks develop their own
technological solutions or should they adopt the inorganic growth
route by acquiring Fin Tech start ups?

4. TWO STRATEGIC ACTIONS BY
BANKS
Partnering with Fin Tech players
 Opening up their platforms to grant third parties
access to their customers

5. Customer Centric Banking
 Will branchless banking become the norm?
Customers look for an easy and enriching digital
banking experience
Clients are now more likely to access their banks in
more impersonal way

6. TOP 3 PRIORITIES
 ANALYTICAL CAPABILITIES
 OPERATIONAL EFFICIENCY
 ENHANCING CUSTOMER EXPERIENCE

7. IMPROVING OR ENHANCING DIGITAL
EXPERIENCE
Consumers are increasingly making decisions based on how easy it
is to interact with their financial institution, and the growing
competition around the customer experience is creating new roles
and titles within the banking industry.
A majority of financial services firms are in the process of
expanding their customer experience projects, especially as it relates
to both digital and mobile engagement.
There is difficulty in gaining resources to pursue new projects
To improve the customer experience, banks and financial institutions
will need to design KPIs and other metrics to properly measure
success.

8. Currently, there is a wide variance in methods and metrics
that are being used around satisfaction, retention, loyalty,
engagement and, in some cases, around revenue.
Banks and Financial Institutions must move from a
transaction based business model to a relationship based
business model.

9. ENHANCING DATAANALYTICS CAPABILITIES
Every trend for banking for the upcoming years is virtually putting
customer insights, info and data analytics at its foundation
Making the customer journey frictionless
Improving multichannel delivery
Use of open APIs
 Harnessing the full potential of data and multi-layered systems
Greater need for functional collaboration

10. OTHER CHALLENGES
HOW TO REDUCE COSTS WITHOUT DILUTING THE
QUALITY OF SERVICE
ADDRESSING PROCESS FLAWS
AUTOMATION & STREAMLINING OF ROUTINE PROCESSES

11. THE FUTURE
LANDSCAPE SHAPED STRONGLY BY
BOTH TECHNOLOGY AND
NONTRADITIONAL COMPETITORS
 AUTOMATION IN RETAIL BANKING
 MORE MONEY FLOWING THROUGH
FINTECH FIRMS THAN TRADITIONAL
RETAIL INSTITUTIONS.
DISRUPTIVE INNOVATIONS BECOMING
THE NORM IN BANKING

12. WILL BANKS ACCEPT CHANGE?
 DIGITAL TRANSFORMATION
 ENHANCING ANALYTICAL CAPABILITIES
 A NEW BUSINESS MODEL?
 BANKS: TRANSACTION CENTERS TO A VALUABLE
FINANCIAL ADVISORY SERVICES.