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April 10, 2019

From “Digital Banking” to “Intelligent Banking” transformation

By: David Villaseca Morales | EMEA Banking Innovation

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With a fierce competition among banks for the digital landscape, it is urgent to accelerate the applications of Artificial Intelligence (AI) and cloud technology to boost digital sales, optimizing costs as well as empowering their internal agile talent: the “Intelligent Banking”.

Opportunities for banks, optimizing costs and accelerating digital sales

With 506 million Google's search results on “Digital Banking”, after many years it is already a tangible reality in banks worldwide. For most banks, digital is a strategic priority. Santander is planning to invest more than €20 billion on digital technology, in order to reduce costs and accelerate sales. Also, Lloyds is investing £3 billion in UK over three years for its digital transformation. BBVA considers that digitization means more closely connected and satisfied customers, because “digital customers interact with the bank more frequently and tend to increase the number of transactions and operations, boosting the bank’s income”. 

Nevertheless, there are still huge opportunities to connect with the customers. According to a NetSuite research across industries, 80% of consumers do not feel they are provided with a personalized experience, whether physical or digital.

Adaptive Intelligence in action

After different efforts on delivering omnichannel experiences, a data driven transformation based on Artificial Intelligence can help banks to accelerate their customer relationships. More precisely, Artificial Intelligence is impacting business across different areas with a practical approach: “Adaptive Intelligence”. These are applications based on internal and external data, powered by Machine Learning and Artificial Intelligence in real-time. These applications are scalable, and able to produce better business outcomes in shorter times.

Four areas are key for an “Intelligent Banking” approach: 1) Sales; 2) Experience Center; and internally, 3) Talent Management; 4) Resources Planning.

Intelligent Banking

  1. Intelligent Sales

Orchestrating data, both internal and external data, is key for generating traffic, as well as driven digital sales conversions. Banks are hyper-personalizing communications with potential customers across media and advertising platforms, maximizing the return on their advertising investments. 

On the whole, Customer Experience(CX) apps help banks to orchestrate marketing and customer interactions, towards better leads and higher digital sales. Specific tools, as the Data Management Platform (DMP), help to manage audiences based on the engaged environment, and understand the entire customer journey across advertising media. Also, keeping personalized communications with customers on their own websites and apps, and generating content marketing.

As an example of the improvements in the Marketing investments, Morningstar got 154% increase in quality leads with Oracle Customer Experience.

  1. Intelligent Experience Center

Customers define their own journeys across channels: they may include both self-service interactions, and also sometimes even personal interactions through contact centers. Traditionally, companies have being implementing efficiency programs on these centers. Now, customers’ demands require an evolution from the traditional contact center, turning into a true “Experience Center”.

AI apps support both self-service environments and empowered human agents. Software-as-a-Service solutions also provides flexible and intelligent interfaces for real time voice/ video communications between customer and agent. This evolution allows not just an agile service, but more sales focus. This way, the Experience Center can become a growth engine, impacting revenues and sales generation.

Vodafone reduced, with Oracle Service Cloud, the average call handling time per query, and enhanced its customer experience in contact centers across multiple channels: voice, chat, email and website.

  1. Intelligent Talent Management

According to the World Economic Forum, in the current Fourth Industrial Revolution, 75 million jobs may disappear by 2022, and another 133MM will have arisen. In this context, banks need to support their employees to develop their talent for the new challenges. This way, AI is a way to empower and develop internal talent, rather than a threat for their employees’ future.

The new Human Capital Management (HCM) apps are giving empowerment with AI to employees. They integrate internal data with technology platforms, to address the new competitive challenges: accelerating internally the digital transformation, and improving business agility. On top of that, banks need to foster life-long learning among employees, with these agile platforms that connect teams.

A U.S. credit union has cut administration expenses through automation, and reduced the time and effort spent on patching by 80%, with Oracle Human Capital Management Cloud. Regarding new employees, the improvement in time spent on hiring and on boarding was 18%.

  1. Intelligent Resources Planning

The front office transformation can be accelerated with a data driven approach in the back office. The new agile ways of working demand agility also in how banks manage day-to-day business activities, such as project management, procurement, accounting or risks. 

Cloud resource planning solutions automate manual tasks and improve performance with accessible business insights supported by real-time data. It is not just about optimizing costs with efficiency, but also enhancing collaboration across areas with a seamless user experience.

Citi and Oracle collaborated on a banking-as-a-service ERP solution to simplify and accelerate the corporate payment experience in almost half the time, reducing inefficiencies and improving transparency and security.

 

The combination of data, adaptive intelligent and talent can accelerate the achievement of the banks’ growth ambitions in the digital landscape.

David Villaseca

EMEA Banking Innovation

Digital Business, Marketing & Sales leader, David Villaseca is expert in Digital Banking and Insurance transformation. Forbes-Choiseul Top “Leaders under 40” and “The Coca-Cola Company Marketing Excellence Award”, for +20 years he has built profitable business in 25 countries (EMEA, Asia, USA, LatAm…) for Accenture Digital, BBVA, Santander, Coca-Cola, LVMH and PSA Peugeot Citroën.

As Banking Innovation, David partners with EMEA customers to utilize Oracle’s cloud and digital technologies to drive innovation and business transformation.

More about David Villaseca Morales

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