Future-Ready Financial Services
Most industries have been disrupted by digitization. Advertising and entertainment migrated to new media, shopping is no longer just a physical world experience and even transportation relies more and more on apps, automation and artificial intelligence.
Despite Fintech disruption, many financial institutions still remain a stronghold of a more traditional approach to customer relationships. Compliance, mitigating risk and brand trust are prioritized over digital transformation.. But even very traditional banks are slowly beginning to embrace the move toward a cashless society.
Within the payment landscape, technology (and specifically its evolution) plays a critical role, driving market trends that impact business strategies, risk levels and service offerings. It is after all an industry built on tools that provide security and authenticity for a fundamental task - transferring value from one place to another. Coins, banknotes, mag-stripe cards or EMV are just technical implementations to perform that task securely. Anyone who is part of this industry knows that change is the only constant and things are just the way they have always been – no need to worry, right?
But here’s the catch: now change is happening not just to payments, but to the entire way financial services are delivered. This new interconnected era has imperative key new element: the focus of the services is on the end user! This should make us challenge some past assumptions and ask ourselves:
- Do customers really prioritizing security over all the other aspects of their relationship with their banks, insurers and other providers?
- Is security simply a must-have and should providers be concentrating on experience and value-added services in parallel?
- How do we maintain customer trust while creating a seamless, open, state-of-the-art customer experience?
We are seeing a trend worldwide in users preferring and enjoying the natively digital, easier to use and, in principle, more transparent financial products and services:
- The Chinese internet giants’ digital wallets, ubiquitous in their market, are achieving several times the transactional volume that mobile wallets have built in the US – no traditional payment cards involved!
- In Europe, regulatory entities have responded to the changes and acted promptly to update their regulations on the openness of personal finance information (PSD2).
- Most markets globally are witnessing a rise in peer-to-peer payments, card-less payments, biometric authentication and other alternative technologies and forms of payment.
Both the established players or new entrants are dealing with significant challenges in this current moment. So, as an established player, how are you including digital services in your roadmap? How do you secure readiness and agility to deal with these developments? And as a new entrant, how do you navigate the complex technologies and ecosystem features already put in place by the industry?
UL has been a prominent actor during these technological changes – close to the standardization bodies and innovative players, helping them in setting up their vision and building their definitions. UL’s experts have the knowledge, experience and global reach to help you find the best answers to your specific challenges. Get in touch today.