Technology Adoption Trends Worth Paying Attention To

Banks today are looking beyond ‘product and pricing innovation’ for differentiation and competitive advantage. The new aspiration is to champion the trifecta of Customer Experience (CX), Omnichannel engagement and a Platform business model.

Technology has a vital role to play in building each one of these economic moats. Banks recognize this fact and as a result are extremely diligent in their approach to evaluate/adopt new applications to their technology-stack.

This past year, as a representative of one of the world’s leading Banking Software solutions provider, I have had the privilege of interacting with many senior banking professionals and analyzing dozens of Request for Proposals (RFPs) for technology adoption. My experience hints at three distinctive trends that are shaping how banks are exploring and adopting technology solutions today.

1. A collaborative and explorative engagement 

There is a shift from banks telling technology providers ‘these are our technical requirements’, to now asking them ‘how can we achieve these outcomes using technology’. The banks are no longer rigid about their business plans and technological roadmap. I see a collaborative exploration of the possibilities between the banks and technology providers. The solution-evaluation discussions too are centered around business outcomes than technical specifications. 

2. The risks and cost of exploration are now mainstream  

Today, banks are even more consciously handpicking the ‘best parts’ from several whole solutions and building their unique moat. The progressive banks go even further to experiment/explore new propositions involving niche technologies such as, Augmented Reality, Artificial Intelligence, and Computer Vision. The banks understand the cost involving these experiential propositions. But the banks have come to accept the cost of these explorations as necessary and worthwhile. 

3. Blurring lines between banking needs and lifestyle needs 

As progressive banks pursue their ‘platform business model’ ambitions, the demarcation between lifestyle and banking needs are merging fast. Ex: The bank’s app needs a chat/message feature just as bad as Whatsapp needs payment workflow. These emerging trends are forcing banks to upgrade their existing tech-stack to be amenable for multiple point-solutions and 3rd party integrations.

These trends may seem indicative but are well-aligned towards getting to the desired final-state of championing the trifecta of Customer Experience (CX), Omnichannel engagement and a Platform business model.  

Do you agree?