Connect with us

Banking

ARE BANKS FAILING GENERATION X?

Published

on

Hamidreza Ghanbari

It is an undeniable fact that most Millennials carry some sort of instinctive ability to understand and utilize digital technology simply because they have been born into a digital era. The older generation, whose birth years range from the early-to-mid 1960s to the early 1980s, also referred to as Generation X, have in contrast either adapted to digital technology after being fascinated by it, or they have been forced to reckon with it in order to survive in a technology driven environment. The banking industry is no different. HamidrezaGhanbari, CEO of Pilatus Bank, believes that Generation X might get left behind as the banking industry is transitioning to more complex FinTech solutions through the use of mobile and online platforms.

Hamidreza Ghanbari

Hamidreza Ghanbari

The Generation X-ers can usually be spotted with a printed boarding pass at the airport, they prefer to read a manual from a booklet as opposed to online, and whereas they book their theatre tickets online, they often prefer to print them as opposed to presenting them electronically. When it comes to their banking requirements, what are their attributes and behaviours? HamidrezaGhanbari, CEO of Pilatus Bank believes that whereas most Generation X-ers have been accustomed to learning new technologies, mainly through interacting with early adopters, they aren’t always enthusiastic in learning new systems, and some might even approach innovation with a high degree of scepticism and a real unwillingness to conform.

Ghanbari says, “Most retail banks, as part of their FinTech strategy, are enabling customers to perform their banking transactions using their smartphones or through online banking; hence, they never have to set foot in a branch.” This might sound like a great solution for banks as a mean of moving away from the old brick and mortar model. However, Ghanbari highlights that this transition has been very muddled, ultimately creating a massive service gap. He states, “Banks have certainly failed to capture customers’ imagination, and that is why you see Generation X still relying on in-person banking, which has given a new life to branch-based models like Metro Bank.”

Ghanbari also recognises that although banks and FinTech companies try to disrupt the market with new technologies, very few have been able to match in-person customer experience in terms of quality of service. People still believe that if they visit a branch they will get the service that they require. He therefore reiterates, “Instead of focusing on the latest technological advances, such as Artificial Intelligence (AI) or hopeless efforts on robo-advisory, banks need to get the basics right. If banks truly want to stay relevant to Generation X, which is at the core of today’s customer base, they have to deliver products and services that are convenient and easy to use.”

The CEO of Pilatus Bank believes that technology should serve as a tool and that human interaction should remain a priority. He explains, “At Pilatus Bank we honour the banker and client relationship. We understand that ‘knowing and being known by your banker’ is still very important for many people; especially Generation X which makes up a very large part of the mass-affluent.”  Pilatus Bank’s digital technology platform is designed based on the client-banker interaction rather than moving towards a pure one-sided and self-service platform. HamidrezaGhanbari of Pilatus Bank concludes that, “We believe this is a unique way of embracing technology whilst still prioritising human interaction where Generation X would not only find it easy to use, but also embrace it as a matter of lifestyle.”

Banking

SoftBank telco unit rotates CEO, Son steps down as chairman

Published

on

SoftBank telco unit rotates CEO, Son steps down as chairman 1

By Sam Nussey

TOKYO (Reuters) – SoftBank Corp, Japan’s third-largest telco, said on Tuesday Chief Technology Officer Junichi Miyakawa would become its chief executive officer, effective April 1.

The change at the top of one of SoftBank Group Corp’s largest assets comes after two years of deliberation, with the telco emphasising the need to “pass on the strengths of its current management system to future generations.”

The rotation is likely to lead to speculation over SoftBank Group CEO Masayoshi Son’s own succession plans. The 63-year-old billionaire abandoned a previous plan to hand over the reins and went on to launch the $100 billion Vision Fund.

The son of a Buddhist priest, 55-year-old Miyakawa is a technical whizz driving projects including the wireless carrier’s 5G build-out. He replaces 71-year-old Ken Miyauchi, a key lieutenant of Son, who took up the post in 2015.

Miyauchi will take the post of board chairman from founder Son, who will remain on the board. A household name in Japan, Son joins business leaders such as former Apple CEO Steve Jobs in being the face of the company he runs.

During Miyauchi’s tenure, the telco had a bumper IPO in December 2018 to feed cash to SoftBank Group as it shifted its focus to investing in tech companies. Son has since further reduced the group’s stake after a series of high-profile stumbles.

Miyakawa takes the helm as the industry faces unprecedented political pressure to cut fees, potentially eating into fat margins in its core business.

Looking to grow sales beyond selling mobile and broadband subscriptions, SoftBank is integrating a hodgepodge of companies including online fashion retailer Zozo and message app operator Line Corp into internet business Z Holdings.

Known for blue sky thinking including flirting with the idea of making cars, Miyakawa’s pet projects include an attempt to deliver broadband via drones. Alphabet Inc said last week it was abandoning its own balloon-based attempt.

(Reporting by Sam Nussey; Editing by Tom Hogue, Shri Navaratnam and Subhranshu Sahu)

Continue Reading

Banking

Over 60’s turning to digital banking up by 90% during pandemic

Published

on

Over 60’s turning to digital banking up by 90% during pandemic 2

More than 90% of people aged over 60 have used online banking for the first time during the Covid-19 pandemic, according to a poll by iResearch Services, highlighting the importance of banks getting digital right in 2021.

In comparison, 17% of people aged under 30 said they were accessing services via an app or web browser for the first time.

The findings show how banks must adapt to help service the influx of new digital users and gain their trust, accelerated by the Coronavirus pandemic. With 97% of 18–24-year-olds trusting their bank with their data, compared to only 33% of people aged over 66.

Commenting on the findings, Gurpreet Purewal, Associate Vice President, Thought Leadership, at iResearch, said: “Our study demonstrates the lasting impact of Coronavirus on how people will access banking services from now on. Banks will be required to refocus on really understanding customer needs in order to engage with the different requirements of each individual customer.

“More than half (54%) of respondents said they are less likely to attend a physical branch after the pandemic. This demonstrates a seismic shift in the way people will access banking services now and into the future.”

In other findings, 63% of respondents said their bank acted in their best interests during the pandemic, but a third said they would consider switching their bank for better, more personalised communication.

Purewal added: “On the whole, High Street banks have emerged with great credit from the pandemic for the way they have supported their customers. As the economy rebuilds, it will be more important than ever that they communicate in the right way to help consumers through 2021 by leveraging digital platforms and understanding their needs fully.”

Asked how banks can improve their communication with customers, ‘connecting on a personal level’ ranked highest, followed by ‘more honest and open dialogue’, a ‘demonstration of how they are helping customers’, ‘more creative campaigns’, ‘consistent messaging across channels’ and finally ‘responsiveness to major events’.

Continue Reading

Banking

Banking on the cloud to create a crucial advantage in financial services

Published

on

Banking on the cloud to create a crucial advantage in financial services 3

By Rahul Singh, President of Financial Services, HCL Technologies

Once considered a revolutionary technology, cloud is now at the heart of agile and innovative businesses. The financial services industry is no exception, and has been a major adopter of cloud-based Software-as-a-Service (SaaS) for its non-core applications. Functions such as customer management, human capital management, and financial accounting have progressively shifted to the cloud. Several banks have also warmed up to using cloud for services such as Know your Customer (KYC) verification. IDC analysts say that public cloud spending will grow from $229 billion in 2019 to almost $500 billion by 2023, and a third of this will be spent across three industries: professional services, discrete manufacturing, and banking. The time is ripe for an increasing number of financial services providers to consider moving more of their core services to cloud.

Adoption is already on the rise

Earlier reluctance to move core activities to the cloud has softened, and many banks have put strategies in place to migrate services, including consumer payments, credit scoring, wealth management, and risk analysis. This significant change is driven by factors such as PSD2 and open banking, which require secure and cost-effective data sharing.

Regulators too were once cautious in their approach to cloud technology, but this is also changing. The Australian Prudential Regulation Authority (APRA), for example, whilst acknowledging the risks associated with cloud, also recognised the risk of sticking to the status quo. ARPA trusted the enhanced security offered by the cloud, and updated its cloud-associated risk advice. Wisely, APRA recommended that banks must develop contingency plans that allow cloud services to be provided through alternate means if required.

Rising pressure from new challengers

The other pressure for incumbent banks is from next generation fintech firms. These are cloud-native organisations, and are able to onboard customers remotely in minutes, roll out new services in days, and meet compliance requirements at lower costs.

As a result, the need for traditional banks to upgrade core systems and integrate the latest technologies is stronger than ever. The COVID-19 pandemic has been an additional driver, highlighting the importance of upgrading and migrating core systems to the cloud. Financial services organisations have been forced to rethink their approach to digital transformation, and pay special attention to a cloud-aligned culture. The industry is recognising how the cloud can address new and ongoing regulatory changes, meet different demands from customers, support the roll-out of emerging technologies, and enable incumbent providers to respond to the relentless competition from fintech firms.

New year, new priorities

As we enter 2021, financial services providers will need to reset their priorities, and go beyond using the cloud for scalability and cost efficiency alone. The new areas to focus on will include:

  • Creating a robust digital foundation: The cloud market is expanding fast, and there is an ever-increasing number of services on offer. Whilst the big three hyper-scalers are the obvious choice, various other players are also gaining traction, such as IBM, Oracle, and Alibaba Cloud. Organisations will need a robust digital foundation to adopt cloud at scale in a secure and compliant way. A well-architected digital foundation, supported by resilient operations, ensures that organisations have continued access to their systems and data, regardless of where employees are located, or what device they are using.
  • Adoption of technology platforms: Enterprises are finding ways to reduce complexity by embracing a platform approach, and increasing the speed of business IT consumption. Physical infrastructure is being abstracted into cloud-based platforms, with data consolidated into data lake platforms. Software products like Apigee are being offered as capability platforms to drive better analytics and intelligence.
  • Enhancing IT security: Cloud offers organisations greater security than on-premises servers, if implemented correctly. Financial services organisations have relied on control and compliance-based security for years, but these practices are increasingly vulnerable to cyber threats. Whilst service integrators create robust cybersecurity solutions for financial services organisations, cloud providers are also looking to provision industry-specific security and regulatory measures like end-to-end data encryption – making it easier for financial services organisations to be compliant whilst migrating to cloud.
  • Driving innovation: Cloud is the fundamental factor behind the ability of fintechs to innovate rapidly. Using cloud, financial services can leverage new technologies and tools like augmented reality (AR), virtual reality (VR), natural language processing (NLP), machine learning (ML) and the Internet of Things (IoT) to unlock new processes that improve customer interaction and experience with portable real-time services. Whilst fintechs have led the way in cloud-based innovation through open banking platforms, some of the leading banks are also adopting cloud to simplify their business processes, including KYC as a Service, to enhance customer experience.
  • Enterprise synchronisation: Effective collaboration, both internally and with external partners, is crucial to success in the ever-expanding financial services ecosystem. Cloud allows businesses to integrate collaboration through shared tools and platforms. This is a critical ability as it leads to faster decisions and improved innovation cycles.

Legacy systems hold banks back from improving revenue generation and restrict their ability to build a responsive and resilient business. Cloud is a key factor in the success of challengers: traditional banks have no time to waste in migrating their core systems to cloud and building a secure future.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Global Plant-based Butter Market to exhibit CAGR exceeding 7.5% through 2030 4 Global Plant-based Butter Market to exhibit CAGR exceeding 7.5% through 2030 5
Research Reports8 hours ago

Global Plant-based Butter Market to exhibit CAGR exceeding 7.5% through 2030

FMI in its recent study of the Plant-Based Butter Market states that the market is set to surpass US$ 2.4 Bn within...

Shrink Sleeve Label Applicator Market is expected to grow at a CAGR of 4.4% from 2020-2030 6 Shrink Sleeve Label Applicator Market is expected to grow at a CAGR of 4.4% from 2020-2030 7
Research Reports8 hours ago

Shrink Sleeve Label Applicator Market is expected to grow at a CAGR of 4.4% from 2020-2030

FMI Shrink sleeve label market report projects this industry to reach a high valuation during the forecast period of 2021-2031, which will...

Power Generator for Military Market to progress at 3.4% CAGR between 2020 and 2030 – Future Market Insights 8 Power Generator for Military Market to progress at 3.4% CAGR between 2020 and 2030 – Future Market Insights 9
Research Reports8 hours ago

Power Generator for Military Market to progress at 3.4% CAGR between 2020 and 2030 – Future Market Insights

Future Market Insights (FMI) anticipates the global power generator for military market to surge at a moderate CAGR of 3.4% during the...

Impact of COVID-19 on Micro Perforated Films Market 10 Impact of COVID-19 on Micro Perforated Films Market 11
Research Reports8 hours ago

Impact of COVID-19 on Micro Perforated Films Market

The micro perforated films packaging market is expected to grow steadily with a CAGR of around 5% through the end of 2031....

FMI Presents Positive Outlook for Disposable Cutleries Market After Reporting Negative Growth Amid COVID-19 12 FMI Presents Positive Outlook for Disposable Cutleries Market After Reporting Negative Growth Amid COVID-19 13
Research Reports8 hours ago

FMI Presents Positive Outlook for Disposable Cutleries Market After Reporting Negative Growth Amid COVID-19

Higher degree of awareness which is strongly influenced by the pandemic combined with change in lifestyle pattern in consumers will fuel the...

Can a leader’s level of enthusiasm and optimism really impact the bottom line? 14 Can a leader’s level of enthusiasm and optimism really impact the bottom line? 15
Business9 hours ago

Can a leader’s level of enthusiasm and optimism really impact the bottom line?

By Mark E. Brouker, Captain, United States Navy, founder of Brouker Leadership Solutions Can a leader’s level of enthusiasm and...

JPMorgan to launch UK consumer bank within months 16 JPMorgan to launch UK consumer bank within months 17
Business12 hours ago

JPMorgan to launch UK consumer bank within months

LONDON (Reuters) – JPMorgan Chase & Co will launch a digital consumer bank in Britain under its Chase brand within...

European regulator clears Boeing 737 MAX airliner for return to service 18 European regulator clears Boeing 737 MAX airliner for return to service 19
Business12 hours ago

European regulator clears Boeing 737 MAX airliner for return to service

(Reuters) – Boeing Co’s modified 737 MAX airliner is safe to return to service in Europe, the European Union Aviation...

Wall Street expects near-record iPhone sales despite delay, shut Apple stores 20 Wall Street expects near-record iPhone sales despite delay, shut Apple stores 21
Business12 hours ago

Wall Street expects near-record iPhone sales despite delay, shut Apple stores

By Stephen Nellis (Reuters) – During the last three months of 2020, Apple Inc delivered its flagship iPhone 12 model...

ECB comments suppress euro, dollar perks up ahead of Fed 22 ECB comments suppress euro, dollar perks up ahead of Fed 23
Business12 hours ago

ECB comments suppress euro, dollar perks up ahead of Fed

By Ritvik Carvalho LONDON (Reuters) – The euro fell on Wednesday, under pressure after a European Central Bank official said...

Newsletters with Secrets & Analysis. Subscribe Now