The banking sector must enter the 21st century
The blue-chip corporate reporting season is moving up another gear, with figures being released from the big five banks.
HBSC has announced profits for 2019 plunged by 33%, and are axing around 35,000 jobs as part of a major restructuring plan.
The financial organisations’ strategy overhaul has been designed to improve efficiency and lower cost-to-income ratio. Nevertheless, cost structures must continue to be remodelled to restore growth and deliver opportunities into the future.
According to Ian Pollard, SVP EMEA of digital transformation company Signavio, “The organisation must continue to innovate and accelerate plans to improve digital performance. When measured against disruptors with customer-centric business models, there is a significant gap for banks that do not excel in the area of understanding these customer pain points. The winners will be the ones who are more data driven in ‘demystifying’ what their customers want and who have a solid grasp of the processes that have the greatest impact on them.”
Pollard concludes: “Consumers are particularly concerned about data breaches, meaning financial institutions which struggle to secure customer data and meet regulatory requirements are facing increased scrutiny. No matter how great a service is, organisations facing a deficiency in trust will begin to lose the long-term customers they most associate with brand loyalty. The banking sector must enter the 21st century and ensure that data across specific processes are thoroughly examined against their risk and control frameworks.”