Technology Opens New Doors of Growth for Financial Institutions

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Technology Opens New

Doors of Growth for

Financial Institutions

Knowledge@Wharton- Wipro Future of

Industry Series: Financial Services


In a Tough Business Environment,

Technology Opens New Doors of

Growth for Financial Institutions

Knowledge@Wharton-Wipro Future of Industry

Series: Financial Services

• Financial institutions are still

recuperating from tighter regulations and

customers continue to be wary

• Technology has the potential to win back

consumer trust and deepen those

relationships using business analytics,

social and mobility platforms


Meeting demands of the new-normal

Change the cost curve through business and process simplification

Rethink how technology can help them deliver a better customer experience across channels and markets

Rebuild customer trust, by being best in class in whatever segment or geography

Invest in analytics to not

only respond to risk but

also understand the new

“digital customer” and

use the insights to make

better business

decisions

All these have to be achieved in a

tightening regulatory environment

where there is still a lot of catching up

to do on risk management and

compliance

THE STEPS


Managing tightening regulation

Technology enabled

variabilization or pay per use

processes

IT Infrastructure Management Regulations are not a

bane- they promote stability,

strengthen consumer

protection and increase

transparency

Technology enabled process frameworks to comply with

regulation

Technology can help banks restructure their balance sheets and corporate

governance processes to comply with emerging regulations


Tapping under-served markets

The top six banks account for 70% to

75% of the total IT spending, most

service providers gravitate towards

them, says Ghosh. However, the IT

spending of the Tier-2 or Tier-3 U.S.

banks are also significant, but this

market remains relatively untapped

Large banks could also use technology to create a

unified process covering investment banking,

asset management and asset servicing, where

many processes are typically duplicated Variabilization offers technology

providers an opportunity to serve

smaller banks


Making new geographies work

Technology providers can help financial institutions set up

their infrastructure on a turnkey basis in a new location.

While the bank focuses on sales, marketing and business

development, its IT services vendor runs back-office

operations

“One big lesson” from the recent economic downturn was that most U.S. banks and

insurance companies were overly dependent on mature markets; says Soumitro

Ghosh, SVP, Finance solutions at Wipro Technologies


Re-engaging consumers with technology

Trust and simplicity are critical for financial institutions to recapture lost customer

loyalties and deepen those relationships

Technology such as data analytics can help achieve a

deeper understanding of customer sentiments

IT can also be used as a competitive tool that promises

either security or financial freedom

Mobile platforms will be crucial for providing differentiated services- a key requirement

though is localization

Social platforms also help banks acquire new customers and sell

more products to existing customers – though building trust

first, is more important


Analytics for better understanding

Data analytics can help banks boost performance,

understand customers & risks better

Provides a single

customer view

Understand customer

preferences better

Improves risk management

and fraud prevention

Improves efficiency by

providing better

visibility of outcomes

Pricing gets more

efficient


Conclusion

While technology promises gains on many fronts, financial institutions

and regulators have to be cautious and invest more in capturing data on

customer behavior and their operations. At the same time they should

also integrate risk and fraud management in meeting compliance

requirements


For more details please visit the link below:

http://www.wipro.com/insights/academia-collaboration/wipro-

FOI-K@W-series/in-a-tough-business-environment-technology-

opens-new-doors-of-growth-for-financial-institutions

http://www.wipro.com/insights/academia-collaboration/wipro-FOI-K@W-series/in-a-tough-business-environment-technology-opens-new-doors-of-growth-for-financial-institutions





































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Technology Opens New Doors of Growth for Financial Institutions

Technology

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