Challenge for Capital Markets
Following the banking crisis, the banking industry is now facing the next existential challenge: the transformation to the digital bank. This includes not just the digitization of products and processes, but also a fundamental change of banking culture and the mindset.
This change has to take place in a market environment, which is defined by a changed customer behaviour and increasing customer expectations, continuous regulatory requirements, high margin pressure in a low interest environment, the search for innovation and talent, cyber-crime threats and growing competition from new market participants (technology-giants and fin-techs), but also banks that already have successfully completed digitization of their business models. New products and services, but especially new digital distribution models (platform economy) question the sustainability of the bank.
This transformation influences not just the retail business, but also the capital markets branches, especially asset management and wholesale banking. As entrepreneur, capital markets and technology experts, we comprehend the challenges holistically and support in the recommended fields of action:
Digital transformation requires for the company and the market a clear and transparent target image of the future business model in a digital world. The positioning of an asset or wholesale manager in the dimensions of product specialist, relationship expert or platform/technology provider is a decision which will result in major investment in the overall organization and the market presence.
Integration of Marketing and IT
Both the brand and technology have to progress hand-in-hand into the digital future. Not just the company, but also the added value for the user have to be visible through the new digital presence. This applies to all digital channels, both mobile and stationary. It must be ensured that content and functionality are always available, reliable and up-to-date. Promised service quality must be delivered. Especially corporate customers expect high quality, faults often will not be excused and will result in the loss of the customer.
Digital Customer Advice
Using static and dynamic data analysis, customer requirements can be identified and purposefully (personalized) placed with the customer. AI and machine learning solutions can be applied here. Tool-based customer service and customer self-service tools drive customer experience and retention.
The customer-centred model and excellent user experience has to be implemented cross-channel (digital and analogue, mobile and stationary). Base requirement for this is to ensure data consistency across all channels.
Portal and platform integration has to provide access to all relevant data and markets for the clients and provide tools to enable them to act both self-sufficient or in collaboration with their consultants.
End-to-End Automation based on a flexible IT Architecture
Digital solutions have to provide significant processing time improvement. Complex onboarding processes, especially in the corporate customer sector, can be significantly shortened this way.
Straight through processing (STP) has to begin in the frontend already – for trade settlement, STP is the status quo in a minimum cost transaction bank. Through the use of digital decision making methodology (including standards like DMN, as well as algorithms for automated investment advice), consistent utilization of process/workflow engines, the cloud and API and middleware technology, digital infrastructure can be built, that can flexibly adapt to continuous change.
Efficient data management is a prerequisite for successful digital transformation, enabling the full use of data for analytics, personalization, automation, decision making, monitoring and control. A data strategy that defines responsibilities, quality criteria and processes, has to be coordinated and implemented.
Methodology and Culture
Agile approaches like SCRUM and Service Design Thinking are working methodologies which require a corporate culture defined through flexibility, the ability to adapt quickly, and the determination to actively shape the future.
In this, the customer perspective is always at the centre of all initiatives. Therefore, the use of technology is an instrument of intensification of the customer relationship, and does not replace direct contact. People and relationship management remain the critical factor of success in asset management and wholesale banking.