Banks across the globe are witnessing a stagnation of customer experience levels due to rising customer expectations driven by the proliferation of Internet/ technology firms. Also, there has been deterioration in the profitable customer behaviors. While banks have been focusing on their front-office digital capabilities, they have not been able to meet rising customer expectations and are losing on the perception battle. Banking executives perceive customers to be more comfortable with Internet/technology players and there is a trend of customers opting for non-banking players across the lifecycle stages.
However, all is not lost for the banks. In order to compete with the non-banking entities, banks need to prioritize transforming their middle- and back- offices and they need to critically address the areas of Digitization, Simplification/Agility, and Insights and Data. By adopting a structured approach toward transformation, banks can enhance their abilities to provide an enriching experience throughout the customer lifecycle. With the increasing competition and changing customer behaviors and preferences, the banking industry is at an inflection point, the threat of disintermediation is real and imminent.