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Relationship-Based Digital Banking Platforms Help Banks Differentiate

July 14, 2021

How can banks increase stickiness and reduce churn?

To differentiate themselves in today’s fast-paced, increasingly competitive world of digital banking, banks are encouraged to look beyond simply digitizing existing business models for operational efficiency. It is important to find new sources of revenue and they need and build deeper, more meaningful relationships with their customers that will increase stickiness and reduce churn. 

Banks that engage with digital core banking technology partners are able to more easily move from executing account transactions to facilitating customer interactions. A next-gen digital core banking platform with a foundation that is built on data, and is insights driven so they can better understand their customers down to a segment of one to facilitate one-to-one personalized banking experiences. 

Cyberbank is Technisys’s digital core banking platform was ranked the highest in Architecture and Digital Banking Foundation criteria in The Forrester WaveTM: Digital Banking Processing Platforms (Retail Banking), Q3 2020 report. Technisys was named a Strong Performer. The company’s next-gen digital core banking platform is designed to provide the level of flexibility banks need to differentiate and dynamically adapt or adjust the right financial service offering to the right customer at the right time in their life. 

How can banks become an integral part of their customers’ lives?

The needs and behaviors of today’s banking customers are changing. An increased focus and reliance on digital channels, accelerated in part by the global pandemic, means that competition is at an all time high, and customer churn is more prevalent than it’s ever been.

To keep the share of wallet and realize new revenue streams, is it essential for banks to become an integral part of their customers’ lives. In order to do that, banks are increasingly expected by customers to facilitate interactions (versus simply managing transactions), to provide seamless experiences that add value, and to empower customers to feel like they are in full control of their interaction with their bank at every stage of their journey.

This is known as empathic banking. Empathic banking requires a new type of digital core banking solution that facilitates agile ways of working and can reduce time-to-market.

How can banks create new digital banking capabilities?

To truly become an integral part of customers’ lifestyles, it is key for banks to empower their internal teams with insights-driven data that gives them the ability to understand changing customer journeys and adapt existing and create new digital products and services based on those needs down to a segment of one.

To do this effectively, banks gain a winning advantage with a digital banking platform that offers off-the-shelf capabilities that can be easily extended, provides a simple way to adjust products and supports the creation of new business capabilities.

Cyberbank offers a full range of off-the-shelf business capabilities including savings and checking accounts, CDs, personal and commercial loans, budgeting and digital onboarding. The Cyberbank architecture enables in-house teams to define processes, workflows and rules in a low-code environment. This means banks can extend their digital offerings and create new business capabilities without the need for heavy customization or internal R&D.

With an API centric banking platform like Cyberbank, banks can extend business capabilities and realize new revenue streams by building digital ecosystems. They can take advantage of the Open Banking opportunity and integrate with third parties to provide new, disruptive services that add even more value to the customer experience.

How can a next-gen core banking platform help banks gain a competitive edge?

To stay competitive, banks are encouraged to embrace a digital core banking platform that can help them differentiate. Platforms that are designed around the concept of structural flexibility (i.e., create and distribute tailored financial products dynamically) offer a clear market advantage. By leveraging structural flexibility with platforms like Cyberbank, banks can:

  • Gain a competitive edge with a flexible system that drives dynamic product and service innovations.

  • Create and launch new digital banking products at market speed.

  • Improve customer service by providing multi-channel financial services with a seamless interface across multiple platforms.

  • Gain an integrated customer view across all points of contact, with a client-tailored data repository that combines customers’ information, products and transactions at a multi-dimensional level.

  • Minimize operational risk by implementing a system designed around industry compliance standards.

  • Use monitoring, control and corporate governance tools to trace and resolve transactional issues.

  • Keep systems updated on regulatory changes with intuitive rule management tools.

  • Align the technology with business needs, making it easier to introduce new services and operations with a minimal impact on IT resources. 

Why is the architecture of a digital core banking platform important to achieving agility and speed?

To achieve the agility and speed needed by today’s banks, a digital banking platform with a modern architecture is a smart step forward. Look for architecture that is cloud-based and API centric. An architecture that uses modern technologies such as Kubernetes, and designed to support flexibility through its service composition with a lean core and architectural decoupling.

Technisys’s Cyberbank platform is a next-gen core and digital engagement accelerator with a single, ultra-lightweight architecture. The platform’s seamless, end-to-end digital backbone empowers banks with the level of flexibility they crave to dynamically adapt to changing consumer behaviors, create new offerings, or adjust current financial products and services in a timely fashion.

The platform is cloud-native and cloud-agnostic, enabling banks to run and deploy anywhere and scale linearly with 100% stateless architecture. It can be deployed using a container-based architecture to accelerate the time to market for digital innovations, optimize infrastructure costs, increase resilience and make it easier to integrate with DevOps processes.

Learn more about the Cyberbank next-gen digital core banking platform at this link.

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