The future of Banking: Why financial institutions should now focus on Exponential Banking

The future of Banking:
Why financial institutions should now focus on Exponential Banking

Stuttgart, 8 May 2018 – Thanks to massive market pressure and ever increasing needs to adapt to customers’ demands for more convenient and fast interaction, it is key for financial institutions to find answers to the questions: How do we get back on the growth path? What will the future of banking look like? How can we walk the path of digitalisation successfully and benefit from rapid technological development?

A crucial time in the digital transformation of the financial services industry

As a strategic technology partner for the financial services sector, GFT’s vision for the future of banking involves digital transformation through the use of new technologies. Therefore, GFT has set up a multidisciplinary team of professionals who work exclusively in this new international business unit. Today, GFT announced the creation of the new business unit, which will specialize in the development of its exponential banking strategy.

“A new era in banking has begun. Exponential banking is the natural evolution of increasingly rapid digitalisation in the financial services industry, and is itself powered by the exponential growth in technology over the past half-century. It is now time for banks to embrace the opportunities given by new technologies. At GFT, we’re eager to help our clients embark on the journey to exponential banking because we're convinced that it’s the road to success”, says Manuel Lavín, Director of Digital Transformation at GFT Spain and Head of the new Exponential Banking business unit.

Exponential banking: a lever for digital transformation

Primarily concerned with the size and power of hardware, Moore’s Law has now evolved to include mobile, cloud technologies, artificial intelligence, the Internet of Things, augmented and virtual reality and data analytics or robotic process automation. More and more information is available for processing and at a much greater speed.

Financial institutions can benefit enormously from new technologies: by delivering more personalised and customised products and services at the most appropriate time with the least time lag between concept and availability. “We’re convinced that exponential development will act as a lever for change in the digital transformation of banks, accelerating their digital roadmap and providing a capability for continuous change”, says Lavín.

Four pillars for a future-proof system

Successful implementation of the exponential banking approach requires transformation on three levels: Business, Technology and Organisation. GFT works with clients to identify strategic customer journeys that can be leveraged to transform four key areas of banking operations:

Customer Experience, Open Organisation and Data Management as well as Process Optimisation.

Overlaying these four key banking operations areas are four pillars that GFT has identified as crucial to its exponential banking strategy. “New technologies offer tremendous potential across four main pillars: Open Banking, Augmented Banking, Automation Banking and Cognitive Banking, which, when properly combined, can produce the most future-proofed system available for any retail bank of today”, explains Lavín.

  • Augmented Banking enhances the customer’s relationship with the bank by delivering personalised assistance and advisory services such as chatbots, robo-advisors or new ways of interacting through virtual and augmented reality. GFT has experience of implementing major augmented banking projects for large European banks, such as an initiative to make ATMs accessible to the visually impaired through a mobile application, or obtaining a loan for the purchase of a car through augmented virtual reality.
  • Open banking leverages exponential technologies not only to comply with regulations such as PSD2 and GDPR, but also to explore new business models based on an open and connected marketplaces.  GFT is currently working on different initiatives related to the development of banking APIs and infrastructure such as Bank as a Platform (BaaP).
  • Cognitive Banking enables banks to create artificial intelligence solutions based on leveraging big data and fast data to enable more accurate predictions, improve knowledge of the business and enable more accurate decision-making that leads to smart and innovative ways of interacting with customers. As part of this pillar, using the most modern advances in deep learning, GFT has developed chatbots and robo-advisors, as well as cognitive account management solutions for large banks.
  • Automated Banking is based within the trend of operational efficiency and robotization of processes. It consists of automating processes that are currently being done manually. According to estimates by McKinsey, in the next few years between 10 and 25 percent of a bank’s processes will be carried out by robots. In this area, GFT is developing numerous automation solutions, such as the automatic classification of lawsuits or the execution of application tests with robots.

To find out more about exponential technologies and generating new business models in banking, please visit Banking 2020 – Exponential Technologies in Financial Services.

A new era in banking has begun. Exponential banking is the natural evolution of increasingly rapid digitalisation in the financial services industry. It is now time for banks to embrace the opportunities given by new technologies. At GFT, we’re eager to help our clients embark on the journey to exponential banking.”
Manuel Lavín Director of Digital Transformation at GFT Spain and Head of the new Exponential Banking business unit
Manuel Lavin

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