High street banks must invest in the right technologies to attract customers away from digital alternatives, a leading banking software expert has urged.
“With 2018 drawing to a close, many high street banks will be reflecting on a tough year,” said Mark Aldred, Banking Specialist with Auriga. “It’s been a year of IT failures, more branch closures and the seemingly exponential growth in popularity of the multitude of challenger banks entering the market. However, 2019 should be the year that high street banks respond to the challengers. We’ve already seen challenger banks having to adapt to demands for cash deposits this year, and the gap is certainly closing.”
Getting technology right is the first key step in any fight back, said Aldred: “Challenger banks had a distinct advantage in that they have been able to build platforms for the next generation customer from scratch,” he pointed out. “Heritage banks need to offer the right solutions in the right moment to their customers, but without the right investment in technologies like the cloud, they’re going to struggle to adapt.”
He believes that the need for more agile technology is at its most apparent within the high street branch and in a bank’s ATM channels: “It’s time for a new approach given the potential advantages of cloud-based technologies for enhancing ATM services, operations and above all the customer experience,” he said. “In the face of increasing competition and a fragmenting ATM infrastructure in the UK a cloud-based architecture makes managing the ATM networks that customers demand significantly more cost effective and productive. As banks look to embrace Open Banking the right technology will be more important than ever.
New financial services providers want to integrate and get to market as quickly as possible, banks who want to compete need to do the same.”