Business Growth

Will the bank of the future be technological? New vision

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Accueil » Blog » Business Growth » Will the bank of the future be technological? New vision

Traditional banks can thrive in the digital era by adopting new visions and embracing technological advancements while focusing on human-centric approaches. Artificial intelligence and other digital tools are already reshaping the financial sector, creating new business models and improving efficiency and customer experience. To fully capitalize on digitalization and remain competitive against tech-heavy banks and digital giants, traditional banks must address significant challenges like outdated legacy systems, stringent regulatory demands, and resistance to change, leveraging both digital tools and human expertise under strong leadership.

Current challenges and the absolute need for innovation

Traditional banks have been facing unprecedented challenges in recent years, including 2008 subprimes’ crisis, increased competition from fintech’s, changing consumer preferences, increasing operational efficiency, and the impact of the COVID-19 pandemic. To thrive in the digital age, traditional banks need to take a new approach and leverage the potential of digital technologies, including AI, big data, and blockchain, while focusing on people and talent primacy.

The transformative impact of artificial intelligence

AI has already transformed the financial industry in numerous ways, from fraud detection and risk management to personalized customer service and investment management. Banks that embrace AI can gain a competitive advantage by eliminating value-destroying processes, automating routine tasks, reducing costs, and enhancing customer experience. However, the adoption of AI requires a strong leadership commitment, highly skilled workforce, and robust infrastructure (see article Robotize or cancel?).

Upgrading systems for digitization

One of the main challenges facing traditional banks is their legacy systems, which can be difficult to integrate with new technologies. To overcome this challenge, banks need to prioritize upgrading their systems and investing in the necessary infrastructure to support digitalization. This requires a long-term vision and significant investments, that can lead to improved efficiency, increased profitability, and enhanced customer satisfaction.

Regulatory maze as opportunity

Another obstacle to digital transformation is regulatory requirements implementation, which can vary by jurisdiction and industry. Banks need to navigate complex regulatory landscapes while maintaining compliance and ensuring data privacy and security. However, regulatory requirements can also present opportunities for innovation and collaboration, as people work together to develop new and innovative solutions and comply with changing and demanding regulations.

Overcoming resistance to change

Finally, traditional banks need to overcome resistance to change and embrace a culture of innovation. This requires strong leadership, effective communication, and a willingness to efficiently experiment and learn from failures. Banks that foster a culture of innovation can attract and retain top talent, create new business models, and drive growth.

Shaping banks’ digital future

In conclusion, traditional banks have a unique opportunity to succeed in the digital age by massively investing in AI. By upgrading legacy systems, leveraging regulatory requirements, and fostering a spontaneous culture of innovation, and by focusing on people, traditional banks can position themselves for success in the co-construction of the world of tomorrow.

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