LETTING CUSTOMERS LEAD THE WAY
The bank letting customers lead digital transformation
Banks have to walk a fine, sometimes precarious line between the present and the future.
Half of their customers’ financial concerns are anchored in the now; paying rent, paying bills, paying staff. Cash is king, and without instant access to their money, people’s lives and businesses can very quickly unravel.
The other half is in the future; preparing for big purchases, preparing for retirement, or just preparing for the unexpected. Investing for a comfortable and financially secure future is on everyone’s mind.
So, between these two points, banks must offer a robust service to handle everyday life while giving people the ability to thrive in the future. And it’s this understanding of what customers need that led South Africa-based Nedbank from a single bank in 1831 to a full financial services group today.
"We think banks have an intelligent role to play, to advise both consumer and industrial clients about how to conduct their lives and how to run their businesses more optimally," says Fred Swanepoel, CIO for Nedbank Group.
"So, if a bank does not innovate along with the speed that clients expect, you will risk becoming irrelevant."
Keeping up in a 24/7 world
Giving customers unconstrained access to financial information is essential as real life doesn't necessarily fit within the confines of a bank's opening hours. EVA, the Electronic Virtual Assistant, is one development that has come from this arena of thinking. EVA has been designed to respond to everyday questions and even provide investment advice to people planning for the future.
This approach falls under their 'digital fast lane' business strategy, aiming to innovate tangible solutions using technology. Developing technology for the sake of it doesn't add value. Still, with customer-needs at the forefront, it can continue to introduce robot advisors like EVA and digital investment portfolio management.
"Clients have experiences in other industries… and they develop those kinds of expectations of their banks and financial services providers," says Fred. "So, if a bank does not innovate along with the speed that clients expect, you will risk becoming irrelevant."
This cuts straight to the core of digital transformation. Developing products, services, and new infrastructure in isolation from the needs and wants of the people it's meant to serve is doomed to failure. "We must never forget that technology is driven by people, and so the transformation really is a technology and a people journey at the same time," says Fred.
But keeping up doesn't just mean with customer expectations; cybercrime is big business. If financial organizations can't protect data and finances from hackers, they risk their reputation and their customers' futures. Realizing they needed a secure system, Nedbank decided to use Microsoft’s Azure-based compliance solution to meet its data privacy and security needs.
"Our investment in world-class digital technologies and talent means that we have established an innovative and streamlined IT operating platform that is secure, stable and scalable," says Fred. "But most importantly, [it] delivers a convenient and seamless client experience in support of becoming more client-focused, more digital, more agile and more competitive."
Nedbank has been managing money for 189 years, but its commitment to adapting with the latest technology and customer expectations will keep it trading for the foreseeable future. With one eye on the present and one in the future, financial companies can digitally transform with people at the heart of what they do.
