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Banking industry

Coping with emerging trends in retail banking 2020

Although many have predicted the doom of traditional retail banking with the rise of new entrants especially in fintech that focuses on superior customer experience, we believe that traditional banking companies still have a bright future. The emerging trends in retail banking such as AI and RPA are aimed at enhancing customer experience and matching performance with that of innovators in the banking industry. Apart from these, we can also expect several transformations in the approach and operations of banking companies. Infiniti Research has worked with dozens of banking companies across the globe and played a pivotal role in helping them to adopt agile business strategies to survive the dynamic market conditions. Based on our observations and expertise, here are some of the emerging retail banking trends that players need to be prepared for in 2020.

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Emerging trends in retail banking 2020

Emerging trends in retail banking

Reorganizing around customers rather than products or channels


In 2020, an interesting emerging trend in retail banking that we can expect to see is that banks will gradually move their focus away from products and services and begin organizing themselves around creating exceptional customer experiences. They will aim to develop the ability to view customers as a single unit by recognizing their uniqueness and tailoring offerings to suit their needs rather than being ‘pushy’ to buy banking products or avail different services.

The growth of social media

Social media is not just one of the emerging trends in retail banking, but it has become widely popular across industries. In 2020 and beyond, retail banking companies will embrace social media platforms as a primary source to connect, engage, inform, and understand their customers. It is also expected to become an important platform where customers research banking products/ services and make a purchase decision. Mastering social media capabilities will be a core competency for retail banking companies to cope with the emerging trends in retail banking.

As the pace of change is increasing in the retail banking space, companies must ensure that they are well positioned to align with the emerging trends in retail banking. Get in touch with an expert to learn how we can help you stay updated and cope with the retail banking trends.

Cybersecurity in building customer trust

Security of transactions is one of the most crucial factors that banking customers consider while choosing their banking partner. To avoid cybersecurity glitches that have occurred in the past, we can expect to see several top banking companies investing heavily into preventing cyber-attacks. This year onwards, you can expect to see leading banks develop cyber-security strategies that are aligned with their business objectives, risk-management protocols, and regulatory requirements. Since several retail banking companies lack the ability to tackle this issue, they might partner with third-parties to provide cyber-security assistance.

Two factor authorization to become common in transaction authorization

Although biometrics is believed to be unique, it can often be replicated and can result in fraud. As a result, two factor authentications will soon become mandatory and one of the most notable emerging trends in  retail banking industry. This means though retail banks will allow fingerprint or voice recognition in transaction authorization, it will remain tied to a replaceable physical device such as a smartphone.

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Winning Customer Mindshare in the Banking Sector with AI-Driven Customer Intelligence

Up to a few years back, retail banking customers had modest expectations in terms of banking experience and loyalty. In the last few years, however, the balance in which retail banking companies could succeed on their own terms has begun to shift under the pressure from changing customer expectations and preferences. Furthermore, new entrants in the banking sector such as fintech companies are also further pushing the boundaries for customer experience. Today customers increasingly expect interactions with their banks to be as sophisticated and personalized as the ones provided by industries like retail. As such, it is becoming extremely critical for banking sector companies to step-up their customer intelligence capabilities to better gauge customer needs and think beyond customer experience to a broader measure – customer mindshare.

Customers leave a lot of interesting footprints on the internet. Artificial intelligence (AI) driven customer intelligence solutions is a useful source for providing more insights and better automation for banking companies. Here some of the key reasons why experts at Infiniti think that AI driven customer intelligence could radically transform and simplify processes in the banking industry.

Customer intelligence is a powerful tool to boost sales and gain greater customer mindshare. Request a free proposal to know how Infiniti’s customer intelligence solutions.

Benefits of AI-driven customer intelligence in banking

customer intelligenceEnhanced personalization

Banks sell products in the form of loans, accounts, and investment service. The customer data collected in the process needs to be turned into useful insights in order to personalize and enhance offerings. AI -driven customer intelligence solutions will help banking sector companies to not just understand what the smartest recommendation is to enhance customer journey but also how to develop the most personalized products or services that can be delivered at the right time.

Customer interactions create abundant data for companies to act upon. Not sure how to turn it into actionable insights. Get in touch with our experts to learn how we can help your business turn data into dollars.

Improved trust and customer loyalty

Aggressive sales techniques no longer work well with customers, given the fact that they have ample options available at their disposal. AI-driven customer intelligence helps businesses to better transform their customer outreach based on customer behavior and preferences. Leveraging AI in customer intelligence solutions can also help businesses create meaningful conversations with the customers by identifying when they require banking related advice.

Capture opportunities

Whether it is a review or of a product/ service or customer feedback, any data of customer interaction is highly valuable for banking companies. This data goes wasted if customer intelligence based on AI is not used to curate and analyze data to identify missed opportunities. This allows for creating more personalized products and engaging interactions for the customers.

Learn how our solutions can help you stay updated with the latest retail industry trends

Investment banking industry

An Overview of the Top Investment Banking Industry Challenges

The investment banking industry is on a new wave of change and transformation. As the financial services sector is still recovering from the global economic crisis, investment banking companies in the US are still struggling to regain their former levels of profitability. As a result, several major players in the US investment banking industry have announced their plans to move from traditional underwriting business to other activities including mergers, acquisitions advisory, and fundraising. This change has been largely fueled by recent regulatory changes that have made some investment banking activities more expensive than the others. Furthermore, the rising need for sophisticated in-house applications, innovative customer-facing portals, and higher transparency and security across the board mean that companies in the investment banking industry are faced with substantial pressure on all fronts. This blog covers some of the major challenges facing companies in the investment banking industry right now.

We help our investment banking industry clients to deal with changing operating model structures, business and finance transformations, and evolving customer expectations that redefine business operations. Request a free proposal for more insights.

Investment banking industry challenges

Investment banking industryRoadblocks in cost reduction efforts

Companies in the investment banking industry have been constantly pursuing strategies to achieve sustainable cost efficiency. However, several factors including declining revenues, excessive costs, and developments in digital and regulatory pressure have increased challenges for investment banking companies in the US, making it incredibly difficult to achieve cost reductions. Leaders in the investment banking industry who are seeking sustainable cost reductions should strive to strike a balance between optimizing the existing core activities while investing in new engagements.

Enhancing client experience

Customer-centric experiences in B2C business models are shaping client expectations in the B2B realm as well. As a result, investment banking industry companies are finding it difficult to meet these changing client demands and expectations. Investment banking companies can begin by assessing the existing client experience and mapping out the client experience standards that they want to deliver to identify necessary changes that could be made to their delivery channels and feedback and monitoring mechanisms.

Reimagine how your business profits are generated and transform your client experience with our advanced solutions. Get in touch with our experts to know more about our solutions.

Cybersecurity

Cyber-threats are rising at an unprecedented rate and legacy technology have become a risk factor. They are more prone to unpatched vulnerabilities and create compatibility issues in M&A situations. Furthermore, there were several mergers and acquisitions in the recent times as banks sought to consolidate their protection under the law. But often the legacy infrastructure acquired by a bank through M&A activity is not up-to-date and features extensive vulnerabilities that create additional fire-fighting challenges for IT teams of companies in the investment banking industry.

Talent acquisition

Companies in the investment banking industry are still struggling to retain top talent despite introducing new measures such as faster promotions in a bid to attract employees. One of the prime reasons for this is that young professionals are finding themselves more drawn to alternative sectors such as technology or innovative start-ups. Moreover, the fact that the lifestyle of an investment banker is typically associated with long hours and tight deadlines is also part of this permanent trend. Investment banking companies must identify effective ways to attract and retain talent in their organization.

Learn how we help companies in the investment banking industry to drive disruption.

Commercial Banking Trends

Trend Watch: Top Commercial Banking Trends 2019

Currently, there is intense competition for the wallet share in the commercial banking sector. This is primarily because unlike retail banks that rely on a single firm to handle financial needs, corporate clients often maintain relationships with several banks. Moreover, the expectations of commercial banking customers are unprecedently high due to which innovators such as fintech are threatening to grab the most profitable commercial banking segments. This makes it imperative for players in this sector to be on par with all the latest commercial banking trends and enhance the way they serve clients. Several forward-thinking players in the commercial banking space have already begun adopt key commercial banking trends and integrate their systems with that of their clients in order to extract deep customer insights. The key to remaining competitive for commercial banking companies is to be cognizant of developments internally and externally.

Securing the top position in the market can be challenging, but not impossible. Request a free proposal to know how we provide clients with solutions that cater to their specific business challenges.

Commercial banking trends 2019

Commercial Banking TrendsBolstering customer experience with digital transformation

Banks make more profits from corporate customers when compared to retail customers. However, many commercial banks have failed to upgrade their archaic legacy systems and manually-intensive processes. Digital disruptions are slowing making their way into the commercial banking sector. Taking cue from the retail sectors, top companies in the commercial banking industry are investing in digital transformations to facilitate exceptional customer experiences. This is one of the biggest commercial banking trends right now that would propagate better customer experiences for commercial banking companies.

Collaborations to interlink value chains

When compared to retail banking, the commercial banking sector is relatively behind in terms of digital revolution. Corporate customers expect their banks to provide facilities such as real-time access to banking services. To make this a reality, commercial banking companies are looking at options to collaborate with these corporations and interlink their value chains. Such commercial banking trends will see rapid growth this year with several players already starting to develop customized solutions that can connect directly to consumers.

Innovation and disruption will not only transform how established commercial banks need to service their clients, but it will also evolve what clients come to expect. Get in touch with our experts to know how Infiniti helps banking sector clients stay updated on the latest commerical banking trends.

The rise in the use of AI

There has been a considerable rise in the amount of structured data collected by banks over the last few years. The use of both structured and unstructured data has been driving strategic and operational business decisions. As a result, the use of machine learning and artificial intelligence capabilities are becoming the most sought after commercial banking trends. These capabilities would help commercial banking companies to provide superior customer experience and minimize pain points for corporate clients.

Gain more insights on commercial banking trends and learn more about Infiniti’s solutions for the commercial banking sector.

Pricing strategies

Banking Industry Price Analysis: Identifying innovative pricing opportunities for a retail banking Client

Although modern banking companies have invested heavily in efforts to improve customer experience, most of them tend to overlook ways to innovate their pricing strategies using effective banking industry price analysis solutions. Banking sector companies generally react to the changing regulations on product structures by modifying their pricing tactics to emphasize more on costs and risks. Meanwhile, several other sectors including airlines, ride-sharing services, hotels, and digital media continue to experiment with innovative pricing strategies, and their customers seem to have accepted the new pricing schemes with little resistance. Over the past couple of years, a few players in retail banking have made strategic pricing a core discipline and have consequently established a dominant presence in the industry.

Is your business up-to-date with the latest pricing trends in your sector? Request a free proposal to know how experts at Infiniti can help you develop optimal pricing strategies for your business.

Business challenge

The client is a renowned retail banking company based in Central Europe. Despite the banking sector slowdown in Central Europe during the 2008-09 global financial crisis, the sector is gradually benefitting from strengthened regulations and growing market opportunities. The client was facing predicaments in identifying customer needs and keeping up with the changing customer expectations in the retail banking sector. Furthermore, they wanted to fix the misalignments in their existing pricing strategy. With the help of Infiniti’s banking industry price analysis, the client also sought to optimize pricing innovations and boost promotional activities in order to attract the millennial crowd.

Pricing for products of services in a highly competitive market could prove to a highly challenging task. Get in touch with our analysts to know how our pricing solutions can help you risk-proof your pricing decisions.

Importance of banking industry price analysis

banking industry price analysis

Solutions offered

The experts at Infiniti Research followed a three-phased approach to banking industry price analysis. The first phase of the banking industry price analysis solution involved identifying the target customers and grouping them into various sub-segments. The second phase of the banking industry price analysis included understanding the needs of different retail banking customer groups and pinpointing the gaps in fulfilling their expectations. The final phase of the banking industry price analysis involved a comprehensive study on different innovative pricing strategies followed by retail banks in the central European market as well as those of prominent retail banks in other countries and shortlisting the most attractive and feasible ones for the client.

By leveraging Infiniti’s banking industry price analysis, the retail banking client was able to categorize different customer groups and create targeted promotions for each of these segments. They were able to understand where they fell behind in terms of their existing pricing strategies and more attractively align the prices of existing products and services. Using the banking industry price analysis, the retail banking company was also able to implement promotional activities such as cashback rewards to attract younger consumers.

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Banking industry trends

Top Banking Industry Trends Dominating the European Market

Banking companies across Europe are gradually moving from traditional banking techniques to digital banking in order to enhance customer experience and stay competitive in the market. Although European banks are facing the heat from increasing political volatility, new regulations, and persistent questions about the technological transformation of banking, the sector is expected to mark a positive growth in the next few years. Experts at Infiniti have identified some of the most attractive banking industry trends that will dominate the agenda of European banking executives and will transform the industry in the years to come.

Bankers across Europe believe that technology and process innovation will transform the retail-banking landscape in the next three to five years. Are you prepared for this change? RFP to know how our banking industry analysis can help you stay updated with the opportunities and challenges in the market and formulate effective strategies to stay competitive in the market.

European banking industry trends

banking industry trendsDigitalization of corporate banking

As the continued dissatisfaction of national and multinational companies relating to service dissatisfaction becomes impossible to ignore, corporate banks are finally making the leap to go digital. The back-office operations such as cash management have already been digitalized and are expected to extend through middle office (which involves the creation of new banking products) and front office (relationship managers will get hands-on experience in using digital tools) operations this year.

Growth of Fintech and RegTech

Last year, Fintech and RegTech spending continued to proliferate in EMEA’S emerging markets. With new firms entering the competitive environment, such banking industry trends will continue to persist. Banking industry trends such as increasing spending on FinTech and RegTech is intrinsically linked with improving levels of financial inclusiveness.

For more insights on how to better understand banking industry trends and threats, as well as how European banks should respond to them, get in touch with our experts!

Open banking standards

Banking industry trends like open banking has taken the more advanced economies of EMEA by storm. In open banking retail/corporate customers are in control of sharing their financial assets and personal data with third-party providers of their choice. To enable this, banks open-up and share their infrastructure (including data and functionality) and documentation (code) with third parties, usually through Application Programming Interfaces (APIs). An open banking standard prescribes the steps which banking sector companies must take. In Europe, several top banking corporations are making a collaborative effort to create an open API standard.

Technological innovations to promote financial inclusion

One of the most prominent banking industry trends this year will be to connect and reconnect customers to the financial system. While advancements have been made to bridge the gap between people having access to banking services and those who do not, progress needs to move at a faster pace. This requires the collaborative efforts of national governments, financial service providers, telcos, and other technology vendors.

Acceleration of platformification

Bundling together multiple services into one online platform is known as platformification. Banking industry trends such as platformification is aimed at providing an efficient, automated, and integrated customer experience. This consequently drives improved financial and operational performance.

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banking sector

Category Scan: Retail Banking Market Updates and Future Trends

The retail banking industry is undergoing a wave of change. To lead the change, it is essential for retail banking companies to choose the right business strategy. Experts at Infiniti Research have engaged in discussions and surveys with top global banking leaders and several retail banking customers to gauge their opinion on the changing retail banking landscape and gain a better understanding on the upcoming trends in this sector. A fair majority of the prospects who engaged in this discussion agreed that technology is rapidly morphing from an expensive challenge into a potent enabler of better customer experience and effective operations. Despite this, attracting new customers is one of the biggest challenges facing retail banking companies today.

The article below scans the category for retail banking services in its entirety to help companies and customers in the sector to understand and stay abreast of the latest news, innovations, and market developments.

Retail Banking: Recent Innovations and Market Updates 2019

retail bankingPersonalization is the new normal

Personalization is gradually becoming a primary mechanism for retail banking companies to enhance their customer satisfaction as well as to increase their economic value. Customer retention is often seen to be higher at banks that understand customers’ financial needs and interact with them in ways that reflect their preferences. In an era of hyper-personalization and competitive pressure, retail banking customers expect meaningful insight and advice-on-demand from their retail banking partners apart from the speed and convenience of transactions.

Personalization is impossible unless you deep-dive into customer data and gain a clear understanding about your target customers. Request a free brochure to know how our customer intelligence solutions can help your business achieve this

More local markets may close for outsiders

Traditionally restricted markets including China, India, and Korea will be joined by others in the case of restricting market share for foreign institutions through local regulation and subtle preferences wherein domestic institutions are more favored. Consequently, the ability of emerging market financial institutions to penetrate markets outside of their home countries will become limited. This can only be avoided in case the regional and bilateral trade agreements concluded over the next five years drives select opportunities for certain institutions where financial services are included in the scope of the agreements.

Branch banking will undergo significant transformation

As technology enables every aspect of online retail banking, reducing the usage of hard cash, traditional branches are slowly losing their importance. Given their high-fixed cost, branches will need to become increasingly productive, or significantly less costly. Several retail banking companies have already begun cutting down on staffing, closing the most unproductive branches, and have started experimenting with new branch concepts. These trends are expected to accelerate as customer demands and expectations evolve. However, we do not expect branches to face a full shutdown, rather they may continue to function as centers for flagship information, advisory and engagement hubs, and provide smart kiosks that offer service, sales, cash, and video contact with a range of specialists. The branch size and costs will be reduced by introducing new models and migrating transactions to low-touch digital channels. Although the human touch will always be available, digital channels are expected to dominate the future of retail banking sector.

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Cybersecurity will be paramount

Recent cases of high-profile data breaches have generated fear and uncertainty among retail banking customers, prompting retail banking companies to undertake strict measures to curb such incidents. As the regulation over cybersecurity is rising, banking companies will need to do more in terms of intervening and keep pace with the constantly growing and changing cyber threats. It is expected that by 2020 leading banks will have developed advanced cyber-security strategies that are more aligned with their business aims, risk-management protocols, and regulatory requirements. Since many banks lack the capabilities and resources to tackle these issues on their own, such companies will partner with third parties to leverage such strategies.             

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product research

How Banking Companies Can Keep Themselves Unscathed from Cyber Attacks

Cyberattacks are becoming more frequent than ever before. Despite increasing emphasis given to cybersecurity in banking companies, this sector is one of the most sought-after targets for cybercriminals. Robbing a bank is one of the oldest crimes in the book. However, bank robbers in the modern day are hiding behind the screen, using targeted and sophisticated cybercrime tactics and leaving IT teams struggling to keep their networks and their vaults secure. According to the Verizon Data Breach Investigations Report (DBIR) 2016, the financial sector had the largest number of security breach incidents, with 795 confirmed data losses. In fact, the U.S. Securities and Exchange Commission (SEC) has stated that cybersecurity in banking the biggest risk facing the financial system.

When it comes to cybersecurity in banking, it is always beneficial to be proactive rather than reactive. Though cyberattacks cannot be fully prevented, planning how to respond to a breach and regularly testing this plan through realistic simulations will helps organizations reduce the severity of such malpractices. In this blog, the experts of cybersecurity in banking and financial sector from Infiniti Research have put forward some of the key ways in which companies in this sector can secure themselves amidst the cyber-attack chaos.

Ways to ensure cybersecurity in banking 

Though the IT teams in banking companies have increased protection of customer data and brought down the number of credit card fraud, this does not completely establish cybersecurity in banking. The internal systems of most banks still need securing. Here are some ways in which the teams for IT and cybersecurity in banking can improve their network security to better secure the vault:Get More Info

Be proactive

Banking sector companies must respond as if their network already has been breached rather than waiting for it to happen. Adopting this mindset forces the IT teams to prioritize the most business-critical parts of the network and use network segmentation as a strategy. If done in the desired manner, network segmentation, achieved through the creation of network zones, limits the ability for a hacker to move laterally across a compromised network.  Cybersecurity in banking through network segmentation requires continual updates and configurations.

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Enterprise-wide security policy

Having a well-defined security policy is a crucial roadmap towards cybersecurity in banking. This helps the IT team maintain a truly adaptive security architecture and determine the best way for the network to operate with minimal risk. Furthermore, it must be noted that the security policy takes into consideration all the regulatory and enterprise compliance requirements and how to apply timely patches to maintain compliance.

Security policy enforcement

As important as it is to have a security policy to ensure cybersecurity in banking, it is also imperative to validate that it is being enforced across your network. Not doing so will make the network vulnerable to threats. Organizations in the banking sector must constantly monitor their network for changes to configurations and ensure that these changes are approved and compliant with policy. This is a collaborative effort across the enterprise—network operations, security operations, and the CIO. 


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