Technology is the key driver to keep the world moving
During the Experian Innovation Week, the true drivers of the change in the field of Open Banking, innovations and innovative customer management have presented and demonstrated how technology can be the key driver to keep the world moving.
Open Banking clearly will be the game changer on the financial institution around the globe including the Balkans and the CEE region. Open banking is giving opportunity for better evaluating risks but also tailormade product proposition for customers lifestyle.
Customers needs and expectations are changed
Customers needs and expectations are changed after the pandemic. This have accelerated the digital transformation process. Accordingly to the latest EXPERIAN’S 2021 BUSINESS AND CONSUMER REPORT, 62% of businesses in EMEA have seen an increase or a significant increase in credit applications from new customers over the past 12 months. Organizations are now trying to create a digital customer journey as smooth, easy and transparent as possible.
Thanks to transactional data and categorization is now possible to understand customer spending behaviour and create some KPIs and use-cases available for onboarding, marketing and even collections.
A new disruptive trend in the banking services
The use of algorithms has taken the mobile banking to an unprecedented level, making Ivo Grigorov – CEO, Credefi, one of the most innovative fintech in Bulgaria, to estimate to 300 billion the number of alternative online transactions (outside traditional banking) worldwide last year, with a forecast of doubling until 2026.
Experian’s Forrester Commissioned Report: enjoy the 3D virtual tour and download itView
Regulations are setting the agenda for the next future
Regulations are trying to effectively respond to the challenges launched by the pandemic. Focusing on advanced analytics, Open Banking and ESG Environmental and Social Governance, they are changing the risk management an defining the agenda for the next years. In the next future the ESG will be more and more important and will change access to credit. Businesses will be assessed on the basis of sustainability. If these could be relatively easy to be assessed for large companies, it is very difficult for SMEs.
Innovation can be the key to help financial institutions to be compliant and boost the recovery
The increased availability of data will change – in fact- the risk assessment modelling in the next future.
Three years ago there were very few financial institutions able to use their transactional data. Three years ago it was really hard to manage such a huge volume of data. Data without analytics and categorization are meaningless, but now, thanks to advanced analytics, Artificial Intellingence and Machine Learning it is easy to develop new analytics models in big data and open sources environment.
Richard Topham – Director of Strategic Sales EMEA, Experian, says that the smart use of data allows a great customer experience even when it comes to collection, an activity typically not very friendly with banking customers in distress.
View the interactive journey to discover the research findings and download to the full findings.
If you are interested in reducing the time to yes in your onboarding journey, you can access our dedicated report here where we discuss key tips to reduce customer friction.