For centuries, banks have been the dominant hub for many financial exchanges and providing such services. However, all that has changed when the internet and smartphones became part of our daily lives. As a result of this, many industries are disrupted by these changes, banks are no exception. With the combination of smartphones, internet connectivity and the rise of fintechs and techfins, banks now are struggling to compete in order to retain customers, let alone win over some. This is due to banks providing similar services which then results in the market being diluted and customers are now burdened with an abundance of choices, in addition to the change in customer behaviour. With techfin companies gaining the upper hand over the current banking institutions because of their technological innovations and large customer base, it is essential for banks to reevaluate their branding and priorities in order to be relevant in the fast-changing world. Naturally, the area of focus would be to improve the customer experience in banks.

As a result of the growing influence of techfins, banks will need to collaborate with fintechs to realize the potential of digital banking. According to a Mckinsey study, customers in the US, Italy, Spain, and France are still in favor of branch banking to resolve at least some of their banking needs despite the growth of alternative digital mediums. Many other tasks in banking still require the “human aspect”. As a result, the ideal branch management would be to allow digital self-service kiosks available for customers to automate day-to-day tasks while bank officers handle higher-stake matters and customer service. This will reduce operating costs while increasing digital literacy and efficiency amongst bank branches and their customers.

The fundamental concept of a “smart branch” is to provide banking services to customers around-the-clock under the digital ecosystem. In addition, the smart branch should also possess an omnichannel approach to ensure consistency of the customer experience throughout all devices. One such case was an endeavour between Hitachi and their partners within the banking industry in China. In an effort to enhance the customer experience at banks, Hitachi has formulated smart branch solutions through mutual participation with its customers. The implementation of hardware and software IT solutions resulted in producing highly efficient self-service kiosks where some were portable for mobility purposes. In a society where customers are familiar with using a smartphone to perform everyday tasks, it should not be a surprise that banking institutions will have to keep up with customer demands. Consequently, banks need to invest and collaborate with technology companies to provide the best possible solutions to increase revenue and compete in the market.

At Emerico, we collaborate with our clients to address these issues by offering state-of-the-art technological hardware and proprietary software solutions to stay relevant and to curate the ultimate customer experience through the adoption of a seamless digital ecosystem. Some of our products include the Emerico Smart VTM with iPad which is essentially a compact version of our flagship product, the Emerico Cockpit Smart VTM and the Emerico Mobility with iPad for those who are constantly on-the-go.

Our products are outfitted with patented technology to equip banking institutions in adopting the smart branch approach. This way, consumers will be able to perform everyday banking tasks. At Emerico, we ensure that banks harness the digital ecosystem but at the same time also provide consistent and seamless customer experience. Furthermore, our products are highly modular in design with the purpose of equipping various industries to embrace the digital space.

Banks will need to prepare for the inevitable. Techfin giants are growing their influence over customers and for the moment, banks are ill-equipped to tackle such giants. Banks will need to foster a collaboration with fintechs in order to provide improved customer experience and stay relevant in the industry. The concept of digitizing the bank does not mean fully digitizing the bank from bottom to up, but rather create an ecosystem where customers are given a more seamless customer experience through digital mediums.

Traditional banks whose brands are renowned nationwide or worldwide for their banking services will have to change, and that is not necessarily a bad thing. At times of disruptions are also times of opportunity and growth. Optimistically, traditional banks will embrace innovation and continue to progress upwards. Through our hardware and software solutions, we are here to ensure that our clients not only have a fighting chance to stay in the game but also outshine their competitions in every aspect possible.