Banks: Beyond Digitization
Will digitizing banking processes and services be enough?
Digitization: to convert (data) to digital form for use in a computer.
It will make banking easier and, in some cases, able to enhance one’s personal finances. We have already seen the results with companies like: Mint, Prosper, SoFi, Dwolla, Venmo, Mondo, and Moven. We are also seeing the potential adoption of blockchain.
Virtual bank branches are taking the place of brick and mortar locations. Chatbots are replacing human reps. Paperless banking and virtual checks complete the digital financial ecosystem.
So, why isn’t this enough?
What’s missing? Where will we see failures as time goes on? Will the consumers, who historically have struggled with finances, be better off? Why will we see many more become trapped in the debt cycle? When will fintech be able to create a #Fintechopia for all?
Can digitization succeed?
The answer lies not with technology, but a fundamental change in the relationship with consumers. Banks, creditors, and lenders changing from a profits first to a consumers first mentality. A process of collaboration coupled with cognitive automation that continually protects, maintains, and looks to improve the consumer’s finances.
Change is here and now. Consumers have already boarded and are looking for any help they can get. Banks are finally jumping on board to catch up to the disruptors. Regulators are making preparations. Now we need to start implementing a process that will truly enhance everyone’s financial well-being.