The rise of FinTechs continues to revitalize the financial services customer journey; however, many startups have realized they will struggle to succeed alone. With complementary strengths, FinTechs are increasingly looking to symbiotic collaboration with the traditional financial services firms they once sought to overthrow, according to the World FinTech Report 2018 from Capgemini and LinkedIn, in collaboration with Efma. The report examines how FinTechs are transforming the financial services customer journey through better customer centricity and use of emerging technologies; the potential for symbiotic relationships between FinTechs and traditional financial institutions; and the impending role of BigTechs in financial services.
FinTechs drive revitalization of the financial services customer journey
FinTechs, innovating with emerging technologies, are revitalizing the customer journey through financial services. Competition and rising customer expectations are driving demands for more convenience and personalization. FinTech firms are leveraging both customer data to drive personalized offerings, and providing fast, 24/7 online services that can be accessed from any device.
However, financial services customers have greater trust in the brands of traditional firms versus those of FinTechs, according to the World FinTech Report 2018. For future success, financial services firms must look to continue aligning with customer goals, maintaining trust, and delivering digital, agile, and efficient processes.
Win-win collaboration opportunity
Unburdened by legacy systems and old-school culture, FinTechs have leveraged new technologies to rapidly respond to customer demands. In fact, the World FinTech Report 2018 reports found that more than 90 percent of FinTech firms said agility and providing an enhanced customer experience are key to competitive advantages, and more than 76 percent cited their ability to develop new products and improve existing products and services as critical to success. The challenge is to scale-up and create financially-viable business models. Although FinTechs have raised nearly US$110 billion since 2009, the report found that most are likely to fail if they do not build an effective partnership ecosystem.
At the same time, traditional financial institutions are adopting many FinTech customer service enhancements, while retaining strengths including risk management, infrastructure, regulatory expertise, customer trust, access to capital, and more. Both traditional and FinTech firms stand to gain from a symbiotic, collaborative relationship.
Finding the right partner is essential to successful collaboration
This year’s report found that collaboration will be essential to foster long-term success for both FinTechs and traditional financial firms. A successful collaboration is contingent on finding the best partner and engagement model. To develop strong partnerships, firms will have to overcome barriers to collaboration.
According to the World FinTech Report 2018, more than 70 percent of FinTech executives said their top challenges to collaborating with traditional financial firms was their lack of agility, while traditional firms perceive negative impacts on customer trust, brand, and changing the internal culture as their top challenges.
Looking ahead: accelerating collaboration and preparing for the future
The future of financial services is in the hands of both the FinTech and traditional firms that can complement each other’s strengths to meet customer needs and redefine the journey. To help financial services firms accelerate collaboration and foster symbiotic relationships, Capgemini launched a ScaleUp Certification tool. This tool creates a model for collaboration and mutual verification that encourages partnership between traditional firms and FinTechs. While the great unknown is the disruption that will come from BigTechs—the large, multinational technology firms with a huge retail customer base, what is clear is that now is the time for FinTechs and traditional firms to find the right collaboration partner and redefine the path to success.
About the World FinTech Report 2018
Capgemini and LinkedIn, in collaboration with Efma, developed the World FinTech Report 2018 based on a global survey encompassing responses from traditional financial services firms and FinTech firms including
banking and lending, payments and transfers, investment management, and insurance. Questions sought to yield perspectives from both FinTech and traditional financial services firms—exploring various aspects of the customer journey, and key success factors for customer journey enhancement. The survey sheds light on the evolving relationship between incumbents and new-age players with a focus on the FinTech viewpoint, and an analysis that may help both entities achieve business success.
For more information, explore the report website at www.fintechworldreport.com.
Malaysia Airports and OpenText Create Digital Transformation Framework
Posted in Commentary with tags OpenText on February 27, 2018 by itnerdOpenText a leader in Enterprise Information Management (EIM), today announced that Malaysia Airports will be working with OpenText to develop intelligent automation, predictive analytics, and expanded digital services for passengers at the Kuala Lumpur International Airport (KLIA), including its second terminal klia2. This project will be executed in phases, through a big data analytics and digital platform that will contribute to the Total Airport Experience (TAE) strategic pillar outlined in Malaysia Airports’ five-year business plan.
The development of this unified digital platform will enable Malaysia Airports to differentiate engagement with passengers and other customers, drive operational efficiency, enable passenger productivity and experience, and drive new and existing revenue streams. Data fed into the digital platform from various existing systems will be analyzed with machine learning and artificial intelligence, providing insights for better decision making to enhance passenger experience as well as business and operational excellence.
As a technology partner, OpenText will deliver digital and analytics capabilities through an integrated software suite, including content and big data management, service quality management, customer experience management and asset management.
“As we embarked on an analytics-led digital transformation, we were looking for a technology partner that offered a sustainable, integrated solution. Through the Unified Digital Platform (UDP), we are looking to deliver effective engagement and achieve all-round operational efficiency that we can extend to our passengers,” said Azli Mohamed, Chief Strategy Officer at Malaysia Airports.
The project will kick-start with a mobile application that will help passengers plan their journey. Through the application, passengers can receive real-time notifications on flight status, congestion levels, expected journey times and travel options, as well as airport services such as self-check-in and self-bag drop facilities. With later releases of the app, passengers will be able to access the ‘click and collect’ service which allows them to purchase products online and have them delivered to their boarding gate.
This digital transformation will also benefit Malaysia Airports’ commercial partners such as airlines and retailers, as well as other stakeholders at the airport such as the immigration department. Airlines will be able to verify passengers’ authenticity before they enter a secured area by digitally matching the airlines’ check-in data with passengers’ documents. Airlines will also be notified in real-time of passengers’ whereabouts after check-in, helping to improve the overall efficiency of airport and airline operations.
This project facilitates the collaborative relationship between Malaysia Airports and the Immigration Department of Malaysia, helping to ensure queue management efficiency and incident management through digital escalation processes, as well as allocating resources based on the predictive analytics of passenger flow and volume, thus aiding in seamless immigration and emigration clearance. New security scanning facilities and boarding gate readers will also be employed to ensure seamless end-to-end passenger experience.
OpenText and Malaysia Airports will also collaborate on a Digital Airport Centre of Excellence at Malaysia Airports’ premises. The Centre of Excellence will focus on driving change, with a core emphasis on identifying opportunities for transformation, assessing the impact of new initiatives and in identifying future initiatives through passenger feedback.
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