Big Tech In Banking

How will banks survive with third-party customer interactions?Customized retail products designed for specific customer needs are what big techs are up to for a seamless user experience. These financial service concepts circle around users so that they may not need to migrate to other platforms or brick-and-mortar services to avail of such needs. Fintech firms act as third parties for moves that Amazon, Google, Uber, Apple, Facebook, Alibaba, and Grab are envisioning. Retail banks, for the most part, are playing reactive by digitizing their processes instead of creating new instruments for a techie future.Indeed, the financial landscape has become highly competitive for the banking industry given that other banks, aside from digitizing, are merging, regulations across regions are evolving, and customer expectations are rising. A first-hand experience brought about by the pandemic demanded that human lifestyles in the new normal continue to be lived via push-button, multi-channel digital approaches.Can banks survive the battle to keep customer base loyalty right at their parking lots?PlatformThere is no way banks can compete side by side with big techs until they know what makes them successful. Since they are all internet-based, big techs make use of platforms. A platform is a digital business model that produces value by bringing various consumers and producers together and mediating the exchange of values between the participants in a collaboratory ecosystem. The network effect produced by the platform through its existing customers attracts other consumers and developers to use the platform.TransformThe banks have yet to transform their traditional infrastructure to be able to change the way they conduct services like lending, depositing, and withdrawing in direct contact with their clients. As that relationship may be the banks’ strong point, they may lose that loyalty if they fail to innovate and transform into a digital business model.ReformTo stay competitive,…