- “At times, a regulatory change force us to exit our comfort zones”
- “Banks, in case they want to maintain their feasibility, they will have to change their orientation of being mere operational executives to become their customer’s advisors or even their partners.”
- “The KingEclient’s consultancy has 17 years of experience in digital projects with banks around the world.”
From the 13th of January of 2018 the European Directive 2007/64/CE, also known as PSD1, will be substituted by the new PSD2 aiming that banks are forced to open their systems to third parties. Something that can only be translated into a countdown for the European financial sector in its race for the digital transformation.
Regulatory, structural and media changes in the banking sector have been taken shape for many years. But before the development of new concept of financial companies like the Fintech and the EU legal regulation, a doubt arises: Which will be the final result of the complete adaptation of the sector into digital environments?
As Javier Aguilar – CEO of KingEclient – exposes, the digital transformation is far from being an option, but a necessity: “Digital banking has to undertake a series of changes in both the image and the service and user experience of the user if they don’t want to lose their competitivity, like happened to firms like Kodak, Nokia, Pioneer, which back then were indisputable leaders in their market”.
“At times, a regulatory change forces us to exit our comfort zone”, Aguilar points. Moreover, the Spanish CEO admits with any doubt that “the PSD2 framework will boost the digital metamorphosis process of banks in the interest of maintaining the competitivity, which is good news for everyone of us”.
KingEclient’s CEO mentions the role of the digital giants like Google or Amazon in this period of changes in which banking is fighting to retake their competitive position: “The GAFAs (Google, Apple, Facebook and Amazon) are getting ready to enter the financial field, and there is no doubt that they have a strong attraction for current consumers. These players are much fresh, agile and attractive. “They do not drag any damaged image that the financial institutions created during the past financial crisis”, he clarifies.
A business born in 2000 with the aim of guiding big firms to realize the digital transformation of big firms, throughout new technologies, user experience and the positive return of investments on this matter. “We have participated in creation of the first internet banks, the first mobile apps, the first eWallets… This extensive path makes us feel partly participant of this evolution we are living”, Aguilar admits.
Furthermore, he highlights that “now, more than ever, a wonderful path has been opened related to this transformation of business digital models, in which banks have to face the new expectative of their clients, and mostly, the new generations”.
But the evolution of the banks will not only bring the incorporation of new channels in which to direct your clients. The transactional orientation will change into a sales orientation, presented as an impeccable trend. “Offering a bank only in order that the client can perform financial operations makes no sense anymore: there will always be someone that will do it faster and cheaper. “Banks, in case they want to maintain their feasibility, they will have to change their orientation of being mere operational executives to become their customer’s advisors or even their partners”.
A role that, with no doubts, will be affected by the new regulation. As Aguilar points, with the new legislation of the sector will provide a lot of quality information about the needs and behaviour of the client. Javier adds: “correctly used, this information can open them a wide range of possibilities about user advice, and it joints the capacity to anticipate needs and to offer financial and non-financial services”.
In the future, Javier Aguilar anticipates that the European banking will not be limited to offer financial products. “I can perfectly imagine a bank offering training services, advising to better manage their expenses and budgets, helping me to create a new business, to look for costumers and even investing in my business” and he adds “banking will be multichannel, immediate and hyper-customized.”
A vision in which KingEclient will have a very significative role. “For us, it is not about providing good practices or technologies, but to help our clients to take the best output out of them and to adapt their organizations for the change. We have to make things happen and to make digital transformation a reality to our clients in all levels.”
Written by Natalia Villarrubia