about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  Features:      COUNTRY FOCUS   |   SECTOR ANALYSIS   |

Tuchila, Romanian Banking Association: Digitalization in the financial banking services could be a game changer

Competition is increasing in the banking and financial services, there are new entrants on the market and this is driven by the customers' requirements in the digital era, according to Rodica Tuchila, director of ARB (Romanian Banking Association)

2017-01-17 21:14:44 - From the Print Edition

In her opinion, the financial banking industry will structurally change, moving from traditional banking to digital banking, to a customer-centric integrated multichannel approach to address the customers' needs.
"Adopting digital technologies will reduce the costs with the banks' networks and the operational costs, will support banks in better satisfying customers' expectations and at the same time creating increasing demand for digital banking solutions," Tuchila tells The Diplomat – Bucharest.
Digitalization in the financial banking services could be a game changer, enhancing the accessibility of these services and significantly increasing the bank-using population in less developed areas, according to the same source, who states that increasing the electronic services usage and financial inclusion could be effective in reducing the shadow economy.
"Digital solutions and the collaboration between banks and new entrants on the market could be key enablers for improving the availability and affordability of financial banking services, and this could make Romania more attractive for foreign investors," says Tuchila.
According to a study performed by the strategic consultancy company Roland Berger, today′s Romanian consumers still have a very limited range of services that can be acquired remotely, via an end-to-end digital process, compared with other European countries.
On the other side, there are about three million digital natives in Romania and the number grows every day, so the Romanian banking system faces a digital imperative, according to ARB's director.
"Therefore at the level of the Romanian banking community, with the Roland Berger company support, the Digital Agenda project was initiated," says Tuchila.
"The scope of this project is to adapt the Romanian regulatory framework to the most recent technological and competitive developments, so that they can better satisfy consumer needs and remain competitive in an increasingly challenging environment."
She adds that a list was drafted of laws and regulations that need to be updated to permit a full digital transformation, and there are discussions in progress with the Romanian authorities to adapt the regulatory framework in this direction.
There are some strategic technology trends to be considered for the coming years - according to Gartner - to have an important impact including a high potential for disruption to the financial banking services industry and for its customers, as Tuchila says.
"One of them is indeed the ′Internet of Things′ - the interconnection of embedded computing devices within the existing Internet infrastructure, offering advanced connectivity of smart devices, systems, and services," she adds.
"According to Gartner, there will be nearly 26 billion devices on the ‘Internet of Things' by 2020. We could speak also about the ‘Internet of Value' – a world where money is exchanged at the speed in which information moves today. Transactions would occur in real-time and across global networks, solving the problem of international payments systems. The most important trend is Computing Everywhere Anytime – due to the growth of mobile devices use, Gartner predicts an increased emphasis on serving the needs of the mobile user in diverse contexts and environments, as opposed to focusing on devices alone."
In her opinion, one of the biggest challenges for the financial industry would be to include mobile banking as a regular delivery channel, with integrated social media technologies.
Banks defines their own strategies to rapidly accommodate their customers' requirements and to change their business models according to these trends, as ARB's director states.
"Banks face the challenge of integrating business intelligence platforms in their digital strategy. Technologies and methodologies have to be used to enable the quick adoption of better decisions, to identify and follow trends and behaviours by embracing the overall customer life cycle and its changes, to improve experiences and enable better customer service and experiences."
According to Rodica Tuchila, banks should better understand digital consumer behaviour, to explore what they really want from banks and how satisfied they are with their current services.
"Through a better understanding of consumers and dynamic, interactive digital technology, banks can transform the customer experience and drive growth in today's highly competitive retail banking industry," she says.
Banks today must face multiple challenges: the changing regulatory frameworks and risk cultures, the digital and data revolution, the shift in customers' behaviours in terms of speed, commodity, ease of use, and the competition with new entrants on the financial services market such as FinTech companies, according to the same source.
ARB's director also states that technological innovations bring new opportunities not only in the relationship with the customer, but along the entire banking value chain. Through digitization the core banking processes can be carried out faster, more accurately, and with lower costs.
"In this environment, I think the banks should prove more agility in their market actions, more flexibility and availability to change their organizational habits to look more to customers' expectations and to facilitate digital innovation, bringing a large range of benefits to all parties," she concludes. ■



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  30674 Views
Daily Info
OTP Bank Romania posts 15 million Euro profit at the end of Q3 2018

OTP Bank Romania recorded a consolidated after-tax profit of 15.09 million Euro, in the first nine months of the year, almost twice as much as in the base period.

Black Sea Oil & Gas and Transgaz sign 15-year contract for the MGD Project gas production transmission into the NTS

Transgaz and Black Sea Oil & Gas signed the gas transmission contract for the transport of the Midia Gas Development Project (MGD Project) production into the National Transmi...

Almost 90 per cent of industrial and logistics stock is condensed in cities with highway access, says C&W Echinox

Romania's industrial and logistics market is currently benefitting from its best period in history, both in terms of supply and demand, with development being condensed in a n...

Meet the finalists and the winners of the first Automotive Awards Gala by The Diplomat-Bucharest!

Automotive Today powered by The Diplomat-Bucharest organizes Automotive Forum & Awards for Excellence Gala 2018 on 13 November at JW Marriott Hotel in Bucharest - Constanta Ba...

The second edition of Hacking Health awards three digital innovation projects for the Romanian health system

Hacking Health 2.0, the most important health hackathon in Central and Eastern Europe, took place this weekend in Bucharest at the initiative of Johnson & Johnson Romania, imp...

 
 
   
advertising

advertising

advertising

advertising

advertising

advertising

More on Features
Blockchain how it's made and what can we do with it

In the context of the "fourth industrial revolution" that everyone is talking about these days, The Diplomat - Bucharest analyses how an emerging technology like blockchain...

Cryptocurrency exchanges. The new outsourcing El Dorado?

Customer experience has become the new competitive battleground for crypto exchanges. Cryptocurrency exchanges seeking to maintain or gain an advantage in this highly comp...

US calls for coherent, long-term strategy

As USA celebrates 4th of July, its eyes are wide open on the latest developments in Romania's ongoing struggle for the rule of law. Still, the country is one of the fastest...

French investments at a glance: Interest still high

France, Romania's fourth largest foreign direct investor, has been around since the early 1990s, with flagship names the likes of Societe Generale or Groupe Renault taking ...

Romanian energy industry: Challenges to Overcome

With a national strategy draft still to be approved, Romania faces many challenges, as the energy market is striving to find a way to attract major investments that are cri...

ANCOM: We look at the postal services market in the light of e-commerce developments

Romania's courier business is pretty dynamic these days and tends to become more and more high-tech as players are trying to find innovative solutions to keep up with users...

High potential for sustainable growth on Romanian FM market

Facility Management is still a developing market in Romania, with a lot of challenges to overcome. The Romanian Facility Management Association (ROFMA) analyses the relevan...