about us | newsletter | contact | archive | members area
Gheorghe Ciubotaru, Electroalfa
We are witnessing a continuous process of adaptation to the mechanisms in the market»
  Features:      COUNTRY FOCUS   |   SECTOR ANALYSIS   |

Digital Finance - driving force for the banking industry

Digitalization is radically transforming the banking industry, enabling new products, services and business models. This transformation will take time to complete, forcing banks to act now and embrace new technologies for a sustainable business strategy.

2018-03-29 13:13:21 - From the Print Edition

As more and more people engage with the new technologies, it is changing nearly every business model. Customer onboarding and engagement, underwriting and risk management, billing and claims - all these areas are being changed by the digital innovations.

The new wave comes with the power of innovation; the digital transformation of the financial industries is one of the key challenges ahead - and certainly a big opportunity for the industries to renew themselves.

As 2018 unfolds, financial services firms must address the twin challenge of delivering digital transformation wins for their organizations while ensuring compelling digital experiences for their customers and employees.

Piraeus Bank: We explore the video interaction with the customer for selling products and services

Digital Finance is and will continue to be a major driving force for the Banking Industry, according to Cosmin Rogojanu, Head of Project Management at Piraeus Bank Romania.

"As we see around us so many people using their smartphones all day long, this is the place for any product/service offering, marketing, selling and servicing," he told The Diplomat-Bucharest. "This is not just because it is the way life is today, but because so much time can be saved for both the Customer and the Bank. Digital finance will grow until it will replace a major part of what we understand today as Banking. This growth will also potentially disrupt the current hierarchies, if major differences of approach emerge among banks. One more visionary point regarding digital life: enhanced reality may play an interesting role in explaining to customers the use of products and services and potential future impact in their financial plans."

According to Rogojanu, the cost of delivering digital financial services is a major challenge: "Not only because this means that important amounts of money and resources need to be used in order to go digital, but also because banks are hugely regulated and therefore the resistance met by a bank to go digital is much more than for a fintech, who may play at the border (much like ride-sharing apps play at the border of transportation services). The second challenge is finding the right niche, the specific pool of customers to be reached. Countries, regions, cities are all different in assimilating the digital services. The third challenge is obtaining and keeping the right mix of resources, open mindedness, experts in their areas, visionary and creative, to support the race toward digital."

Rogojanu sees a good potential in digital payments and financial services and said Piraeus Bank invested a lot of effort into bringing as many digital services as possible on the market: "We started this effort two years ago and we expect to see continuous growth in this direction. We explore video interaction with the customer for selling products and services, we put to work robots for routine activities and even to talk with the clients, and we plan to reach the clients as much as possible on their smartphones."
In his opinion, with the current trend of overregulation, the future of digital is with those who play at the edge. "The standard Banks will survive in specific pockets or only the biggest will have the resources to keep going on," Rogojanu concluded.

* Part of the Digital Finance feature from the print edition



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  2613 Views
Daily Info
Oil Terminal cuts wages by 25 per cent for ten days

Oil Terminal suspends full wage payment for ten days in order to reduce expenses. Almost a thousand employees will be affected by the measure decided after the company conclud...

Dacia Mioveni plant in Romania reaches 50 years of activity

The Dacia car plant in Mioveni, Romania, celebrated 50 years since producing the first Dacia car on Monday, August 20.

Quarterly distribution of dividends - benefits vs costs

In July 2018, Romania joined the European Union countries where companies can distribute dividends to shareholders on a quarterly basis. This change in the Company Law is extr...

PayU expands to Israel through ZOOZ

PayU, the leading financial services provider in global growth markets, announced the acquisition of ZOOZ, the payment technology platform that operates in Israel. The transac...

Romelectro to modernize the Smardan power station following 23 million Euro project

The association between Romelectro SA and Electromontaj SA, as a general contractor, recently won the tender organized by CNTEE Transelectrica SA for the modernization of the ...

 
 
   
advertising

advertising

advertising

advertising

More on Features
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 ...

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...

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...

Romanian office market ripening, in both leasing and acquisition

From the investment standpoint, lower rates of return and increased liquidity lure the investors, Andreea Paun, Managing Partner, Griffes said in an interview for The Diplo...

ISS: External FM market volume will grow as more Western European FM companies open subsidiaries in Romania

In the last few years as well as in 2017, the Romanian FM market has been in the process of maturing, focusing more and more on quality, efficiency and added value, demandi...

Global efforts to develop low-carbon, energy-efficient solutions

Interview with Robert Tudorache, Secretary of State, Ministry of Energy

Fresh Delivery (P)

Up to speed with the courier sector in an interview with Gian Sharp, CEO at Urgent Cargus