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70% of APAC banks fail in digital transformation due to costly and time-consuming internal efforts
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Thai banks are reaching an advanced stage of fintech adoption, but a lack of integration creates siled systems.
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Engagement Banking technology plays a crucial role in creating a unique platform in the digital banking era
BANGKOK, THAILAND – Media OutReach – November 28, 2023 – Thai banks and financial institutions leverage mature technology and integrate modern features. However, experts at the recent ENGAGE ASIA 2023 highlighted that the challenge comes from the lack of unification across different touchpoints, resulting in fragmented customer engagement.
The majority of systems within banks operate in silos and do not communicate with each other, insiders said. The main challenge lies in integrating these siled systems and connecting them to systems of record and the essential fintech ecosystem. Only then will banks be fully successful in their digitalization efforts.
“Banks today operate very inefficiently, but they remain very profitable. We frequently see banks opting for piecemeal solutions on top of their existing technology to introduce new financial services. In contrast, incremental modernization involves banks focusing on improving the most critical customer journeys to modernize their underlying processes and prioritizing integration over systems simplification. This strategic approach achieves true end-to-end customer engagement and reduces service costs,” said
Jouk Pleiter, founder and CEO of Backbase. “The digital revolution in Asian banking is gaining momentum, and banks find themselves at a crossroads, navigating a dichotomy of traditional and modern practices and strategies that will yield different outcomes when it comes to digital transformation.
“When the Bank of Thailand issues digital banking licenses in 2024, it will increase competition in the banking sector. Banking platforms that can help banks accelerate unique and differentiated customer-centric engagement will play a central role in this evolving landscape,” said
Lawyer.
“A single industrialized platform that reuses data, leverages repeatable processes, and integrates AI and machine learning can reduce manual processing and friction in customer engagement. It is fundamental that banks move from traditional system-centric banking to customer-centric engagement banking,” added
Riddhi Dutta, Regional Vice President, Asia at Backbase.
According to
recent search from Backbase and IDCThe majority of large banks in APAC decided to build their banking platforms in-house, resulting in 70% of digital transformations failing due to costly and time-consuming efforts.
Technology from Backbase, the world leader in
Escrow banking platform, is designed to unify siled systems into a single omnichannel banking platform to quickly modernize banking. Its “adopt and build” flexibility is a model favored by banks to accelerate customer-centric digital transformation. This approach accelerates the implementation and launch of new services and gives each bank the freedom to customize the UI and UX to meet the unique needs of their customers.
Backbase’s solution integrates artificial intelligence and machine learning to improve analytics and the overall experience. A notable case concerns a bank with 8.2 million individual customers, 87% of whom are new. This concrete implementation has resulted in a 40% increase in transactions, with retail customers now contributing over 30% to the company’s revenue, while achieving a 30% reduction in operating costs compared to branches traditional.
https://www.backbase.com
https://www.linkedin.com/company/backbase/
Hashtag: #Backbase #digitalbanking #engagementbanking #retailbanking #omnichannelbanking
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