The race to become digital for banks and insurers isn’t just about using the latest technologies to streamline operations and cut costs. Smart banks and insurance companies must also ensure their workforces are empowered and properly trained to use the technologies that are already on our doorstep.
In Accenture’s BANKING TECHNOLOGY VISION 2017 report, we reveal nearly 90 percent of the banking executives say their organization must innovate at an increasingly rapid pace just to remain competitive. Yet, paradoxically, less than 50 percent of bankers say they are investing comprehensively in digital as part of their overall strategy.
Where does that leave banking customers? While customers want seamless digital transaction experiences on the platforms of their choice, 87 percent of U.S. consumers still see themselves using branches in the future, and they want human interaction when they go there. And that means banks must embrace what’s known as “phygital”—the integration of digital innovations into physical channels—the wave of the future to deliver products and services that meet customer needs.
The fact is there are similar challenges at play for both banks and insurers in the digital era.
New business models on the horizon
While banking transactions continue to migrate from physical to digital channels, new business models are developing. For instance, RBC®, BBVA and mBank want to compete as Digital Relationship Managers, creating and relying on customer- and advice-centric, integrated ecosystems to meet a broad range of everyday financial and non-financial needs. Others, like Square® and Quicken Loans®, have decided to play in the Digital Category Killers market by offering one line of business that serves a narrow set of customer needs.
Insurers are also being forced to consider new business models as technology innovations continue to unfold. For example, insurance adjusters use Tractable’s deep learning systems to simplify the triage process after a car accident. Instead of manually scanning pictures, they use machine-trained estimates for repair costs, enabling agents to accelerate a claim past triage and into repair, salvage, or appraisal. While Haven Life2 has begun offering basic insurance products online, with fast and simple underwriting.
As we discovered in our TECHNOLOGY VISION FOR INSURANCE 2017 report, a whopping 86 percent of insurers say their organization must innovate at an increasingly rapid pace just to keep a competitive edge. Partners are the future of success for insurers—customers, agents and employees are all needed to ensure the efficient execution of tasks using a variety of digital ecosystems. For example, auto insurers can work with technology, companies and vehicle manufacturers to help make autonomous cars a reality by managing and reducing the new risks they introduce. Home insurers can collaborate with security companies and home automation specialists to help create safer living spaces for their customers.
The top must-watch-and-adopt trends for banks and insurers
In both of our latest thought leadership reports on banking and insurance, we reveal the top 5 trends that are driving these industries right now. These include:
- AI is the new UI
- Ecosystem Power Plays
- Workforce Marketplace
- Design for Humans
- The Uncharted
The concepts and processes outlined in each area are essential to consider implementing sooner rather than later. Learning to understand the technologies that are a best fit to a company’s organization is as essential as the workforce it retains to leverage those technologies in the new tech-human era. In short, banks and insurers have unprecedented opportunities to capitalize on the technology-human equation to not only drive innovation and change, but to lead the charge.
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