Commercial banks are “digital children”

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Compared to the digitalization of retail banking, commercial banking is still in its digital infancy and Australian commercial banks are even further behind their international peers.

Accenture has released its 2021 Commercial Banking Top Trends report, which indicates that the business divisions of Australian banks are most vulnerable to competition from fintechs and big techs due to widespread underinvestment.

Chris Jaggard, head of commercial banking practice for Accenture Australia and New Zealand, said banks need to take customer experience more seriously in their business divisions, just as they have done in their sales activities in Canada. detail.

Jaggard said, “Business customers expect better. They want more convenience, more reliable service, and faster turnaround times for loan applications.

“’Yes time’ is becoming just as important in the business lending market as it is in the mortgage and personal loan market.

“Companies like Amex and Square, which have access to customer data, make decisions in minutes. “

“The opportunity for fintechs and other disruptors is greater in commercial banking. We’re already seeing Square and PayPal getting into the less complex areas of business lending, such as unsecured small working capital financing. “

Jaggard said overseas banks have taken note of what their business customers want and are moving much faster than Australian banks to improve their services. The changes include greater automation of the back office.

According to the report, the growth in the number of banks offering banking as a service means that an increasing number of non-financial companies are including financial services in their product offerings.


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