One of the most important aspects of financial services is finding the right partner ecosystem which helps them to become more adaptive and transform at a faster rate as per Bahaa Abdul Hussein. For this very reason, leaders of banking must trust the ecosystem of partners they work with.

Shifting from traditional architectures to cloud-based platforms is the need of an hour. Therefore, various banks and credit unions like the idea of joining hands with an ecosystem of partners which is crucial to innovate quickly.

Key Steps To be Considered:

1. Motivate the Open Siloed Institutions

The communication gap between the regional and community players should be bridged to become a truly digital financial institution. The issue is most banks function as different business units. “Bundle back” the different units into one and “the data” is what is required to motivate this change.

One of the most effective ways to bring about the above change is to communicate within business units through APIs. This enables sharing of data more freely and this is important for creating a good customer experience. By breaking down internal silos the employees can collaborate effectively and innovate faster and better.

2. Trust matters the most

Especially after the pandemic, there are many financial issues and products that customers find difficult to understand. To eradicate these problems, smaller banks and credit unions must connect with bigger banks. This is a win-win for all types of banks and customers as well.

3. Conscious Banking

Conscious Banking means bundling digital services with human advice like a service that plays an important role for the financial institutions to become trusted advisors to the customer. The combo of human touch (advice or services) with technology will help smaller banks remain competitive and make them a go-to option.

Besides offering products, the banking-as-a-platform model to serve customers is the path that financial institutions must take. Effective use of data that the banks and credit unions have must be used beyond just offering an app that allows basic facilities like transactions. Customers must have solutions and services that need for their everyday financial life.

The customers always understand and reward the value that is provided to them on an ongoing basis by the banks and credit unions. Therefore, the value is never in a particular product or service but rather in the effective services they get.

The aforementioned steps are a few ways in how banks and credit unions can be successful in the transformative path that lay ahead. Thank you for your interest in Bahaa Abdul Hussein blogs. For more stories, please stay tuned to www.bahaaabdulhussein.com