Unthink Banking

Thought leadership

Finacle from Infosys helps banks stay ahead of changing customer demands, emerging competition, and mounting global regulations, by partnering in product, service, and process innovation.

Banking product, service and process innovations 

Product innovation

Product innovation results in simpler products. Undercurrent opinion has it that 'too much innovation' leads to creation of complex, risk-laden products that consequently pave way for financial crisis. But product innovation helps banks comply with regulations and assure both regulators and consumers about the security of their offerings. Product-specificity is no longer adequate as customer expectations are always in a state of flux – they expect products that are tailored from their point-of-view. Hence, product innovation must be played by the new rules, which state that they must be prepared for change.

We believe that product innovation follows a 'power cycle' that enables banks with varying market power to achieve different goals. Banks must adopt product innovation to drive growth, achieve leadership and extend dominance. Consequently, individual innovation strategies must target different priorities such as creating relevant, value-added, extensible products, incorporating greater transparency, and customer feedback within the offerings or making products more inclusive and replicable. The success of these initiatives depends on the agility and efficiency with which they can be implemented.

Process innovation

Process innovation has been a transformational force for years, and continues to hold sway over banking. Processes are banks’ proprietary advantage and their biggest drivers of differentiation. The traditional model of process innovation focused on simplification, standardization, and rationalization; the new one has made a subtle shift towards maximizing value for customers.

At Infosys, we believe that cost, service, time, and transparency rank as the topmost priorities of customers. Therefore, process innovation must exert a positive impact. The goal must be to create cost-advantage passed on as lower tariffs and optimized price structures; service-advantage enabling both self and personalized service as per need; time-advantage guaranteeing service fulfillment anytime, anywhere; and transparency-advantage bringing predictability and credibility to the relationship.

Service innovation

In tomorrow’s market, service, and not sales pitch, will drive revenue growth. Banks must leverage their 360 degree view of each customer to create a 'segment-of-one marketing' and propose customized service offerings. In line with the preference of present-generation customers, existing services must be rendered in self-service mode. Banks must remember that as they take this new approach to service innovation in the future, customer care, and not complaint resolution, will drive customer retention.

Clearly, the rules are changing, and so must the way of playing the game. At Finacle, we believe that banks need a creative and adaptable game-plan to enter tomorrow from a position of strength. Financial institutions must be willing to visit basics and rewrite the script where customer service is concerned. It is time for banks to bring new ideas and creativity to the table.

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