In a world of roboadvisors, mobile payment apps, and automated processes, do people still matter in banking?
I believe the answer is a resounding "Yes!"
In fact, as agile, online "fintechs" continue to challenge retail banks, I see people as moreof an advantage than ever. After all, those online-only disruptors can't match banks for the level of personalized expertise and advice they can offer on a wide range of products and services.
But in order to make their people a true differentiator - in the branch and beyond - banks need to use them correctly. That means beingmore digitized, not less. Moreover, banks need to transformfast, given the pace of industry disruption.
The key is finding that sweet spot where digital and humans meet, and everyone - customersandemployees - benefits.
This is supported by a new Cisco study, "A Roadmap to Digital Value in Retail Banking." It shows how digital technologies in retail banking are driving$405 billion in Digital Value at Stake between 2015 and 2017.
In 2015, however, financial services organizations captured only 29 percent of that value. How can banks realize their share of that value, before their competitors - new and old - grab it first?
Our study focused on a number of key digital use cases that drive more than 90 percent of the total value opportunity. By assessing and implementing the use cases that best align with their desired business outcomes - after first ensuring a solid foundation of cybersecurity - each bank can begin to follow its own path to new value.
What are the most important use cases? For retail banks, they are sales and services transformation, next-generation workers, and video advice - all of which depend on, you guessed it,people.
For people to drive innovation and better customer interactions, however, they need to beempowered. That requires workforce transformation, supported by real-time data insights, collaboration tools, video, and other technologies. In addition, automated processes must free bank employees from the kinds of manual, time-consuming tasks that sap their energy and creativity.
Let's look at a few banks that excel in empowering their people:
Automation? I'm all in favor of it. Digitization? It's transforming the world in amazing ways.
But at the end of the day, the real question is "how are they benefiting people?" Smart banks will ensure that their customersandemployees are getting the most out of new technologies.
That will enable them to thrive in complex, challenging environments and drive their own disruption - as their people innovate and interact in exciting new ways.
By integrating the digital and physical worlds, I see banks creating a value prop that the fintechs can't match. The key is placing people at the center.