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Blog 2018

Interview with Emiliano Porciani, Digital Manager, Banco Galicia

Where do you see the greatest opportunities for banks in the digital space?

The two main areas where Digital becomes crucial in any bank’s strategy are Customer Experience and Efficiency. The Digital transformation includes several areas in which Banco Galicia is operating with different working progress.

 

    1. Business approach by redirecting Marketing spend to Digital and scaling our Business digital capabilities such as:
        1. Digital Channels development, using the cutting edge technology in mobile banking, online banking, Chat bots, and Real Time Decision engines, among others.
        1. Digital Marketing Deployment, reaching up to 90% of some products sold in the digital platforms.
        1. Digital Innovation Lab, designing product prototypes, co-working side by side with the IT department in delivering an IT blueprint with the capabilities to support next generation
        1. Digital Banking and sponsoring Digital culture in the Bank.

 

    1. Reshaping our most significant customer journeys in an E2E digital basis.

 

    1. Building analytic capabilities by introducing new technology such as big Data and new campaign manager, as well as building a Big Data Lab in order to explore new data models to enhance Customer Experience and improve efficiency.

 

    1. Modernizing our technology infrastructure, and exploring open platforms to others, preparing ourselves to new business models.

 

    1. Challenging the traditional operating models and redesigning organizations to achieve agility and innovation

 

What is the biggest obstacle banks have to digital transformation?

In my point of view, the main barriers traditional organization face in the Digital Age, are culture, talent and the battle for innovating vs. running the day-to-day business.  Legacy IT architecture can also be seen as an obstacle if the company under-invested in the past.

In Banking another main issue has to be taken into account. The regulations often move slower than the technology evolution. This means that a non-regulated player runs with a mayor advantage in this area.

What do banks need to do to effectively compete with global banks and fintechs?

Regulators are forcing Banks to open their platforms to third parties, cheap and scalable technology enables the appearance of new players, GAFA threatening the financial sector with large customer base to be served and disrupting with totally different business models, and customers changing their behaviors and demands. In this scenario, Banks need to drastically reshape their strategies for the next years. Customer approach, digitalization of E2E customer journeys and adopting advanced analytics are three basic things that need to be considered serioulsy. Thus, organizations will have to rethink the IT blueprint in a strategic basis, embrace agile transformation at scale and seek for talented employees in order to decentralize operation and decision making.

How do you and Banco Galicia see Fintechs? Friend, foe or partner?

Fintechs and GAFA appear in different layers in the value chain. There is great value in partnering with those who accelerate Bank’s innovation and service delivery, as well as those who deliver 2ndlayer services, such as security, regtechs, machine learning solutions, blockchain, etc. We both have complimentary assets to share in one of our primary objective that is financial inclusion.

Banks have the customer base, the distribution channels, the regulatory knowledge, a huge amount of data, and a low risk business model due to our regulating compliance.

But this regulations and the fact that banks are serving many segments as well as delivering a wide range of products in different channels, result in more complex business to be run.

On the other hand, fintechs move faster, they are more customer-centric since they focus in single vertical solutions and mainly operate in one channel (mobile or online), and typically know how to improve products faster than traditional organizations. Risk is an issue since they are in the opposite side of the banks in relation to regulating compliance.

In this line, there are positive collaboration or partnering scenarios but also we know that these companies can erode our revenue. In addition to this, disruptors can change the rules very quickly.

Therefore, Fintechs and Banks are reshaping the Banking sector rules, sometimes on a collaborating basis, and on the other hand, competing for some part or the whole customer lifecycle.