No industry is experiencing more change than retail banking today. That change is being driven chiefly through the twin pressures of regulatory reform and consumer expectations. With significant regulatory deadlines looming, banks’ software teams are facing a critical crunch to get their systems in order fast. At the same time these teams face intense pressure from their C-suite and boards to meet the demands of their customers, including the 68% of adult Americans who report being frustrated with a digital banking experience.

As an executive at a leading challenger bank recently shared with me, the key test for retail bankers today is how to, in effect, deliver millions of branches through a single mobile app. Modern mobile banking apps must offer all the traditional services of a physical bank location—and unlike physical branch offices, those digital branches never close.

According to a 2017 Bain/Research Now survey, less than half of respondents in the United Kingdom stated that their bank’s website let them do everything they wanted to do or was easy to use. When it came to their bank’s mobile apps, things were even worse. Only 25% agreed that their bank’s mobile app did what they wanted, and slightly more than a third agreed it was easy to use.

Changing landscape

In the United Kingdom, open banking reforms are rapidly reshaping the landscape. PSD2 (Payment Services Directive 2), which was implemented this year, enables third-party providers to analyze, develop, and customize services for individuals in an effort to draw them to their financial services. In this new environment, traditional banks’ IT teams, systems, and processes aren’t structured to compete against more nimble fintech startups or even global technology companies. From North America to Asia, similar reforms are pending, so the question isn’t whether change is necessary, but rather how soon every bank needs to adapt.

To help you understand the complexities facing banks’ software teams and how they must transform, I’ll be hosting two webinars this summer, Transform or Perish: How to Optimise Mobile Banking Experiences with New Relic and Unlocking the Open Banking Opportunity with New Relic (see below for event dates and times).

Among the topics we’ll be discussing in this series include:

  • How to gain a full understanding of what’s happening across your entire stack—from the mobile app, APIs, and infrastructure to the customer experience
  • Ways to reliably transform and scale complex technology stacks and deliver new APIs to market
  • How to ensure the availability, functionality, and speed of new systems as well as third-party services
  • Methods to connect the performance of your digital properties to your organization’s bottom line

High stakes for banks

From retail banks to fintech companies such as Alkami Technology, Inc., which offers online and mobile banking solutions for credit unions and banks, optimising the end-user experience is critical for success in the digital banking era. That’s where New Relic can help, by enabling organisations to monitor and track application performance, scalability, resiliency, customer feature usage, and more for their web and mobile apps.

As Alkami has shared, New Relic provides their customers “an end-to-end picture of performance and customer experience for their online and mobile banking capabilities.” Alkami’s clients want “to know more about how customers are using and experiencing the software” and New Relic helps provide “insight they need to inform their business decisions related to digital banking.”

The stakes are high. As regulators make it easier to switch banks, consumers—in particular younger people—are expected to look to big tech providers they already admire and that have expertise in delivering great mobile experiences. We’ve seen evidence of this already. An August 2017 World Economic Forum report found that “banking and insurance is being shaped increasingly by large technology firms supplying critical technology to the sector, opening the door to direct competition at a later stage.”


Sign up for both of our free, upcoming webinars:

Webinar: Transform or Perish: How to Optimise Mobile Banking Experiences with New Relic
Aug 08 @ 10:00 AM BST / 11:00 AM CEST (EMEA)

Webinar: Unlocking the Open Banking Opportunity with New Relic
Aug 15 @ 8:00 AM PST / 11:00 PM EST (North America)
Sep 5 @ 10:00 AM BST / 11:00 AM CEST (EMEA)

Manesh Tailor is Director, Financial Services Solutions, at New Relic. He has spent nearly two decades as a developer or adviser to large enterprises, in particular within the financial services industry, on their digital transformation initiatives ranging from adoption of new platforms to deployment methodologies. View posts by .

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