It has been said for a long time over the past few years: to remain competitive, banks can no longer ignore the use of innovation, in technology, in their approach to customers and in their product offering.
In its recent report "Banking in Luxembourg 2021", PwC Luxembourg hits the nail on the head again, pointing out that banks have long wanted to continue with an old model. But this time, "the digital age is here to stay".
After analysing the Luxembourg banking landscape, the consultancy and auditing firm lists six key innovations that will enable them to reach the top and stay there.
1. Develop the perfect mobile application. This is the main area of innovation for banks. Apps help customers in many areas (budgeting, financial advice, etc.).
2. Make the widest possible use of biometric data. These are the ideal tools to guarantee better security. Today it is possible to use fingerprints, eye scans, facial recognition and finger blood vessel scans.
3. Provide conversational assistants. Virtual assistants, chatbots and machine learning algorithms... Thanks to the latest artificial intelligence and data analysis, banks have tools that allow them to communicate more easily with their customers.
4. Develop strategic partnerships. Successful banks have chosen to innovate hand in hand with companies specialised in financial technology. This choice allows them to find solutions more efficiently and more quickly.
5. Promote sustainable finance. Governments are pushing private investors to invest in the energy transition. Banks must therefore become the relay of this strategy against global warming which will be central for several decades.
6. Focus on SME solutions. The SME segment is very profitable and banks are increasingly targeting it. In addition to financing, they provide them with a large number of innovative value-added services.