By Amy CramptonJanuary 20, 2018 10:09:12″We have to be able to offer better value to customers,” said Robert Schlesinger, CEO of the Bank of New York Mellon (BNY Mellon), in a conference call with reporters.
“Our competitors can do it, but not as much as we can.”
Banks are starting to see the benefits of new technology, which helps them compete on speed and quality.
“The internet is allowing us to reach customers across the globe in ways that we never could before,” said Brian Shih, president and chief executive officer of the bank.
“It’s really opened up new opportunities for us.”BANKS SEEING MORE FLEXIBLE TECHNOLOGYIn addition to speed and ease, the new technology is also bringing with it new competition, analysts say.
BNY Mellon, which owns the majority of the world’s largest commercial banks, is moving to a “single-sign-on” banking model, where its customers sign up to use its service.
“Banks will benefit from the ability to create new products and services that they don’t currently have,” said Eric Li, director of research at the consultancy McKinsey & Co. “They can use existing products and have the ability of building products and features to make it easier for customers to transact and get better service.”
For example, a consumer might want to make a payment to their bank.
In addition to getting the credit card information, the bank will also send a payment confirmation email.
“You can use it on any of the products we have,” Schlesingers said.
Banks can also offer other ways for customers, such as a virtual currency, that they can use to make deposits, or make money-back offers.
“In a lot of ways, banks are seeing this new technology as a benefit, not a detriment,” said Michael D’Ambrosio, an analyst at Morningstar.
“Because it can allow them to compete more aggressively, they can offer products and offer a better experience.”
“The future is now,” he added.
“We need to have a better banking experience for the next generation.”WHAT’S NEXT?
Banks want to expand their offerings beyond just financial services to include health care, retail, real estate, retail and even home security.
The banks have a few options to consider, including adding a credit card option.
But, as Bloomberg reported, they aren’t likely to go the way of Wells Fargo and other major banks.
Instead, the banks are looking at ways to tap into the new digital payments that are emerging, such the blockchain, which is the underlying technology behind bitcoin and other digital currencies.
“We need a financial technology that is able to scale,” Schlisingers said, adding that “that’s why we’re moving to single-sign on.”