Moving to digital banking

Video feature

23 June 2017

Tamás Braun from W.UP highlights the challenges facing banks who want to move sales to digital channels.

Removing friction from the customer journey and finding ways to interact with clients in real time are the two biggest challenges faced by banks wanting to go digital. That’s according to Tamás Braun, head of international sales and business development at W.UP, who recently spoke to Efma at its Distribution Summit in London.

To move sales to digital channels, banks must adopt new methodologies that make the customer journey more seamless, said Braun.

“This is a big challenge because you need to mix digital with physical and you need to find out where those opportunities are to enhance or improve processes,” he commented, adding that the second challenge is technology. “Some banking products are not that complicated and can easily be sold in a matter of minutes, whether it’s an overdraft or credit extension, or insurance for a high value purchase. To support that kind of application or process, you need real-time discovery of data and you need to have the technology in place to collect, analyse, manipulate, and finally, discover that the customer is in a certain life situation, or making a particular purchase.”

The challenge here, said Braun, is that this must be done in real time, otherwise the customer will go elsewhere. However, a lot of banking technology is not yet ready to facilitate real-time interactions with customers. This is where digital banking software companies like W.UP can help.

“We realised that the technology challenge is something that a lot of the banks will have an issue with so we have created an app called Sales.UP,” said Braun. “We’re talking about distributed, high performing, large volume databases where real-time interactions are possible. Within Sales.UP, we’ve also created a library of customer insights so that the banks don’t have to go through the deep analytical process to analyse customer behaviour, which can be complicated in some cases. We bring that knowledge in a form of a pre-packaged product to the banks.”

Braun highlighted how W.UP is helping MKB Bank in Hungary to digitise its core banking systems and create an open banking platform so it can work with other financial services players. He also shared his predictions for digital banking in 2030.

“Banking will not be just one service provider, bank and financial services will be fragmented – so I will buy insurance from a provider for a product I bought at a separate bank,” he said. “The ecosystem will evolve tremendously and it will not just be banks, it will be technology companies, payment institutions and with the advancement of PSD2, the list will be endless of who could actually play in this market. At some point, the technology change within banks will bring them to a state of maturity where they could eventually compete with large technology companies for user experience.”

Watch the full interview with Tamás Braun:

Keywords : Digital/Mobile channels , Sales management , Fintech , Bank Products & Services

Geography : Hungary