The Huffington Post: Cognizant’s Head of Banking and Financial Services in the UK & Ireland Says SMAC Technologies can Help Financial Services Companies Drive Value with a Holistic View of the Customer

“The global banking and financial services industry is facing unprecedented, historic challenges,” writes Tony Virdi. “With customer and regulatory demands soaring while revenues plateau, financial services enterprises (FSEs) cannot simply tinker with existing processes for incremental boosts in revenue or small cost reductions.”

Virdi outlines how banks can leverage the transformational technologies of social, mobile, analytics and cloud (SMAC) to gain insights into customer needs. “Banks that effectively use SMAC technologies to better understand and serve their customers are emerging as leaders in the industry, and will continue to gain a competitive advantage in the market. These powerful tools allow executives to increase revenue, improve products and services, expand market share, and achieve what we call ‘bending the curve’ or nonlinear revenue growth,” he says.

Virdi says that social media helps banks engage customers on a more personal level, and that FSEs can deliver targeted messages and provide individual support using social media. Mobile technology allows customers to engage in transactions anywhere, anytime—increasing convenience for them and reducing branch costs for FSEs. Applying data analytics technology to crunch the trove of data gathered from customers’ social and mobile behavior allows banks to gain a more granular understanding of their customers’ preferences. Cloud technology provides the platform and infrastructure to deliver customized technology and services in real time.

“The real power of social, mobile, analytics and cloud technology emerges when the four technologies are used together, giving FSEs an unprecedented 360 degree view of each customer,” he writes. “Combining SMAC technology into an integrated approach transforms a bank’s ability to understand and meet its customers’ needs. This comprehensive view of the customer can be used to effectively engage existing and potential customers through tailored marketing strategies.”

According to Virdi, the challenge for banks, therefore, is to integrate and use SMAC technologies to achieve the multiplier effect. He offers three broad solutions to address this challenge: make the most out of the ‘easy’ data, rethink customer service and challenge the norm. “The landscape of SMAC technology is emerging and growing, and FSEs that stay ahead of the curve will understand how to develop and maintain strong relationships with their customers by delivering better and more contextualized, customized, relevant services,” he concludes.

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