BAI Banking Strategies: Global Head of Cognizant’s Financial Services Practice Writes About Applying SMAC Technologies for Competitive Advantage

“The global banking and financial services industry is facing historic challenges but fortunately, banks now have transformational tools at their fingertips, including social, mobile, analytics and cloud (SMAC) technology,” writes Prasad Chintamaneni in Banking Strategies, the official publication of the Bank Administration Institute (BAI). “These powerful tools allow executives to adopt variable cost structures, increase revenue, improve products and services, expand market share and achieve nonlinear revenue growth. 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.”

Outlining the ways in which SMAC technologies enable banks to gain a more holistic view of customers, enhance customer loyalty, and optimize costs, Chintamaneni says that social media helps banks engage customers on a more personal level; mobile technology allows customers to engage in transactions anywhere, anytime; data analytics technology enables banks to gain a more granular understanding of their customers’ preferences and serve customers based on these insights; and cloud technology provides the platform and infrastructure to deliver customized technology and services in real time.

“The real power of SMAC technologies emerges when the four technologies are used together, giving financial institutions an unprecedented 360-degree view of each customer,” writes Chintamaneni. “Combining SMAC technologies 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…Ultimately, this granular, 360-degree customer view made possible through SMAC technologies can improve the loyalty of existing customers, help banks engage these customers in new services, and increase the market share for banks by attracting new customers.”

Chintamaneni points out that the fundamental question for banks of all sizes is how to achieve the multiplier effect and gain a granular view of their customers. In order to integrate and leverage SMAC technologies to achieve the multiplier effect, he suggests, banks must make the most out of the “easy data”, rethink customer service, and challenge the norm.

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