Our digital lives are changing banking at its core

Euan Davis at Cognizant Center for the Future of Work.

Euan Davis at Cognizant Center for the Future of Work.

Nordic banks have long been pioneers of innovative digital solutions. Now they stand on the threshold of the next level of digitalization, meeting changing customer expectations with truly personalized products and services.
Cognizant is at the forefront of helping the banking industry transform business models and become winners in the new economy.

We live in a world where individuals, things and processes are generating ever increasing amounts of digital information. These vast fields of information are connecting people, devices and processes, creating unique virtual identities. Cognizant calls these fields of digital information “Code Halos” – and they are key to creating value and successful enterprises in the coming years.
“Truly understanding the data generated by social tools, mobile devices and applying analytic technologies will strengthen processes, products and generate value. This will be what distinguishes successful businesses in the future,” says Euan Davis at the Cognizant Center for the Future of Work. “We have already seen this happening in several industries, where the winners have been tremendously skillful at using algorithms to analyze digital footprints—Code Halos—to create a better customer experience. By doing so, they have completely overtaken their respective markets.”

Nordic banks lead the way
Euan Davis points out that in the Nordic market, banks were early in building comprehensive electronic infrastructures, with sophisticated digital channels reaching into their customers. This gives them a lead, now that digitalization is moving to the next level.
“Nordic banks are at the front of this development and are extremely forward-looking. They have already digitalized business to a great extent and are often way ahead of other parts of the world when it comes to things such as online and mobile solutions. I believe the next logical step in this innovative process is to start to make more meaning from data and create entirely new ways to interact with customers,” says Euan Davis.
Closely connected to the new business opportunities provided by the ocean of digital information surrounding us are the needs and expectations of the next generation of banking customers – the millennials. In order to understand what the younger generation wants out of banks, Cognizant ran an online community called “You are the Future of Banking” targeting young people in Sweden. Two areas stand out – millennials want more personalized banking and they want faster, more innovative products. They expect the same degree of personalization and innovation from their banks as they are getting from other industries that they do business with. And if they do not get what they want out of traditional banks, they will not hesitate to switch to emerging digital alternatives.
“Young people are clearly asking for a richer digital experience,” says Euan Davis. “They want better profiling so that services are customized around their financial needs, with tools to instantly access and make sense of their financial data. Products need to be innovative, with more niche products and faster product development. And there is a real willingness to collaborate with banks on designing solutions. Banks should really plug into this.”

Global leader
While data privacy and security remain central concerns that need to be addressed properly, banks which want to keep their competitive edge and become winners in the new economy need to utilize digital data to mass customize services and products throughout the value chain. Harnessing and managing Code Halos will create truly digitally minded business models, which can meet rapidly changing customer expectations. Cognizant is a global leader in business and technology services, with deep industry expertise and experience. Consistently ranked as one of the top consulting and IT service providers, the company has a unique vantage point in delivering state-of-the-art solutions.
“We are witnessing something of a revolution,” says Euan Davis. “Companies that make meaning of these digital footprints – these Code Halos – are the ones who will win in the new marketplace with products and services that customers want – not least the new generation of customers. Leaders at Nordic banks get this. I believe we will see this as the main driver of business over the next decade.”

Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 171,400 employees as of December 31, 2013, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world.

Visit us online at www.cognizant.com
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