Banks globally have been talking about digital transformation for a few years, but the pandemic has accelerated changes in customer behaviors and expectations, some of which were already underway. The French are increasingly expecting digital and personalized services from their banks, but they are not yet ready to offer them, especially in the more complex businesses that deal with business loans.
A recent McKinsey study on accelerating digital sales by French banks (September 2021) illustrates this point well. It shows that 75% of French people carry out financial transactions online, compared to only 19% who go to their own branches. Despite this, French banks offer fewer digital products than other channels and the overall digital customer experience is still insufficient. In order to offer this type of service, banks will have to modernize their IT systems in order to break them down and allow the free circulation of data, while maintaining the highest levels of security.
As French banks seek to improve their customer experience, we are seeing an increase in interest in our services. The French market has clearly reached a tipping point in terms of digital transformation and we are now here to support it.
What exactly does nCino offer in terms of digital transformation?
Until digital transformation is applied to backend processes and operations, banks will continue to be held back by manual inefficiencies and unsuitable technologies. We help financial institutions integrate end-to-end digital processes to break down organizational silos and enable large-scale automation. This reduces costs for the bank and improves the customer experience.
Our platform connects front-office, middle-office and back-office through a single platform that offers better visibility of the client portfolio to different business teams, automates repetitive tasks and integrates compliance and regulatory procedures throughout the process. loan.
Our platform is called nCino Bank Operating System®, because it has the particularity of being the central operating system that allows banks to view and manage their operations. This leading platform is designed by experts to transform the way financial institutions operate and interact with the customer. It also provides a flexible infrastructure on which continuous digital transformation can be conducted so that banks have the ability and flexibility to react to changing market demands and customer expectations.
Do you identify specific difficulties in the French market?
When it comes to financial services, no European market is quite the same. Financial institutions in France face specific local issues and the regulatory environment is complex. For example, in addition to pan-European rules, there are specific banking regulations for France, such as the Monetary and Financial Code.
We have created a local team that has a deep knowledge of the market and that allows us to create products and services that meet the specific needs of French banks.
We work with several Quebec financial institutions, so our cloud solutions have already been implemented in French and we are now optimizing this foundation for the French market.
We are taking the same localized approach in Europe, parts of Africa, Japan and Australia as we aim for global growth.
You recently announced your first French client, can you tell us what you did for him?
Yes, we recently announced our partnership with Natixis Corporate & Investment Banking (CIB), which is the second largest banking group in France thanks to the Banque Populaire and Caisse d’Epargne networks. The company uses our AI-powered “automated dissemination” feature to accelerate customer credit journeys and make the process more efficient, as well as to better leverage financial analytics in decision making.
Ultimately, the implementation aims to improve the customer experience. We have increased automation and improved collaboration within the company, resulting in much faster credit decisions for customers, as well as improved regulatory compliance.
Do you have any advice for banks that have yet to embark on the digital transformation? How can they best use the cloud?
Done right, digital transformation is a colossal project. Given the current economic climate, some banks may be reluctant to overhaul the entire infrastructure at once. My advice is to make light but impactful “micro-transformations” to kickstart the process and get a return on investment.
In this approach, processes, services or products are transformed in a modular way, allowing customers or employees to get used to the change and the project to demonstrate its relevance. In my experience, starting this way tends to be an avalanche. As the benefits of the platform become clear to everyone and stakeholders, digital transformation feels more like a constructive and manageable project than a revolution.
Numerous regulations have been adopted across Europe to integrate ESG reporting and compliance into the provision of financial services. How should banks include these elements in their digital transformation process?
Linking ESG strategy to day-to-day execution is largely a matter of technology orchestration. Banks don’t need to do all the work alone. The research sector that exists around financial services and wealth management, providing information, data and evaluations on potential investments, has taken on the task of providing additional information on ESG performance.
Companies themselves track their key ESG performance indicators through audits, certifications and adherence to industry standards. A platform that integrates important third-party data sources and offers a customer portal for uploading the necessary documents allows banks to evaluate customers based on their ESG performance and understand and report the impact of specific transactions on their ESG profile. wallet. Once the core technology layer has been created, the bank can create extensions to meet specific needs, such as monitoring alignment with EU taxonomies, monitoring specific ESG conditions related to offering loans, or creating loans. environmental impact models.
Cloud platforms like nCino can provide this out-of-the-box infrastructure, which means businesses can focus on differentiation and other core businesses. The “cloud” element is also important, as it allows organizations to securely share resources and rotate quickly when needed.