What Banks want from Service Providers??
The number of service providers for banks is increasing massively and banks now have the choice to pick considering numerous factors. With growing need, expectations are also growing and banks are really making informed decisions when it comes to picking the right service providers or vendors.
Let’s take a step further and see what their expectations are in 2018 and what can really help them surpass their competitors:
- Advisory Consulting services: IT giants usually have a fixed set of services, which are provided to banks. Additions such as advisory consultancy services may not be a part of that package and that makes things harder because banks may not be sound in the technologies or processes that are being employed. Banks would, hence, really like to be guided through the process and any service provider assuring that would get an automatic edge.
- That one extra value-added offering: Is it only the said service that banks are looking for? No. They would definitely like some value adds from their service providers. This could be as simple as providing suggestions wherever necessary to optimize the entire process or helping out with test case repositories or some sort of automation, or guidance on certification with schemes etc. The vendor that can help them train in-house or create process documentation for banks end users will be added advantage. So, they would prefer a vendor meeting these criteria after checking their past success record.
- Flexibility: As aforementioned, IT giants in the name of ‘standards’ have some fixed set of processes they follow, services they provide, and the amount they charge. Not all banks may be able to afford this kind of rigidity or being dictated or intimidated by them. That’s why if there are service providers that are flexible with their approach and are willing to go extra mile for the client are always preferred.
- Technological help: Getting services from one vendor and hiring another vendor to help with them technological products or advancements can prove to be hassle-ridden. If one vendor can do it for them, a lot of time will be saved. Also, banks will be comfortable working with their existing vendors because of the trust factor. This convenience will lead to confidence, which will ultimately increase the probability of a successful outcome.
- Adaptability to new banking trends: Recently banking industry is facing challenges and some competition from non-banking institutions in the same space. With open banking or Payment Services Directive (PSD2) coming into the picture, banks have to take additional steps to stay ahead of the new players in the market. Open banking is pretty much what the name describes: Banks are now obligated to be transparent. This massive change, which came into effect in January this year, has made banks more proactive and attentive. They have to reassert their existence as well as their position in the market. Thus, if vendors provide banking API support they will choose them over the others. Here, we must keep in mind that open banking may not be all bad for banks. While technical challenges will arise, due to which the pressure on vendors will go up, the number of strategic opportunities such as partnerships and collaborations are abundant.
We have indeed seen a great shift in momentum in the banking industry due to which we can expect the mode of operation of banks to change as well. During this shift, service providers really need to adapt and ensure they serve banks to their potential because banking, regardless of the number of new players, will remain the core of the financial ecosystem.
Having our presence in this industry and getting the footprint stronger we offer these as a part of our services to our clients. It’s always great to build up a friendly and healthy relationship that delivers successful projects. Verinite is committed to achieving its client’s requirements but also helps identify what they ‘need’ more than the ‘wants’ or ‘wish lists’. We believe we can address this area on our project engagements and thus delivering the best results!