Banking Strategy: Thrive Amid “Explosive” Challenges

Financial institutions are facing “explosive challenges” such as rising interest rates, commercial real estate uncertainty, and stricter regulation. That is the view of David Schiff, Senior Partner and Head of Retail & Consumer Banking at West Monroe and a recent presenter in the PULSE^® Live 2024 Webinar Series.

When it comes to banking strategy in this environment, data is a key success factor, said Schiff in the webinar, Banking Strategy: Thriving in the Face of Change. Viewers who did not register for the live webinar will be asked to fill out a short registration form to access the recording.

Adding to the complexity of the current environment is fierce competition from fintechs and non-traditional providers. Schiff cited a Finastra report on Banking as a Service that predicted its use will grow 50% in the next 5 years.

Financial institutions need to be able to analyze and act on data from across their organizations, including debit transactions. The ability to analyze debit transactions generates opportunities to create value for both the institution and customers, says Schiff. He noted that organizations that invest in prioritizing and advancing their data strategy increase profitability by about 12.5%. That is a substantial lift in a thin-margin business.

To realize potential value, Schiff recommends that institutions examine and improve the account-opening experience. If issuers maximize card activation and minimize the lag between when a customer opens an account and when they are able to digitally transact with those funds, the debit card is more likely to achieve top-of-wallet status.

Schiff offers a host of other strategic approaches to remaining competitive in the face of today’s challenges, including six key considerations for debit programs. Watch the webinar to learn more.