Group 20 – The banking innovations in our lives: when revenues meet satisfaction

The banking innovations in our lives: when revenues meet satisfaction

Table of Content

  1. Introduction
  2. Mobile applications are the best modern innovations
  3. The aid of technology: Cardless ATMs to attract customers



   The banking system has known a lot of changes and a wave of innovation in order to retain its customers because of rough competition .

Some commercial banks are investing in new technologies in order to facilitate and secure any transaction , here is exemples of the services given by innovative banks :

-Biometrics system : with this technique , it might be the end for the old way of taping password  or PIN codes . To get a more safe method to make transactions , MasterCard is prepping the launch of a new contactless card with an embedded fingerprint sensor .

-In-car apps : One way to get access to your bank account while driving is to use a mobile banking app , and spain’s most influential bank has created it . This application is controlled by using a voice control functionality with Ford’s SYNC that allows drivers to check their account balance and transfer funds and other services as locating nearby branches .

-SmartWatches : It could be one of the easiest ways for customers to manage accounts only by using their wrist , and that is what UK’s largest building society Nationwide is working on by developing apps for this demand.

Let’s see now in details the other aspects and advantages a bank can have from new technologies.

Sources: tech

  1. Mobile applications are the brand new innovations

    A. Attracts new customers


When banks want to attract new customers, they have have to propose interesting rates and interesting financial plans to potential new customers.

But this was in the old days. Nowadays, banks need to show in addition to their interesting loans rate that they are innovative and “connected”. These innovations necessarily go through mobile application. These mobile applications enables users (banks’ customers) to visualize their bank accounts and to manage their budgets via these little software on their phones, anywhere, at anytime.

These applications are in a way all the banks services in a pocket. These mobile applications are the new commercial arguments for banks to get new customers. Indeed, when a new client is looking for a bank, the one which proposes many options via its mobile app could be the winner.


b) Enables to reduce costs

In addition to that, banks are able to reduce drastically their costs.

How? By different ways :

  • the first one is by proposing new commercial plans directly on the application. No need to hire any sales force, the application can do the job;
  • then, instead of sending each month a report of the account activity, the mobile application can make reports and the customer can download it directly through the app.

This enables banks to propose very competitive prices. The virtualization of banking is the 21st century war for prices.

Magazines have some good examples of great mobile apps for banking:

Video about Lloyds Bank’s Mobile Banking App:


2) The aid of technology: Cardless ATMs to attract customers

1. Innovative

Cardless ATMS provide many benefits: security and consumer appeal. Regarding security, there are extra steps to verify identity when dealing with the account in cardless ATMs. And finally, regarding consumer appeal, this is convenient and that is what consumers want – Things to be easier yet more effective.  

2. Efficiency:

Millennials are a generation that demand for all things with efficiency and convenient, yet also time-saving. A mobile-friendly way to use ATMs might not directly pull them out of the branch, but some features will.The Diebold cardless ATM app allows users to transfer funds to other individuals. The money can then be picked up at an ATM by means of a one-time SMS PIN. At no point does either party need to interact with a teller to transfer the money. This enables one to save time.


Group 9-Banking innovation: how are modern banks attracting new customers.

“Banking products and services have been getting more and more commoditized, with price becoming the prime differentiator between banks.” (Top 10 trends in banking in 2016) In this competitive market, a bank needs to provide “new” products and services to attracting new customers. The new technology has a huge impact on the working style of the bank industry. Customers are no longer satisfied with the old services and products they used to have. “This situation has denied the banks the much-needed information regarding this important area of financial innovations sometimes leading to reverse causality in the innovation-financial performance relationship.” (Blohm, Ivo, et al.) In this article, it will describe two excellent examples of banking innovation.

 Product and services innovation

Basically, every bank is providing digital services to its customers. To win this game, a bank is focusing on providing better services. A good example is Fidor Bank. “A free bank account built around an Application Programming Interface (API), the Fidor Smart Current Account supplements classic account services with internet payments and innovative banking products. The integrated API platform allows customers and partners to directly connect their computer systems with those of Fidor Bank. The open financial ecosystem provides app partners with the ability to continuously increase the range of products and service that enable customers to select products and services they want from either Fidor Bank or third party providers. “(Skinner) Fidor Bank provides the innovative platform to access their personal account efficiency and a bigger market which include the products and services from Fidor Bank and its partners for its customers. “As of February 2015, Fidor Bank has achieved more than 75,000 fully legitimate banking customers, up from 25,000 three years prior and approximately 270,000 German users on its Fidor online community up from 160,000 at the beginning of 2013. It is extraordinary growth for a digital bank that focuses on social banking with no branch network or internal advisers.” (Skinner)

 The channels innovation

In the global banking innovation awards in 2015, the Bank of East Asia(BEA) won the channel award. They provided highly flexible and digital branches services to its customers. Those branches located in the most famous commercial centre in Hong Kong. They simplify their service processes and implement paperless operation using the innovative digital technology. They have I-counter, I-window, I-Kit, I-zone, and I-panel services in the physical branches. For instance, the I-counter is operated by operating assistants during regular business hours and converted to I-Teller mode after hours of operation. Customers can process daily banking transactions through video telephone after business hours.

With those technologies, customers can open an account in BEA within 15 minutes and 5 minutes to finish their application of credit cards.
This 24 hours opening business model is welcomed by the customers. The degree of this services is more than 95%. The average of monthly new customer increases 17%.



works cited

Amit, Kumar. Avinash, Saxxena. Vamshi, Suvarna. Varun, Rawat. “Top 10 Trends in Banking In 2016.” Capgemini. (2016).

Blohm, Ivo, et al. « Managing Disruptive Innovation through Service Systems–The Case of Crowdlending in the Banking Industry. » (2016).

Skinner, Chris. “The most innovative banks of 2015. » BankNXT. N.p., 20 Sept. 2016. Web. 30 Jan. 2017.

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