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customer analytics in retail

Customer Analytics Engagement: How a leading banking and insurance company witnessed a 2x increase in customer loyalty

The client is a leading banking and insurance company based out of Denmark with a strong presence in more than 15 countries. With the rise in its global customer base, the company was looking at deploying an innovative approach to analyze attributes, journeys and behavior of its customers. Their existing approach failed to successfully engage customers in ways that would help them boost customer loyalty. Therefore, they approached Quantzig to leverage its customer analytics solutions to gain in-depth insights into end-user behaviors.

By leveraging Quantzig’s customer analytics solutions, companies can effectively track and monitor customer journeys and reduce churn. Request a FREE proposal to gain in-depth insights into our advanced analytics solutions.

Business Challenge

A host of different factors such as speed, agility, and access to reliable information are intersecting to subtly change the way the banking and insurance sector will operate in the years to come. Companies in the banking and insurance sector have traditional business models that aim at implementing secure systems. These models are unable to track and analyze customer journeys. This is where customer analytics solutions can help.

Our analytics experts help companies in the banking and insurance sector to reap maximum benefits from a well-segmented and thoroughly analyzed customer database. Get in touch with them right away!

The client, a leading company in the banking and insurance sector in Denmark, found it challenging to identify profitable customer segments, improve customer relationships and win back former customers. The declining customer trust and increasing risks prompted the client to take proper measures to deal with these challenges by leveraging advanced customer analytics solutions and approached Quantzig to help them effectively improve customer loyalty by reducing churn.

Solution Offered and Value Delivered

To help the client tackle their core business challenges, customer analytics experts at Quantzig adopted a comprehensive approach that aimed at gaining a 360-degree view of their customers in the first step. By leveraging Quantzig’s advanced customer analytics solutions, the client was able to identify higher-value customers which, in turn, helped them spend more time building customer loyalty programs to drive bottom-line results. Also, the banking and insurance company was able to identify flight risk customers and factors affecting their decisions.

Quantzig’s customer analytics solutions use powerful predictive models to determine which actions typically precede a lost customer or sale and allow businesses to leverage data discovery to identify factors that affect churn. Request a FREE demo to know more.

Customer analytics solutions also helped the client to:

  • Increase customer loyalty by 2X
  • Identify potential customer segment
  • Better understand customer behaviors

Why choose Quantzig as your next analytics partner?

Quantzig is a leading analytics solutions provider that is well-known for assisting clients across the globe with its advanced analytics solutions. We help organizations across industries to gain data-driven insights and transform themselves into an analytics-driven organization. Our highly skilled team of data scientists, consultants, and analysts can help you analyze datasets in real-time so that you can take appropriate actions and solve critical business issues before it becomes a major crisis. Also, we work in collaboration with our clients to help them identify new opportunities, define robust solutions, and develop cutting-edge visual dashboards.

customer analytics in retail

4 Ways Banking Analytics is Transforming the Banking Industry

The application of big data in banking can help companies to harness siloed data and offer personalized banking solutions to customers to drive profitability.

With the advent of big data analytics, the banking sector is focusing more on responding to the expectations of customers in real-time. Today companies in the banking industry are adopting to latest technologies to offer best services to their customers and stay ahead of the curve. By leveraging banking analytics solutions, companies are now able to digitize their core business operations and analyze their organizational structures. Consequently, digital technologies and new delivery platforms have become very important to drive organization performance. Companies in the banking sector are now focusing on integrating their payment methods, re-configuring delivery channels, and applying advanced analytics in banking operations. All these have paved the way for massive transformation in the banking industry. In this article, our team of analytics experts has discussed a few important ways in which banking analytics is helping the banking sector to design targeted marketing campaigns, manage risks efficiently and remain profitable and improve profitability.

Learn how our customized analytics solutions can help you gain real-time visibility into your customer data. Request for more information below.

banking analyticsHow is banking analytics transforming the banking industry?

Through risk management

Banking analytics solutions can provide actionable insights into transactions and customer behavior patterns. This can not only help businesses to avoid potential risks but also offers detailed insights into factors affecting profitability. Also, using big data analytics, companies can analyze regional data of their customers and also the historic sales data. Furthermore, this can help them to determine the market trends and design their strategy to sell their services. Additionally, with the help of advanced analytics in banking, companies in this sector can analyze the factors that cause borrowers to default on loans.

By automating marketing and sales processes

Banks can leverage banking analytics solutions to analyze the sheer volumes of customer data to better understand their customers. This can help them to understand the needs and demands of customers and addresses them proactively. Also, by utilizing big data analytics in banking, banks can automate the sales and marketing processes. Consequently, the right products can be marketed to the customers at the right time and through the right channel.

Are you finding it difficult to ensure complete safety across all financial products, processes, and transactions in your organization? Our banking analytics solutions can help. Get in touch with our experts now.

By guiding the product innovation phase through performance analysis

Banks can use banking analytics solutions to gauge the performance of the business as well as employees. This can help to design new products and offerings based on the current demand of customers. Also, this can help them to train their employees for peak times and achieve the target in the real-time. Banking analytics can also be utilized by banks to understand the nature of products required by customers and make offerings accordingly.

Our big data analytics solutions can help you manage risks more effectively to maximize ROI. Request for FREE proposal to gain more insights into our portfolio of services.

By providing useful insights through analytics dashboards

Companies in the banking industry can use banking analytics dashboards to visualize customers data in real-time through graphs, charts, and customizable interfaces. Such data can be further used to run queries and analyze the type of loans, quality of assets and monthly profit from the business operations. Managers can run queries and pull reports based on their needs. They can analyze the percentage of loans by type, monthly operating expenses or profit and loss by region.

Quantzig help organizations to get a real-time view of their performance and factors that drive costs, and financial growth through customized analytics dashboards. Request a FREE demo right away to know more.

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Is Customer Analytics the New Kingpin for Banking Services Companies?

For modern banking services providers, understanding the customers is the foundation for a sustainable competitive advantage. The internal and external data sources available to banking services companies can be great sources for guiding product development, customer communication, innovation, and growth. This data can be further meticulously analyzed using advanced capabilities such as customer analytics through which banking services companies can get to know their customer at a more granular level. Furthermore, it can help in effective customer segmentation that reveals specific intelligence that could otherwise be obscured by the sheer volume of data. These insights aid banking services companies identify messaging strategies for marketing and customer service strategies and also gain a better understanding of the customer lifecycle and predict customer behavior.

Why is customer analytics important in banking services?

It is high time for banking services companies to up their game in customer analytics. Here’s why:

Analytics is the new normal

 As a result of low-interest rates, moderate fee revenue, onerous regulation, and a less than robust economy, the banking services providers are expected to remain revenue challenged for the foreseeable future. So, it will be more important than ever for banking services providers and credit unions to focus on all possible strategies that would help them reduce costs and increase revenues. Some of these strategies that can be achieved by customer analytics include:

  • Better management (and measurement) of sales leads across channels
  • Inclusion of custom customer incentives/rewards to influence behavior
  • Improved targeting of customer segments
  • Moving from a product focus to a customer focus 

Achieve customer centricity

Customer delivery and communication channels are expanding. This means that more customers interacting with their financial providers and banking services companies are using online and mobile channels, making it easier to gain insights into real-time sales and services. Analytics can respond to this rapid migration to digital channels by:

  • Integrating sales and service tools within a new digital environment
  • Improving branch efficiency and effectiveness
  • Helping to drive high value, high touch traffic back to branches

Technological changes

Customer analytics is no longer a domain that can be used and accessed solely by highly skilled specialists. Today, these solutions can be easily accessed and used by marketers and other business users to answer complex inquiries. Improvements include:

  • Increased number of specialized vendor solutions and expanded talent
  • Collapsing of product silos and ability to process increased data sources
  • Cloud-based solutions

Establishing analytics as a true business discipline can help banking services prContact USoviders to grasp the enormous potential. Get in touch with us to know how we can help banking sector clients in establishing a customer analytics program to suit their organizational requirements.

How can customer analytics help banking services?

We at Quantzig have identified six levers that make customer analytics a core component for banking services companies to consider:

Customer Insights

Most financial marketers are highly interested in the ability to gain a better insight on current customers. Demographics and current product ownership form the foundation of customer insight. However, behavioral and attitudinal insights are gaining in importance as channel selection and product use have become more differentiated. Take the instance of sentiment analysis and social media analysis that are helping companies analyze in-depth about their customer emotions on social platforms. Furthermore, scoring models such as FICO is especially useful for banking services companies to analyze consumers’ credit history, loan or credit applications, and other data to assess whether the consumer are likely to meet their payment obligations on time in the future.

Business strategy

Customer analytics proves to be highly useful in banking services companies for product and channel development as well as economic forecasting, business improvements, risk analysis, and financial modeling.

Managing customer experience

Using customer analytics for customer experience management (CEM) helps banking services providers in delivering personalized, contextual interactions that will assist customers with their daily financial needs. Moreover, if done correctly, customer analytics enables the real-time delivery of product or service offerings at the right time, thereby ensuring a better customer experience.

Risk management

One of the more common uses of ‘big data’ today especially for banking services companies is in the area of risk and fraud management. The applications of data mining have expanded well beyond providing internal purchase and balanced insights. It now even includes transaction patterns and social media interactions that can provide a leading indicator of potential losses or fraud. The integration of structured and unstructured data in banking services can also be leveraged for traditional risk management including pricing decisions.

Marketing

Another traditional use of customer analytics in financial services is the ability to increase the effectiveness and efficiency of sales and marketing. The ability to derive insights on the likelihood of purchase based on the available information on individual customers has ushered in a seismic shift in marketing from product centricity to customer centricity. Banking services companies and credit unions are now able to make unique, timely, and relevant offers based on available customer insight rather than offering products and services based on what the financial institution would like to sell. This allows banking services providers and financial marketers to significantly improve the efficiency of marketing spending and the close rate of sales leads.

To learn more about how Data analytics solutions work in banking sector companies, request a proposal.

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Implementing customer analytics for banking services

The future is already here. The only drawback is that it is not evenly distributed. Banks services and companies in every other industry are already deploying advanced analytics to move their businesses forward. Quantzig has identified that almost every top bank lists advanced analytics among its top five priorities. Most plan to invest further in these techniques. A few banking services companies are already seeing the rewards. By establishing data lakes and centers of excellence and using machine-learning techniques these leaders have already built substantial foundations for their business.

 How do you know what analytics capabilities to invest in for your business? All you need is an analytics expert that can guide you on leveraging the available data by avoiding pitfalls in banking services and accessing the broad set of opportunities. At Quantzig, we understand these needs of our clients and are committed to helping them bolster their analytics capabilities. Request a demo to know more about our analytics solutions.

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Top 4 Advantages of Big Data in The Banking Industry

The banking industry has witnessed the evolution of operations and delivery of services over the last few years. But it is a surprising fact that most banks have not been ablGet More Infoe to utilize the information in their own databases properly. This is gradually changing as the banking industry gears up to process the huge volume of data that is collected and created. The banking industry experts, in fact, say that there will be an immense increase in the volume of data before 2020. Therefore, big data in banking is a huge step towards the growth of the banking industry and will contribute immensely in its prosperity. Let’s take a look at the advantages of big data in the banking industry.

Big Data in Banking

#1. Prevention and Detection of Fraud

Big data in banking can help deal with one of the biggest challenges faced by banks today – frauds. Banks and financial organizations use analytics to find the difference between fraudulent interactions and legitimate business transactions. With the help of analytics and machine learning, banks can easily define normal activity on the basis of customer history and differentiate it from unusual behavior, indicating fraud. The use of big data in banking systems will help suggest immediate actions like blocking any irregular transactions. This stops fraud before it occurs and enhances profitability.

Continue reading to know more about the benefits of big data in banking or request free proposal

Answers to the questions

Fraud Analytics for a Leading Banking Firm

What the Client Wanted

Leverage fraud analytics to devise the perfect solution for fraud detection in banking.

The Outcome

The financial services industry player approached Quantzig to leverage its expertise in fraud analytics. The client wanted to devise predictive models for fraud detection in banking. Our analytics experts also helped the client to study their data patterns and strengthen their team’s ability by bringing to the forefront advanced levels of analytics insights that are aligned with their business needs.Request Proposal


Overview of the Financial Services Industry

In today’s financial services industry landscape, fraud analytics has been a buzzword for many years.  The financial market in the U.S is the largest and most liquid in the world, hence, investments in the U.S financial services industry offers significant advantages for financial companies. Though the financial services industry offers an array of financial instruments and services to empower its customers to manage risk, create wealth, and meet their financial needs effectively, there a few that need to be looked into to prevent major losses.

Quantzig’s fraud analytics experts offer robust solutions for fraud detection in banking, which enables players in the financial services industry to identify and implement the best practices to prevent fraud. Our solutions are a combination of subject matter expertise and analytics insights that are based on world-class methodologies to help ensure long-term business success.


Financial Services Industry Challenges

  • Establishing a social presence: The increasing discredit of social media platforms and its contribution to banking firms comes at an awkward time for financial institutions. The last thing on the minds of financial services industry players is associating their brand with anything that could potentially mislead their customers. However, owing to the growing popularity of social media players, companies in the financial services industry cannot afford to ignore such impactful channels with a wide reach. As more and more banks establish their social media presence, it will become quite interesting to understand how they manage it successfully.
  • Revised payment service directive (PSD2): PSD2 enables customers to make use of third-party providers to manage their finances. In the future, there are sizeable revenue opportunities for banking firms that position themselves as the destination for PISPs (Payment Initiation Service Providers). This is because new market players will approach the banks that offer higher service standards. Doing so enables banking firms to recapture lost market shares and some of their own transactions that flowed out of their system.

Fraud Analytics Engagement Summary

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About the Client

Headquartered in the U.S, the client is one of the leading players in the financial services industry, with over 45 branches all over the world.

Client’s Challenge

Owing to the fierce competition in the financial services industry, banking firms. especially those in the credit card business are forced to target low-value customers to expand their customer base. As players in the financial services industry try to reach out and acquire such customers they are increasingly faced with challenges related to the security of transactions. This has, in turn, resulted in an increase in the number of fraudulent activities and transactions making fraud detection in banking a priority for companies operating in the financial services industry. Owing to such factors, the client was looking at devising effective strategies for fraud detection in banking.

Business ImpactRequest Solution Demo

Fraud detection is of key importance for players in the financial services industry. The shortcomings of the traditional fraud detection systems are compelling leading players in the financial services industry to implement the best practices for fraud detection in banking. Fraud analytics played a major role in devising an effective fraud detection model for the client. The devises model also enabled the client to identify the fraudulent applications and prevent such transactions. As a result, cost savings obtained directly impacted their bottom line.

Insights on fraud detection in banking

Improvements in service efficiency clearly differentiate a banking firm in a highly complicated industry, such as the financial services industry. It brings banks closer to their customer and enhances the value of their services by preventing financial thefts. Fraud analytics has been a major contributor to fraud detection in banking by helping firms function smoothly.

However, it might be a daunting task for players to stay ahead of the curve by identifying and investigating the ever-evolving fraudulent activities prevalent in the financial services industry – unless they navigate through the new world of fraud analytics to help in this process.


 To know more about how our solutions helped the financial services company

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Advanced Analytics for a Leading Banking Sector: A Quantzig Success Study

What the Client Wanted

A leading banking sector client wanted to build an effective customer’s payment gateway and allow teams of users to quickly identify themes, trends, and look at individual customer activity.

The Outcome

The client utilized the power of the centralized database to test the effectiveness of the payment control environment and identified the weaknesses across the banking sector.


Global Banking Sector Overview

The largest banking sector corporations in the world have significantly enhanced their capital position over the years since the global crisis. While there is an enduring debate in some corners that banking sector players are still not satisfactorily capitalized, it is certain that the dangerously thin buffers of the pre-crisis era are gone. Additionally, most banking sector corporations have resolved the majority of the legacy conduct issues. Moreover, mitigation expenses are falling and Request Proposalwhile banking sector corporations continue to reshape their footprints, players are signaling that the associated restructuring costs will shortly peak.


Banking Sector Challenges

Macroeconomic risks: For banking sector players, uncertainties in the macroeconomic setting together with persistent and high levels of debt across corporate, sovereign, and consumer sectors lay the groundwork for asset bubbles to burst in the event of instability.

Technology risks: Failure to capitalize appropriately in secure, agile systems that improve digital and mobile banking can result in significant damage for players in the banking sector while compounding the menace for cyber-attacks.


About the Client

An American multinational financial services corporation and investment bank headquartered in the United States. 

Client’s Challenge

The company wanted to make use of financial crime and advanced analytics to better quantify and categorize their risk exposure, assess the effectiveness of their financial crime programs, and detect and deter criminal behavior. Additionally, the banking sector client wanted to build an Request Solution Demoeffective customer’s payment gateway and allow teams of users to quickly identify themes, trends, and look at individual customer activity.


Summary of our advanced analytics engagement

To gain in-depth insights into our advanced analytics solutions for banking sector players

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Business Impact

With the help of Quantzig’s advanced analytics, the banking sector client optimized their database for certain predefined searches by the customer, by value, and by country. The client also understood the flows down specific corridors and in certain currencies. Furthermore, the client gained a deeper understanding of their customer activity across the world with the help of Quantzig’s advanced analytics. This helped them utilize the power of the centralized database to test the effectiveness of the payment control environment and identify any weaknesses across the industry.

Advanced Analytics Solution Insights

Quantzig’s advanced analytics helps banking sector clients make improvements out of almost all their activities; thereby, enhancing the traditional P&L levers. Advanced analytics also directly improves the demand capacity management of a company by allowing real-time insights into the demand/capacity curve. Additionally, as advanced analytics eliminate problems from the supply chain, banking sector customers can enjoy more reliable and consistent delivery times and service quality.


To know more about how advanced analytics helped the banking sector client

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Customer Analytics Engagement: Empowering a Leading Internet Banking Services Provider to Enhance Service Efficiency

What the Client Wanted

Identify drivers of customer churn and build a churn propensity model to retain potential customers and enhance service efficiency.

The Outcome

With the help of Quantzig’s customer analytics engagement, the internet banking services provider was able to analyze and predict complex customer behavior. Also, the banking analytics solution helped them improve every aspect of their business by developing new and proactive business models.

Summary of the Internet Banking Services Industry

In today’s fast-paced business milieu, on-demand internet banking solutions have become a necessity for a better lifestyle. That is what an internet banking services firm helps ensure. It offers complete control over the funds in your bank account. In fact, many organizations and individuals are now bidding-adieu to long queues and are opting for internet banking solutions. Internet banking has made it possible for the customers to access banking services at their fingertips.

Though the scope of internet banking is growing on a daily basis, customers tend to get apprehensive when it comes to data security- mainly because security breaches pose a major challenge for internet banking services providers. It is essential for banking service providers to employRequest Proposal robust security measures and encryption mechanisms to prevent the loss of customer data. Also, there are other major challenges that banks will have to reconcile in order to succeed, including transaction difficulties, technical issues, and traditional banking preferences.  

Industry Challenges

  • The issues arising due to technical glitches: Since internet banking service providers rely heavily on online platforms, a minor bug or a system crash could lead to substantial losses. This makes it necessary for internet banking service providers to ensure the smooth operation of their online platforms as the loss of data and funds due to a technical glitch may at times be irreplaceable.
  • Difficulties in online transactions: Depositing or withdrawing money from internet banking platforms can be more time consuming and difficult when compared with the traditional banking system. This is mainly because internet banking service providers often have significantly fewer ATM’s than their traditional counterparts, making it a difficult and time-consuming process.

About the Client

A leading banking services firm.

Client’s Challenge

To identify the key performance metrics, the client – a leading internet banking services firm  – approached Quantzig to leverage customer analytics and gain insights into customers’ behavior. The client wanted to reduce churn and focus on developing a churn propensity model with the help of our banking analytics solution. Furthermore, the client wanted to leverage banking analytics to devise effective churn reduction strategies as a part of their business plan.


Summary of our customer analytics engagement

Internet Banking

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Business Impact

With the help of Quantzig’s customer analytics solution, the internet banking services client was able to span the entire journey of their customers and identify multiple opportunities to drive the top line. The internet banking analytics solution helped the firm to decrease churn rate by 25-30% by using key intervention at the appropriate time. Additionally, our team seamlessly integrated data across several marketing channels that helped drive business value.

Banking Analytics Solution Insights

Quantzig’s banking analytics solution helps banking firms to accurately predict customer behavior and build churn reduction models to drive growth. Moreover, by establishing banking analytics as a factual business discipline, banking service companies can grasp the massive potential, which would otherwise be an uphill task.


To know more about how our banking analytics solution helped the banking services provider

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A BFSI Sector Client Makes Better Future Investment Decisions Based on Simulated Scenarios with The Help of Quantzig’s Marketing Mix Optimization

What the Client Wanted

Make better data-driven decisions to capitalize on the returns from their traditional and digital marketing activities.

The Outcome

Performed a campaign analysis of individual campaigns to understand the incremental sales and ROI generated at a granular level, which included debit and credit cards, shopping discounts home loans, and cashbacks.

Summary of the Global BFSI Sector

Today, banks are facing irreversible and rapid changes in technology, customer behavior, and regulations. The net effect is that the BFSI sector’s current shape and operating models are no longer sustainable. The combined influence of these three drivers of industry transformation – technology, regulation, and customers – is increased by the fact that they are often closely interlinked. For instance, technological change creates new categories of customer utility, which, in turn, fuels further technological investments. Likewise, regulatory changes prompt both structural and service modernizations, which together change the nature of the activities that need regulating. Request ProposalAnd all the while, ever-changing expectations, and attitudes are redefining the reality and perceptions of the BFSI sector’s role and purpose in society.

Industry Challenges

  • Technology: Today, latest technologies can bring about complexities and vulnerabilities that lead to adverse outcomes such as new fraud risks, service disruptions, and breaches of privacy. Moreover, generational shifts in technology can alter the cost structure of the BFSI sector, to the point where what was once a barrier to new entrants suddenly becomes a major driver for growth.
  • Regulators and regulations: The BFSI sector’s policy and regulatory community are expected to face its own challenges and struggle for relevance. The starting point here is a regulatory model that is based on the regulations of a well-defined set of organizations and an obsession with ensuring that those institutions are not ‘too big to fail’.

About the Client

A leading BFSI sector major with a presence in over 10 countries. 

Client’s Challenge

To maximize the returns from their traditional and digital marketing activities, the client – a major in the BFSI sector based of the US – approached Quantzig to perform a marketing mix optimization. There was a significant lag between effort and evaluation on marketing ROI assessment due to the manual tracking of marketing spends. As a result, the client wanted to devise an effective marketing strategy and plan financials with better certainty to achieve their revenue goals.


Engagement Summary
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Business Impact

With the help of Quantzig’s marketing mix optimization solution, the client was able to view data in a real-time solution dashboard. This dashboard was useful for providing the executive management with a powerful decision support system. They also generated a cost per point metrics for individual media types to analyze the efficiency and compare with the ROI. This helped the client to make better future investment decisions based on the simulated scenarios.

Marketing Mix Optimization Solution Insights

Quantzig’s marketing mix optimization solutions assist firms in the global BFSI sector to gain insight into the contribution of brand equity against advertising on sales and the ROI generated from individual media types. Firms can also gain insights into the comparative ROI across media types based on cutting-edge regression methods for each product and service on promotion, including banking products and loans.


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Retail analytics

Top Challenges Hindering the Growth of the Online Banking Sector

The emergence of online banking has made offering banking services that much more comfortable. It has provided speed and convenience to the customers. Long gone are those days where customers had to drive to the banks and stay in the queue just to check their account balance or make deposits. Today, the same work can be done in the comfort of their home with just a few clicks. It comes as no surprise that  51% of US adults participate in online banking. Although online banking simplifies trading and provides convenience to both banks and the consumers, there are some distinct challenges and issues in the online banking sector. The problems can range from technical factors to habitual factors. Banks aspiring to drive the adoption rates of online banking should be well aware of suchFree demo issues.

Challenges in the online banking sector

Traditional banking habits

As mentioned earlier, 51% of US adults participate in online banking, however, on the hindsight, 49% of them still don’t. A majority of such people are susceptible to change and are well versed in traditional banking. Such aversion to change is usually due to lack of trust in the online system or the inability to operate online portals. As a result, banks are struggling to convince people to adopt online banking. In this case, banks can simply demonstrate the benefits of online banking and drawbacks of traditional banking to their customers.

Security and fraud instances

Security and protection against fraud and hacking are one of the most significant challenges for banks promoting online banking. In traditional banking, robbers would have to break into the bank to steal money from customers. However, skilled hackers can crack banks security measures to get customers detail and illicitly transfer money. For instance, almost 130 million British pounds were stolen from online bank accounts in 2015 through fraud. Additionally, the expansion of e-commerce provides an opportunity for fraudsters to misuse payment networks and steal sensitive information.

Cross-border transactions

One of the critical success factors of online banking is the implementation of the cross-border transaction as they play a vital role in the global trade. However, historically, cross-border payments have been slow, inefficient, and expensive. This is because most of the banks still use traditional infrastructure including national banking infrastructure which results in non-uniform development and software platforms that complicate cross-border transaction. New technologies including blockchain have been promising in overcoming such drawbacks to facilitate smooth cross-border transactions.

Technical issues

Banks are heavily reliant on online platforms to perform operational task including cash transfers, transaction recording, and information storing. A single system crash or a bug in their code can cause millions of dollars in losses or can even cause the bank to shut down its operations temporarily. Similarly, customers can lose trust in online banking when it’s not functional for that time. So banks face challenges in not only running their online platforms smoothly but also look towards their mobile apps.

Multi-currency and payment methods

The rise of global e-commerce has posed new problems in the online banking sector, that of using multiple currencies and payment methods. Consumers around the world use various payment methods including credit card, debit card, Paypal, bank transfers, e-wallets, mobile payments, and Sofortbanking. Merchants accept payments through such means and in different currencies. However, they face difficulty dealing with multi-currency, cross-border transaction, bank accounts, business entities, and regulatory hurdles. Such problems can usually be solved by selecting a payment service provider who can provide effective and immediate solutions to these problems.

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