Team Leader Sara Mohall provides her perspective on the biggest challenges for banks in the Nordics and perspectives on how to tackle them effectively.
What's next for Banking
Key challenges for Banks in 2024
Retail banks are facing a unique set of challenges that demand innovative and forward-thinking solutions. Sara sat down with the Banking industry team at Lynxeye and outlined what we see as the biggest challenges for banks in the Nordics and perspectives on how to tackle them effectively.
Preventing financial fraud
Financial fraud remains a critical threat, with increasingly sophisticated methods being deployed. Bank customers and the Swedish government alike are expecting banks to step up to prevent fraud and actively protect and support their customers. There is a concern that the need for tighter security and controls will negatively impact the customer experience.
The Lynxeye perspective
Banks should not let security risks stifle innovation. There are numerous services that can be offered to customers without significantly increasing fraud risk.
These include:
- Informative services: Providing statistics, analyses, and practical guides.
- Customer tools: Offering tools for everyday financial management, alerts, and reminders.
- Educational platforms: Creating forums for learning and networking.
Understanding what adds value to customers and ensuring these services do not expose accounts to external threats is crucial. By striking this balance, banks can innovate securely and effectively.
—Banks should not let security risks stifle innovation. There are numerous services that can be offered to customers without significantly increasing fraud risk.
Generative Artificial Intelligence: How, what, why?
Generative artificial intelligence holds massive potential, but banks must identify where the best value can be gained. Beyond cost and time savings, artificial intelligence should be used to generate further competitive advantage and enhance the customer experience. However, artificial intelligence in customer experience often falls short on hard KPIs and raises trust issues.
The Lynxeye perspective
A successful artificial intelligence strategy hinges on customer-centricity, foresight, and robust innovation management.
Banks should:
- Innovate for different horizons: Plan for both short-term gains and long-term, high-uncertainty scenarios.
- Focus on emerging needs: Start every innovation project with a clear understanding of evolving customer needs to improve success rates.
This approach will ensure that banks not only keep up with current trends but also anticipate and meet future demands.
—A successful artificial intelligence strategy hinges on customer-centricity, foresight, and robust innovation management.
Future customers’ expectations on digital bank platforms
Banks need to develop digital platforms that meet the high expectations of Gen Z and Gen Alpha whilst at the same time accommodate for older generations.
The Lynxeye perspective
For millennials, who reached adolescence in the era of mobile apps, bank-as-an-app came natural, and banks need to adopt to the expectations of Gen Z and Gen Alpha to attract and retain digitally native customers.
Banks should:
- Enhance digital platforms: Ensure they are not just user-friendly but also socially interactive and artificial intelligence empowered.
- Accommodate all generations: Design digital experiences that are accessible and beneficial for both young and aging populations.
By understanding and adapting to these evolving customer expectations, banks can position themselves as forward-thinking and customer-centric organisations.
Conclusion
The banking sector is facing challenges that require a balanced approach of innovation and security. At Lynxeye, we believe that by focusing on customer needs, embracing technological advancements, and fostering a culture of continuous improvement, banks can overcome these challenges and thrive in the future.
Sara Mohall, Team Leader
I am a passionate team leader, problem solver, and strategic thinker with over 15 years of experience in organizational leadership, project management, and digital transformation.
I’ve spent most of my career to date in London, working with global and local companies ranging from FTSE100 companies to SMEs and start-ups. I’ve led organizational change, employee engagement, creative and digital projects across a wide range of industries in B2B and B2C. M.Sc. in Business Administration and Strategy from Linköping University.
