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Why Realtime Messaging Benefits Retail Banking

31 Aug 16

“To be truly digital, banks must pair an emphasis on customer-facing capabilities with investment in the technical, architectural, analytic and organizational foundations that enable participation in the financial services ecosystem.” Gartner, Hype Cycle for Digital Banking Transformation, 2015

Consumers are adopting mobile retail banking at enormous rates – they want control over their finances and they also want the ability to bank wherever they are and whenever they want to.

Traditional banks are facing huge competition from challenger banks that offer high quality online experiences and are not hindered by legacy systems. Moreover, banks in general need to differentiate to remain competitive in a highly saturated market and look to the future that is increasingly digital. That requires a mobile app that delivers a great user experience over the internet.

To overcome these challenges, realtime messaging can help. Here are three use cases for realtime messaging and an example of a retail bank that has benefited from a realtime messaging solution.

Digital Payments

Retail banks need to upgrade their systems to ensure a faster and more convenient service. Drivers of this upgrade – mobile peer-to-peer (P2P) realtime payments, consumers moving banks for the promise of faster and more convenient electronic payment services, ACH non-integration, proposed US Federal Reserve regulation on realtime payments, growth in new realtime payment systems and PSD2 regulation within EU.

The result? Data shows that banks could be poised to lose 43% of retail payment revenue streams by 2020 if they don’t act and make themselves more appealing to both merchants and customers.

Banks must invest in immediate payments services to compete. Data-efficient realtime messaging is needed to deliver reliable efficient payments, and also give feedback at each step of payment process.

Realtime messaging from Push Technology delivers the performance needed to serve customers demand. By integrating with existing systems, Push Technology extends the messaging from internal systems over the internet to web and mobile consumer and employee apps guaranteeing performance.

Fintech ‘Platformification’ of Banking

It’s generally agreed that Fintech firms will have a significant impact on the future of retail banking because banks are more constrained by legacy systems and the inability to recruit technical expertise, stifling innovation and agility

But Fintech firms lack the customer base of the banking industry and banking firms have the advantages of stability, trust, experience navigating regulations and compliance requirements, and access to significant capital.

Digital transformation is the foundation of a new banking platform. Banks need simple, realtime, reliable interfaces to offer developers to innovate. Data-efficient realtime messaging must be the backbone of financial data exchange and the consumer experience.

Overcome Legacy IT Restrictions

Unfortunately, long-standing financial institutions are constrained by legacy backend systems that were not designed for today’s digital economy. Often reliant on enterprise messaging solutions that ably served internal integration needs for two decades, IT leaders are now unable to effectively deliver cloud and mobile integration that users of today expect.

This in turn slows innovation that the banking sector most certainly needs, and could affect regulatory compliance as realtime services are mandated. Push Technology has helped several leading banks introduce a Reactive Data Layer to their existing integration architecture that not only delivers a platform for future innovation, but also extends the life and utility of previous investments.

Consorsbank Improved App Performance with Push Technology

When German digital retail bank, Consorsbank, a BNP Paribas owned subsidiary, needed to enable its current account customers the ability to trade via the mobile app in a scalable and high performance way, they turned to Push Technology. Challenges included: scaling its mobile app to meet customer demand, simplifying development of its mobile app and gaining a single communication solution that isolates backend and frontend systems.

The solution?  Push Technology’s enterprise-grade realtime messaging solution. For more including all benefits check out the: Consorsbank Case Study in the Information Center.

 


The Diffusion Intelligent Data Platform manages, optimizes, and integrates data among devices, systems, and applications. Push Technology pioneered and is the sole provider of real-time delta-data streaming™ technology that powers mission-critical business applications worldwide. Leading brands use Push Technology to fuel revenue growth, customer engagement, and business operations. The products, Diffusion® and Diffusion Cloud™, are available on-premise, in-the-cloud, or in a hybrid configuration, to fit the specific business and infrastructure requirements of the applications operating in today’s mobile obsessed, everything connected world. Learn how Push Technology can reduce infrastructure costs, and increase speed, efficiency, and reliability, of your web, mobile, and IoT application.

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