Navigating the Banking Industry: Credit Assessment, Customer Experience, and Ethical Dilemmas Unveiled

During an interview with Prisila, Correspondent at Asia Business Outlook Magazine, Imran discusses his perspectives on the essential skills and qualities that make a banker successful. He also explores effective measures to enhance digital banking services and elevate the overall customer experience.

Imran Kannuti, Spent 25+ years in the Middle East Banking & Insurance firms, Imran is passionate about Digital Transformation and Technology Innovations and aims to serve BFSI meeting their digital transformation objectives enabling digital disruption, leveraging innovative technologies. Currently heading Digital Transformation for a reputed   banking organization in UAE.

Industry leaders assess the creditworthiness of individuals and businesses when processing loan applications.

In the process of evaluating loan applications, financial institutions deal specifically with two types of customers besides SME’s, HNW and others: retail customers and corporate customers. The treatment and analysis of creditworthiness vary for these customer categories, as well as between secured and unsecured loans.

For secured loans, banks assess the customer's ability to provide collateral as a guarantee in case of default. On the other hand, unsecured loans require a more thorough scrutiny of the customer's creditworthiness since there is no collateral to fall back on.

In the traditional approach, banks consider both internal and external factors to assess a customer's creditworthiness. Internal factors include employment status, salary, length of employment, and credit history with other banks, number of credit cards, income, and debt-burden ratio (DBR). This information is used to generate a credit report, which includes a credit score from credit bureau departments. A good credit score, along with a positive payment history and no payment backlogs, increases the likelihood of loan approval.

However, the traditional process has its challenges, being time-consuming and document-heavy. In the digital era, financial institutions have adopted digital lending modules and artificial intelligence (AI) solutions to streamline and expedite the creditworthiness process. The use of AI and digital platforms has significantly reduced loan approval time, with decisions often made within minutes of submitting the customer's national ID. AI algorithms securely analyze the customer's credit history within the country, allowing for quick assessments and approvals.

As the world embraces digital transformation, the traditional creditworthiness approach is gradually giving way to AI-enabled digital solutions. Banks and financial institutions are leaning towards these advanced methods to save time, improve customer experience, and showcase their technological prowess/advancement.

The creditworthiness assessment for retail and corporate customers has evolved from traditional methods, relying on AI-powered digital solutions, leading to quicker loan approvals and a more seamless customer experience in today's digital-first world.

The critical skills and qualities that a successful banker should possess

In the digital-first world, a successful banker must adapt to new perspectives. To sustain in the market, key traits are essential: customer focus, financial and technical skills, analytics, and data management. Traditional banking methods have given way to AI domination, leading to job risks. To be a proficient banker, one must possess business knowledge, technical expertise, and a deep understanding of customer expectations, as these have shifted dramatically towards digital preferences. Adapting to changing customer needs while leveraging communication skills is crucial for excelling in the banking industry. Being customer-centric, analytically adept, and technologically savvy are vital features that define a successful banker in this dynamic era.

"Enhancing the customer experience and embracing digital transformation are imperative for financial institutions to stay competitive in the market."

Most effective ways to enhance digital banking services and improve the customer experience

Enhancing customer experience and embracing digital transformation are imperative for financial institutions to stay competitive in the market and considered as source of survival. To achieve this, banks must continuously monitor evolving customer needs and offer technological advancements to cater to those needs securely.

By leveraging new technologies, such as AI, RPA, Data Analytics and chat bots, financial institutions can create a digitally savvy banking environment that appeals to customers. To build customer confidence, data security must be prioritized when customers share their information.

Regularly seeking and responding to customer feedback is crucial. Encouraging customers to use digital channels and technologies while providing updates on their feedback fosters a sense of engagement and transparency.

Innovation is key, with financial institutions needing to introduce easily accessible and understandable products to the market. By adhering to these principles, banks can ensure a competitive edge and deliver exceptional customer service in today's digital age harnessing the digital advancement.

Leverage technology and digital tools to enhance the banking experience for customers

In today's digitally driven world, customers play a crucial role in staying relevant and informed. It is not solely the responsibility of financial institutions to provide cutting-edge solutions. Customers, too, must take the initiative to upgrade themselves and be digitally educated. While not everyone needs to be tech-savvy, most individuals own smartphones and have basic internet knowledge. Therefore, they should keep an eye on market trends and understand the latest technology offerings. This includes exploring new communication channels like metaverse and virtual reality, in addition to traditional websites and mobile apps. By doing so, customers can fully leverage the advancements introduced by financial institutions and make the most of modern technologies in the market.

Latest technology advancements and industry trends in the digital banking space.

The responsibility of digital transformation teams in banks is to monitor market trends and new technologies, engaging with fintech companies to understand upcoming products. They must thoroughly grasp these technologies and effectively educate management and business stakeholders, highlighting their benefits and drawbacks. Constant learning and knowledge exchange between the digital team and fintech industry are vital for ongoing technological advancements in banking. It ensures a seamless integration of technology flavors, fostering continuous growth and innovation within the organization.

The importance of seamless integration with other financial services and platforms in the digital brokering industry.

Seamless integration in today's digital landscape demands the adoption of APIs, an emerging technology embraced worldwide. APIs are essential for connecting multiple systems effortlessly, as digital applications heavily rely on data transmission. They serve as channels for transmitting digital data, ensuring efficient communication between systems. Various API models are available, and when combined with cloud technology and advanced data security features, they facilitate smooth application implementation and integration. In summary, APIs play a pivotal role in achieving seamless connectivity and enhancing the performance of digital applications across diverse domains.

Conclusion: Distinguishing between digital transformation and business transformation, the latter concludes after implementing changes, while the former remains an ongoing process due to the continuous evolution of technology. As a result, digital transformation necessitates a continuous vision and execution in any organization.