US banks Q3 results shine light on financial services innovation
New York, 10.12.2018: US banks will kick off their third quarter earnings today, with Wells Fargo, JP Morgan, and Citibank all reporting results this morning. Amidst a mixed set of forecasted results, Citibank has started off the Q3 US bank season reporting a stock rise of more than 2%, earnings of $1.73 per share, a net interest margin at 22.7 percent, and a revenue of $18.389 billion.
This is off the back of Citibank’s announcement earlier this year that they are laying the foundation to have a national digital bank, as the financial services leader has been working on a platform to offer a larger pool of online and mobile banking services to US retail customers Following a successful recovery from the big financial crisis, Citibank has largely concentrated on enhancing revenues and improving the consumer banking division – and are amongst other key players who know that innovation is an increasingly essential component.
Many traditional institutions are still in a tug of war with fintechs and digital challenger banks. To respond, incumbent banks are investing in next-generation technologies, with the global banking industry spending $519 billion on IT this year, up 4.1 percent year on year, from $499 billion in 2017 according to Gartner. These banks can continue to thrive in the competitive landscape by staying ahead of new digital developments in the sector.
For example, ChatBot technology is becoming particularly popular in banking for customer service, by cutting down handling times and accelerating payments processing, enabling better customer interaction by eliminating errors and increasing efficiency.
Tony Antenucci, VP of Banking, Financial Services and Insurance for Teleperformance Digital Integrated Business Services comments: “The way customers interact with their bank in the US is changing. Despite branches closing down and more people switching to online banking, customers still want to be able to speak to someone when dealing with their intricate banking needs, such as mortgage applications. Keeping up with new technology is vital to keep the processes behind these operations running efficiently, and maintaining a relationship between banks and their customers. AI tools can help by augmenting back end processes, which in turn, vastly improves customer experience.
Tony continues: Consumers are constantly searching for the best deals to invest and manage their finances, and banks can help them achieve this by deploying robotics, automation and AI – to speed up services such as application processes. These new processes will help traditional banks retain and expand market share while delivering the best possible customer experience.”