As we now operate in an environment which continuously changes every single day, it has become crucial to be ahead of the curve or being left behind says, Vadim Kulik, The deputy President and Chairman, VTB Bank Management Board. As the 2020 was a challenging year to every industry, it was difficult to predict the future and what came with it. Banks which did not adapt technology instantly lost their competitive edge. And in 2021, we can see the competition stakes raising even more.
As we see the banks all over the world, including Russia, are moving away from being the traditionally defined positions, to tech companies. This might not be the strategy of every bank, but it certainly is showing how far the industry has revolutionized and the direction to which it is heading in the future.
A completion, Covid-29 pandemic that intensified the Russian banking sector was the technological innovations, as it became a battleground. There has been a significant development, for the past 20 years with the global practices and it quick adoption of the upcoming techs. This initiative has certainly been driven by the customers and their increased urge of using their smartphones for every activity and the internet, to which the IT ( information technology ) systems are getting adapted to in an increased digital world. As it is impossible to truly determine when we actually will be post –Covid, so the banks must not be looking this as a solution for everything. The speed of the technological development has increased, and this will continue swiftly throughout 2021. A number of strong technological trends developing in the financial market will form the digital-transformation strategies of the banks in Russia and across the world.
Open banking is changing the game, since it is has the potential to transform the rules of finances and transactions. In 2021, it is expected to have a steady shift of focus from meeting the regulatory supplies to sharpening the ability to utilize existing tools for profitable gains, finding new associates and optimizing these tools to meet the needs. At VTB, importance of developing the API (application programming interface) technology that fast-tracks the outline of new products and services within the bank, as well as abridging and automating the connections of partners from various segments, including insurance and retail, to VTB services, has been thoroughly recognized. Vadim shared that, in the year of 2020 they were able to successfully launch their first comprehensive savings-management service for users of Yandex, Russia’s leading technology company, with clients being able to access a range of premium-quality investment and savings products. This was just an example of how the banks could utilize the power of tech and open banking systems to improve the experience for the customers across many services.
Next up is the embedded finance which will become the key in 2021 as banks look forward in providing financial services on the customer’s terms at any time and any place. By using these embedded-finance tools, customers can incorporate payments, debit cards, loans, insurance and even investment tools into almost any user experience.
To conclude, Vadim said that now, in 2021, we must all move another step forward, take this dexterity and combine it with digital transformation and revolution. By doing this, we will truly modify the banking’s look, for years to come.
