Can Pega CDH give an edge over Fintech firms?

Decades-old banks are facing big challenges as innovative technologies shake things up! This is evident with the rapid growth of fintech firms and their global popularity. Fintech firms pose a great challenge for traditional banks, compelling them to adapt and innovate, to stay competitive in the industry.

Fintech, or financial technology, utilizes advanced technologies to automate and enhance financial services for businesses and customers. The result: products and services that meet the ever-changing demands of modern customers.

What makes fintech a preferred choice for customers? Fintech firms focus on customer-centricity. They offer real-time services, easy access, enhanced security, and improved user experience. This makes managing financial needs easy and convenient for customers. ?

Where do established traditional banks lag? Most of the traditional banks, which are even centuries old, rely on their legacy systems for financial services. This makes their business process slow. Moreover, they are not able to meet the ever-evolving demands of customers in real time. So, to stay relevant and competitive in the industry, banks need to embrace digital transformation and enhance customer experience.

We have a robust platform to achieve this… Pega Customer Decision Hub (Pega CDH) - a powerful weapon for banks to enhance customers in their digital transformation!

Pega CDH Competing with Fintech Capabilities

Here, let us explore the benefits of fintech that make it shine in the financial industry and also in parallel delve into how Pega CDH can offer similar if not better alternatives to traditional banks.

Personalized Services:

Fintech innovators harness the power of AI and automation to deliver personalized user experiences, leading to better customer retention rates. However, Pega CDH has a secret weapon called Next-Best-Action. This cutting-edge tool quickly adapts to changing customer sentiment and market conditions, thereby empowering banks to engage customers empathetically. The result: a significant improvement in customer retention rate.

Pega CDH helps banks identify customers at risk of churn promptly, provide personalized retention offers, and enhance overall customer satisfaction.

Optimized Business Processes:

Another advantage of fintech firms is their use of innovative technology to streamline financial transactions and operations. This automation results in enhanced efficiency and productivity. Optimizing business processes is crucial for any business. Because an inefficient business process can result in poor customer experience and an increased customer churn rate. For instance, a bank that depends on manual paperwork for loan applications can frustrate a customer with longer processing times and delays in approval.

So, to stay competitive, traditional banks can optimize their business process by leveraging the power of technology. And, Pega CDH can be the game changer here too! Leveraging Pega’s state-of-the-art capabilities such as intelligent automation, real-time decisions, and personalized customer engagement, banks can enhance their operational efficiency, streamline financial transactions, and improve productivity. Thanks to the advanced technologies and powerful data-driven insights leveraged by Pega CDH!

Customer Base:

Established banks have a significantly larger customer base when compared to fintech start-ups. This allows banks to experiment with new applications on a larger scale. Integrating Pega CDH can enable banks to gather extensive feedback, and analyze performance based on real-world data. Like icing on the cake, Pega CDH has an advanced feature called Impact Analyzer, which monitors the effectiveness of the current strategies and pinpoints areas that need improvement. These innovative features give banks a competitive edge in refining their strategy and offer effectively.?

Agility and Time-to-Market:

Fintechs are known for their agility and speed in bringing innovative solutions to market. Their innovative technology enables them to launch new products and versions quickly, gather market feedback, and enhance their offerings based on short feedback cycles. So, to compete with fintech, banks must be nimble. ?

No worries! Pega is a low-code platform that enables quick and easy deployment of applications . Moreover, Pega has solutions to wrap your legacy systems in an agile technology layer. The highlight: you can deploy new features in weeks without risking your legacy investments. By leveraging Pega CDH, banks can innovate rapidly, deploy new strategies instantly, launch new services efficiently, and respond quickly to market changes.

Conclusion

Embracing digital transformation and enhancing customer experience can provide traditional banks a competitive advantage over fintech firms. Banks can easily achieve this by leveraging the power of Pega. This low-code platform can be deployed easily and can integrate fast with the legacy systems used by banks. Moreover, Pega CDH allows billions of real-time transactions through multiple channels . This helps banks to ensure seamless interactions and personalized experiences that cater to individual needs. Talk to our Pega CDH experts at Instellars to learn how it can empower your banks to compete with Fintech firms!