Digital disruption is contributing vital role in reshaping the financial organisations’ futureand their working practices. Digital transformation can be observed at nearly every level of the banking industry at the present time. Emergence of new technologies in the banking industry have pressurised the players to develop and adopt new business models, which are responsive to the challenges and needs of the digitisation (Skinner). Most of the students are asking professionals to write my essay for me at cheap rates. Banking institutions are required to become responsive to the changing needs of the digital customers (credit customers). For this reason, such institutions are reinventing themselves constantly. One of such example is Credit Agricole Group, which is a network of mutual and co-operative local banks in France (Crédit Agricole Group). The group of bank is exemplary involved in the use of digital channels for helping the French farmers struggling to access long-term, flexible and reasonably priced credit. Digital transformation is one of the core strategic vision of the credit Agricole in order to drive a long-term consumer finance strategy. Therefore, in this paper are using the specific example of Credit Agricole, the Future of Digital Transformation in Banking is Discussed. The research paper tends to highlight how this banking group is enabling the digital transformation for facilitating the credit loans for their consumers.
2. Future of Banking (Digital Transformation)
In response to the interview, one of the project directors of Credit Agricole Group responded that it is all about digital now. According to him, by focusing on the ways digital tools are influencing the transfiguration of spaces and work methods in ever industry, banking institutions can easily take suggestions for how they should structure and frame the business practices in order to carry out these changes (Hanna). Online dissertation writing service can be helpful for strudents of Masters& PhD level. The future perspectives of the digital transformation require the banking institutions to make their IT departments being responsive to the environmental issues. The banking group is currently using several methods in order to show its contribution in connecting its information technology systems with the ecosystem requirements (Crédit Agricole Group).
3. Co-creation as a Core Strategy
Digital co-creation is identified as a vital strategy for the accomplishment of digital transformation in almost all business areas, fields, sectors and industries. Co-creation care. The act of combining all the business expertise and digital technologies together for the development of value (Hanna). Get assignment help online for the better results in academics. Engaging customers and members of the ecosystem is recognised as an important part of the strategy for shaping the business practices to respond towards an unknown future (Maedche, Brocke and Hevner). Credit Agricole group is also using co-creation for the acceleration of the cooperative into the digital era. The strategy has allowed the actual banking system in order to identify success factors, risks, and planning process.
3.1 Banking Apps Store
One of the greatest examples of such strategy application can be viewed from the creation of a mobile application store which is aimed to facilitate the co-creation of applications with the customers (Hanna).
The digital store has offered an opportunity to the application developers in getting closer with the financial industry’s customers. The developers permit the consumers to use the codes assigned to them through their mobile applications for retrieving the banking details securely (Credit Agricole Group). Buy thesis writing service UK in affordable price. It can be viewed that the application usage has ultimately eliminated the need to physically visit or use a computer system for accessing the banking information. The integrated platform of the application store initially contains 21 applications addressing for platforms of the banking group.By working jointly all the members in the group are able to develop applications mapping the uses and cases according to the clients need. It was not possible for the individual banks to create such a large set of applications for the moderately farsighted individuals (Hanna; Credit Agricole Group).
Besides the goal of client satisfaction, the strategy of co-creation for the digital transformation has been also employed by the Credit Agricole Group for the improvement of IT security management functions of the member banks. The group has recognised they should pursue disruptive innovation in order to responsive to the future demands as they believe that the real risk is to do nothing. In the mode of transformation, Credit Agricole Group has realised the importance of connecting online banking services with the physical presence. Online coursework help can save students to suffer low ranks. The Group has not undermined the importance of working with the customer face to face every day as this is the core of their business model however digital transformations are used for adding more value to the branches (Credit Agricole Group).
3.2 Use of Ripple Block Chain Money Transfer Technology
Another example of how the Credit Agricole Group is experimenting with the co-creation strategy is the use of ripple block chain to facilitate and accelerate the money transfer. Block chain is identified as highly remarkable future technology for reshaping the working of members in the business chain (Bheemaiah). Based on the distributed ledger and smart contract components, locked chain technology has allowed the business is to remove intermediaries from their supply chain. Block chain technology (Bitcoin, Ripple, Ethernet) have started positioning themselves as the destructive technologies within the finance industry with the start of current decade (Winkelhake). Hire research paper writer online at very reasonable price. The main aim behind adopting this technology is simplification of the money transfers with the foreign exchange company. The members of the group are integrated working for making the things convenient for the customers, specifically the ones living the Swiss border. For all those customers of the regional banks which arepositioned near the Swiss border and the Credit Agricole Next Bank (CANB) in Switzerland are offered an emergency for transferring their salaries paid in Swiss Francs directly into their French bank account within few minutes. This step has ultimately benefited the consumers from preventing themselves from the hectic delays (generally three days’ process). With the integration of banking services as well as digital technology of block chain, Credit Agricole Group has allowed the consumers to settle their transactions securely, transparently, as well as privately simply by using a mobile application. Relatively to the other modes of online money transfer, block chain-based money transfers also offer because benefits to the consumers by removing embedded costs. It can be analysed that currently the block chain technology based money transfer services is in the initial testing phase and is expected to be available for the use across the entire territory after six months of testing period (Olleros and Zhegu).
The introduction of new money transfer technology is targeted towards the business objectives of high-speed, low cost, reduced expenditure, reduced efforts, low risks, and improved life of the cross-border customers (Bheemaiah). On an important note, it is necessary to identify that in the traditional system of banking, the role of intermediaries is highly crucial, which consumes times and efforts for the completion of a simple money transfer transaction. However with the integration of block chain solution, it would be easier for the receivers and senders to perform transaction without any involvement of the intermediary, ultimately reducing the burden on the banking system. Block chain technology in the finance industry is identified as the value stream for the future business processes. It would make the identification of the senders and receivers as well as transaction details easier with a specific aim of reducing the rising financial theft, fraud, illegal money transfer, and money laundering activities (Bheemaiah).
3.3 Green Economy: Climate Finance
Additionally, the focus of the group towards the integration of finance and climate can be seen from the development and structuring of the world’s largest bond for France. In the year 2017, the first French so worrying the inbound of about 7 billion was launched with a 22-year maturity (Credit Agricole Group). This green bond is recognised as a representation of the France socially role responsible investment behaviour. The key objective behind the issuance of such bond is to raise funds for financing energy transition and climate change projects. The funding collected in such bonds is being used for encouraging the use of technology for the sustainable banking system, and sustainable social and environmental aspects. It is quite surprising to see that finance institutions have also started recognising the important role in directing their investments for funding those projects which are capable of replacing the use of sustainable foods and channels. For example, to reduce the carbon prints from the economy, renewables are recognised as the vital source of innovation. Credit Agricole Group synergy effects have allowed the users of its credit loans to make responsible investments in such sustainable initiatives (Credit Agricole Group).
Another example is the use of instant messaging encouraged in place of electronic mail, the employment of collaborative tools is made essential for the improvement of routine communications, use of internal social network, and the use of energy-efficient equipment and eco-design software applications (Marous). From these examples, it can be analysed that Agricole Group is transferring its technological infrastructure as a way to exhibit it is efforts for the energy transmission area. The use of technology is made to make effective integration of the financial services with the farming and agriculture promotion.
3.4 Sales Aid for the Insurance Application
Likewise, another measure highlighting the efforts of the group to show their pursuance of the digital from the futuristic approach, is related with how the technology is being offered to the consumers applying for insurance dealerships. Consumers applying for the finance, insurance and maintenance plan for their new MP3 Piaggio scooter are allowed to use the tablet for the application purpose (Credit Agricole Group). The use of tablet has allowed improving the advance and spontaneous experience of the customers by easing the accessibility and interfacing towards the broad range of insurance products and services. It can be analysed that is ultimately deciding the future of the banking system by changing the ways the customer applies for the products and services and by modifying the ways banks used to such customer needs (Credit Agricole Group).
Moreover, the future of banking from the lens of digital transformation can also be recognised from the Credit Agricole Group action to promote deployment of technical solutions and applications in the bank insurance sector. For this purpose, the group has been intensively investing in the start-ups focusing on the big data, connected devices, digital payment, cybersecurity in six strategic areas such as agriculture and agri-food, energy environment, housing, health, tourism and marine. Heavy capitalisation is programmed to make the regional banks to adopt digital transformation across all their activities (Credit Agricole Group). Additionally, for this reason regional banks are attempting to combine themselves as a single platform for facilitating the exchange between the customer and the banking sector. It would not be wrong in stating that future of banking is in the hands of how collaboratively as well as co-creatively different players in the banking sector functions for the formulation of communicative and undeniable business system (Credit Agricole Group).
It can be examined that the banking system which was primarily aimed to provide loans and finance to the approaching customers, in the current era of fast paced digitalisation has completely transformed itself. Stress is placed on eliminating borders, among the supply chain partners, among the customers, employees, as well as the society at the wider level. The banking system is shaping its future based on the proposition that the modern customer does not only require loans and credit from the banks but expects their banks to help them in management of their daily lives through their financial service banks. A modern customer is searching for simplicity, efficiency and flexibility along with the diversity of products and services (Credit Agricole Group).
3.5 Big data: Changing The Way to Collect, Process, Distribute and Use the Customer’s Data
One of the biggest examples to understand the changing future of the banking system through digital transformation is application of big data (Olleros and Zhegu; Talend). Credit Agricole Consumer Finance, while acting in capacity of a wholly owned subsidiary of the group has started using the digital channels for their data collection, processing, distribution and usage activities. The big data technology has been helping the company in collecting more than 10 TB of data deal, which is capable of being processed in less than one hour. Such a faster speed has ultimately help the group increasing the number of their project deliveries (7 to 8 projects per quarter). When on one side big data analytics has helped the Credit Agricole Group stating that consumer finance area, it will also help the company in gaining performance of an Internet users based on their clickstream patterns. The efficient use of data by the banking system as well as the customers is ultimately accelerate the online credit modelling and issuance processes (Talend).
Observations from the worldwide banking systems have highlighted the emerging trends of heavy banks investments in the big data and analytics technologies in the past few years. These trends have depicted a bright future for the finance industry since the banks are capitalising on a new wave of prediction, connectivity and data openness (Marous; Skinner). The role of human resource would be reduced when the technology is taking over responsibility for recording and managing the vast range of financial data for the millions of customers dispersed in different regions across the globe. In the future, it would become easier for the financial sector is to gather insights of their customer experiences without spending much time and cost on it. Banking and financial industry players have understood that the applications of big data are released their industry (Olleros and Zhegu). Big data can be used for tailoring products and services for meeting the ever-changing demands of individual customers beyond personalisation and customisation too. Data is essential component of the banking system since the real insights can help the banks in causing accurately with their risks, mainly in the provision and monitoring of the credit loans to different types of customers (Marous). It can be expected that in the future banks would ultimately use the artificial intelligence solutions for being responsive to the customers’ requirements as well as regulatory obedience.
Thus, from the examination of the practices of the Credit Agricole Group, it can be concluded that the future of banking is ultimately related with the complete option of the digital transformation. It can be perceived that in future, players in the banking system across the globe with come closer for the co-creation of value rather than working on individualistic approach and model. The current practices of using digital technologies such as big data analytics, block chain technology, online App Store, use of technological equipment (Tablets) for credit loans and finance, green investments, ultimately predicting the changed future of the banking system. Technology would help advancing the business activities as well as the relationship between the different supply chain members of the system. Credit Agricole Group is just an example to show the future of banking. However, banking institutions according to their individual strategic aims and objectives are modifying their use of digital transformation in order to stay competitive and to drive sustainable future institution. Hence, the summary of the key insights gathered from this research paper further indicates that the expectations of the customers as well as print institutions have rising with the arrival of new digital technologies. Customers have started expecting solutions are already activities from the banks, while the banking institutions have started realising the need to invest in diverse activities to show their contribution into larger level in the global ecosystem.