5 Key Insights for Navigating the Current Landscape of Core Banking

[webfact]

 

by Gregers Møller

 

In the last few years, the global banking industry has been rocked on all sides by evolving market and consumer demands, shifting regulatory requirements, and the rise of new and innovative technology. These conditions are poised to change the shape of modern banking for the foreseeable future. Rather than being linear, transaction-based service providers, contemporary banks are under pressure to transform into complex, dynamic, and flexible entities that can adapt swiftly to an unpredictable financial environment.

 

Banks today are facing a period of reckoning that requires them to reevaluate their current business models and prepare for an increasingly uncertain future. Many banks are specifically exploring technological upgrades in the interest of building a more agile, higher-performing core banking system. These upscaled systems will enable them to serve greater volumes of customers more efficiently, through more channels, and in a more personalized manner.

 

To pull off a successful technological transformation, however, banks must first understand the banking industry’s present condition, as well as the many challenges facing the sector as a whole. The following insights, in particular, are essential for banks to know about the modern core banking landscape:

 

Full story: https://scandasia.com/5-key-insights-for-navigating-the-current-landscape-of-core-banking/

 

-- © Copyright ScandAsia 2022-06-10

 

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[xylophone]

2 hours ago, webfact said:

Rather than being linear, transaction-based service providers, contemporary banks are under pressure to transform into complex, dynamic, and flexible entities that can adapt swiftly to an unpredictable financial environment

Nice words, and IMO and experience here in Thailand, the banks are a long way off being able to do anything like this, in fact they would be in the equivalent of the "dark ages".

 

Some examples: –

– I cannot set up a direct debit/credit from my Bangkok Bank to my Aetna health insurance company, because according to Aetna, "the systems won't talk to each other".

 

– I went to Bangkok Bank yesterday to set up a credit card and after filling in all of the forms which took over half an hour, the woman then suggested I would have to wait two months before I got the card!

 

– When I was with SCB, I went into the banking chamber to enquire after something on my account, and the personal banker (behind a desk) asked me to put in my password etc, so I went round to her side of the desk, which she allowed me to do, and pulled up another seat whilst I did this, however things weren't working as they should have done. So after about five minutes the woman said she had to go to the toilet and left me sitting behind her desk (yes behind her desk in the banking chamber) messing around with my account. About 15 minutes went by and I she didn't return, so I beckoned to another staff member in the banking chamber to ask what had happened to the woman, and she promptly replied that she had gone to lunch!!!! So I was left sitting in the banking chamber, behind a desk, with no explanation or customer service whatsoever. It's no wonder that I left that bank.

 

– When I need to get my banking statements for proof of funds in my Bangkok Bank account (for immigration purposes), they have to send to head office to get them, which means a wait of about 5 to 7 days, and last time it was even longer.

 

– Yesterday a staff member at Bangkok Bank kept pestering me to buy insurance, and I told her that I had enough funds in my bank here and in NZ to be able to cover me and my daughter, and anyway I had health insurance here, and my daughter would inherit my NZ funds if I should depart this mortal coil. So I didn't need any insurance, but she was persistent, and by that I mean PERSISTENT and eventually she said, "well if you don't need it, then if you buy it, it will help me" (meaning commission I would think) and I told her that I was Chief Manager of a major bank in NZ, and I knew what she was doing and that I didn't like it, and no way was I going to buy any insurance from her.

 

I left SCB because of the episode I mentioned above, and there are times when I consider leaving Bangkok Bank, however I have my overseas pensions paid into this bank and I don't want to go through all of that rigmarole again, but on the positive side, the floor manager is a nice guy and has helped me on occasion, so that's why I stay, but there are times when I am close to leaving that bank.

[StayinThailand2much]

20 minutes ago, xylophone said:

Nice words, and IMO and experience here in Thailand, the banks are a long way off being able to do anything like this, in fact they would be in the equivalent of the "dark ages".

True. Here in Thailand, my banking is limited to what was common in the 1980s and earlier, i.e. savings accounts and a debit card. And some things are indeed from the "dark ages", e.g. not being able to use a simple bank form to transfer X amount from my bank account to my landlady's bank account, as she requires a 'deposit slip' with a bank chop, which I cannot get by transferring from an ATM or online. Withdrawing money from bank X, then having to go during banking hours to bank Y, waiting hours to make a deposit (for the deposit slip), feels like doing bank business in the 18th century...

Edited June 10, 2022 by StayinThailand2much

[DFPhuket]

I recently renewed my passport. Getting the new passport number and details into my account required 10 printed and signed pages and roughly an hour at SCB.

 

I went to Bangkok Bank to do the same thing. After going to the nearest branch I was told I needed to go to the branch where I opened the account. So I drove across town and spent another hour with 10 more signed documents. 

 

Total time required to update my passport number at two banks - 2 1/2 hours. 

[The Hammer2021]

3 hours ago, xylophone said:

Nice words, and IMO and experience here in Thailand, the banks are a long way off being able to do anything like this, in fact they would be in the equivalent of the "dark ages".

 

Some examples: –

– I cannot set up a direct debit/credit from my Bangkok Bank to my Aetna health insurance company, because according to Aetna, "the systems won't talk to each other".

 

– I went to Bangkok Bank yesterday to set up a credit card and after filling in all of the forms which took over half an hour, the woman then suggested I would have to wait two months before I got the card!

 

– When I was with SCB, I went into the banking chamber to enquire after something on my account, and the personal banker (behind a desk) asked me to put in my password etc, so I went round to her side of the desk, which she allowed me to do, and pulled up another seat whilst I did this, however things weren't working as they should have done. So after about five minutes the woman said she had to go to the toilet and left me sitting behind her desk (yes behind her desk in the banking chamber) messing around with my account. About 15 minutes went by and I she didn't return, so I beckoned to another staff member in the banking chamber to ask what had happened to the woman, and she promptly replied that she had gone to lunch!!!! So I was left sitting in the banking chamber, behind a desk, with no explanation or customer service whatsoever. It's no wonder that I left that bank.

 

– When I need to get my banking statements for proof of funds in my Bangkok Bank account (for immigration purposes), they have to send to head office to get them, which means a wait of about 5 to 7 days, and last time it was even longer.

 

– Yesterday a staff member at Bangkok Bank kept pestering me to buy insurance, and I told her that I had enough funds in my bank here and in NZ to be able to cover me and my daughter, and anyway I had health insurance here, and my daughter would inherit my NZ funds if I should depart this mortal coil. So I didn't need any insurance, but she was persistent, and by that I mean PERSISTENT and eventually she said, "well if you don't need it, then if you buy it, it will help me" (meaning commission I would think) and I told her that I was Chief Manager of a major bank in NZ, and I knew what she was doing and that I didn't like it, and no way was I going to buy any insurance from her.

 

I left SCB because of the episode I mentioned above, and there are times when I consider leaving Bangkok Bank, however I have my overseas pensions paid into this bank and I don't want to go through all of that rigmarole again, but on the positive side, the floor manager is a nice guy and has helped me on occasion, so that's why I stay, but there are times when I am close to leaving that bank.

I have always had positive experiences with my Thai  'yellow bank' and in general  get far better service  than some British  banks.

[rickudon]

Everything mentioned in the article i can do online with my UK banks from Thailand, with the exception of getting new bankcards sent internationally. Thai banks - lots of counter staff, who are quite helpful, but apart from paying in money, hopelessly bureaucratic. Hours or days to open an account, no credit card, and getting any bank statement /letter takes ages. Even need to photocopy passport for every withdrawal !

[Onerak]

The two banks (Bangkok Bank and Krung Thai bank), I never had any issue so far. I can do everything online. Their ATM cards work in the USA at least (have not tried in Europe so I have no knowledge). The only issue I have now is for some transactions, they insist on having a SMS verification (for security reason) and the Thai phone number they have is now defunct. They won't accept my USA phone no. Yes, they have lots of paper works to be done for simple thing like a adding a new phone number. Never needed any credit card from Thai banks, so cannot say anything about their credit cards. I think I have enough US credit cards (more than 100) and access to credit (More than one US million) that I really don't need another credit card from a different country. My GF uses her phone for most payments online using her phone now even for few bahts in 7/11 and to meat sellers in the market. She tells me she take out only 2K cash from ATM every week now  to purchase vegetables and street foods. All other shoppings she does using her phone, including paying her bills. SHe pays my condo electric bill and I transfer the money from my account to her account. In Thailand I think they should focus now to bring more consumers/street vendors using online transactions like they are doing in India. Also, thailand needs to develop its own payment system like in India. 

Edited June 12, 2022 by Onerak

[Onerak]

30 minutes ago, rickudon said:

Even need to photocopy passport for every withdrawal !

My Thai banks make photocopies when they need it. They don't ask for photo copies. 

[rickudon]

1 minute ago, Onerak said:

My Thai banks make photocopies when they need it. They don't ask for photo copies. 

Yes, they do it. But an utter bit of bureaucratic <deleted>.

[Onerak]

13 minutes ago, rickudon said:

Yes, they do it. But an utter bit of bureaucratic <deleted>.

Except adding a little longer wait time, it really does not bother me. And I go may be once in a few years to the bank. So not a big deal.