Why Network Transformation is Key for Mobile Banking Strategies

Gabriel Schild

Digital Transformation Consultant for the Financial Sector at Verizon

Views 998

Why Network Transformation is Key for Mobile Banking Strategies

06.10.2017 08:00 am

Many financial institutions are now facing the increasing need to invest in mobile banking strategies to retain and attract new customers. In today’s digital age, customers are now accustomed to taking a mobile-first approach in their daily lives and wish to do the same when it comes to banking. This has become a ‘do or die’ scenario for banks in order to accommodate the growing app economy that people now ‘bank’ on.

Cloud-based applications and services are enabling financial institutions to meet customer expectations and provide services securely across a multitude of locations and devices. Customers regularly now use specific mobile apps to access their finances, apply for loans and manage changes to their accounts. However, in order for these apps to perform efficiently and engage customers the network connectivity is crucial for maintaining the speed, security and reliability needed to manage the growing volume of sensitive data being transmitted and gathered by banks on a daily basis.

Ushering in Modern Day Banking with a High-Powered Network

Traditional networks worked well when market demands on enterprises were less dynamic, but businesses today have to be more innovative and agile. Most don’t allow applications to scale as quickly as required which can lead to lengthy and painful deployment cycles. These new cloud-based applications need to reside outside the traditional internal network used previously and require a more optimal ‘flexible’ network model.

The answer lies in Software-Defined Networking (SDN) architectures such as software-defined wide area networks (SD-WAN) which basically help businesses turn their physical network into an on-demand virtual network. These software-based architectures are enabling banks to create networks that are more flexible, agile and faster than ever before, ultimately bolstering their cloud-based and mobile services, allowing consumers to have more seamless user experiences.

Whether it’s faster mobile payment transfers, reduced lag times for credit card applications or even support for new AR (Augmented Reality) and VR (Virtual Reality) applications, the implementation of SDN allows networks to automatically adjust during times of high traffic, so mobile banking capabilities won’t be compromised or crashed. Because these technologies are software-driven rather than hardware, the network can automatically adjust to different levels in volume. For example, a bank’s network can automatically adjust capacity to handle historically high-traffic periods such as the first five days of the month when mortgage and rent payments are typically transferred from consumers to financial institutions and property managers.

Software-defined networks can also better support increased network traffic within a branch, so that crucial capabilities such as wire transfers or account updates will remain online and won’t be compromised or delayed. When a boost in network speed or bandwidth is needed, banks no longer have to wait for a technician to make a service call to adjust network hardware which could take days or even weeks to schedule. Instead, that same intelligent automation built into the network software prioritizes the most important applications, helping prevent congestion and creating a more elastic and flexible network.

This intelligent automation also opens networks to being updated and improved through pushed software updates as needed, reducing the need for cumbersome hardware upgrades and allowing for the support of leading-edge applications. This flexible architecture also allows banks to respond to the latest malware threats and put in place robust security measures to help protect their customers’ personal banking information and corporate assets at the network level.

Integrating a Successful Network Transformation

Before beginning a network refresh with SDN, financial institutions should define their objectives and decide exactly what they want to achieve. This will allow banks to clearly articulate requirements to their IT teams and ensure alignment between the needs of the business and IT. It is important to make the right investment in network infrastructure now as, thanks to software-driven updates which happen efficiently, today’s networks will have more longevity than the network hardware of years and decades past.

Ultimately, a healthy and agile network vastly improves the functionality of the cloud-based technologies that support the mobile banking services which consumers and employees alike have come to rely on for their banking needs. Making the investment in network transformation is crucial for supporting this shift in how people now like to bank. Ushering in the bank of the future starts with putting the right network in place to support not only the technology of today, but the smart technology-driven applications that will exist in the future.

Latest blogs

Maikki Frisk Mobey Forum

Shifting Sands: Highlights from Mobey Day 2017

Shifting sands: Highlights from Mobey Day 2017 We are approaching the most critical juncture in the history of modern banking. The impact of regulation, in concert with the increasing deployment of transformative technologies, is permanently Read more »

Anthony Hynes eNett International

How the travel industry can reduce fraud through digital payments

This week is International Fraud Awareness Week, an initiative designed to highlight the impact fraud has on society and boost awareness and understanding of how to spot and prevent fraudsters. And with fraud on the rise, it’s never been more Read more »

Freddie McMahon N/A

Chatbot and Blockchain Start to Cross-Fertilise

There is a very early emergence of Chatbot capabilities being enriched by Blockchain. There are three distinctive use cases:   Conversational Customer Consent Certain types of Chatbots provide a viable alternative to dense ‘legal’ content such as Read more »

Christian Voigt Fidessa

MiFID II quick fixes

In its consultation for changing RTS 1, published yesterday, ESMA suggests that the tick size regime should also be extended to Systematic Internalisers. I don’t want to discuss whether it is a sensible proposal. Nor do I want to debate whether ESMA Read more »

Laurent Cremer OSPT Alliance

Could HCE & CIPURSE be the answer to super-charging your mobile ticketing solutions?

Mobile ticketing is becoming increasingly important in the transport ticketing sector. For travellers, mobile ticketing offers speed, convenience and real-time travel updates. For public transport operators (PTOs), it creates a live, direct Read more »

Related Blogs

John Fernandez PPRO Group

The Impact of New Iris Recognition Technology on Mobile Banking

Samsung’s Galaxy Note 7 boasts iris recognition technology and provides interesting opportunities for mobile banking. Compared to knowledge based authentication, biometric solutions such as Samsung’s offer more robust security and will prove an Read more »

Andrew Barnett Fiserv

Online and Mobile Account Opening Process Adds Ease and Convenience

As more financial services activities shift to digital, account opening remains – for now – a branch-centric activity. Only 22 percent of people who opened a checking account in the last 12 months did so online, compared to 72 percent in the branch Read more »

Michael Allen Dynatrace
Markus Sander Capco

Confessions of a naked wallet. Cashless and cardless on the streets of Germany

In the third of a four-part series, Markus Sander tests the latest payments innovations. This week: cashless and cardless payments. Having equipped my phone with an NFC sticker (there are smartphone manufacturers that don’t see the need to integrate Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53, +44 (0) 173 261 71 47 Download Our Mobile App