"The traditional banks are at a crossroads: they will either develop or they will be left behind," Chief Customer Experience Officer of the Bank of Valletta (Malta) Thodoris Papadopoulos said in an interview with the Athens-Macedonian News Agency (ANA-MPA).
He underlined that traditional financial institutions must adapt to the changes brought about by technology. He described financial technology (fintech) as a huge opportunity rather than a threat to banks, adding that partnerships with fintech companies have increased by 40% in two years, according to a Deloitte survey.
Asked about the three critical changes that banks need to make in the new era of fintech, he replied: "First, a customer-centric mindset with technology support is needed: customers are comparing experiences - not just banks. According to McKinsey, digitising the 'customer journey' can increase customer satisfaction by 20% and reduce costs by 30%. Functions that fall under the umbrella of customer experience (CX), such as user experience (UX) for example, are not a luxury - they are a requirement. Second, a culture of continuous improvement is now essential for a bank. Change does not start with technology, but with mindset. 89% of banks that adopted agile practices saw faster innovation growth , according to research by Boston Consulting Group (2023). Therefore, learning, agility and feedback must become a daily practice. And, thirdly, there is a need to partner with fintech companies and integrate new technologies. Together we can offer flexibility, innovation and speed - things that customers now take for granted."