Banking CEOs expect digital revenue to more than double over the next five years. Its time CEOs identify and promote digital revenue growth opportunities.

Growth is a no. 1 Business Priority for current CEOs. However their emphasis is on selling more of the same products to the same customers and most importantly within the same markets.

It is now time for the CIOs to propose new, technology-enabled digital revenue solutions which will increase growth and in turn respond to competitive threats.

Digital business is the creation of new business designs reached by blurring the digital and physical worlds through the convergence of people, business and things. Digital revenue leverages digital technologies but is not solely a technology play. Digital revenue is new value creation that converges the digital and physical worlds and improves convenience and/or security for customers. New digital revenue opportunities such as digital identity services, data brokerage and personal data banks are possible only through technology. The banking CIO’s expertise in technology is therefore essential to identifying and explaining new types of digital revenue opportunities that the
board of directors and CEO can exploit.

Here are 3 identified digital revenue opportunities for Banks.

  • Digital ID Services

This service is enables the customers to authenticate themselves in this Digital World regardless of activity (banking or nonbanking). Here Identity and Access Management is the enabling technology which will be helping Banks to create the Digital ID Services. This service is mostly targeted towards the Retail and SMB banking.

Some Examples include –

BANKID which is a Citizen identification solution that allows companies, banks and government agencies to authenticate and conclude agreements with individuals over the internet.

SECUREKEY is a leading identity and authentication provider that simplifies consumer access to online services and applications. Its next generation services enables consumers to conveniently and privately assert identity information using trusted providers, such as banks, telcos and governments.

  • Fintech as a Sales Channel

This service is catching up and is a fast growing sales / revenue channel for banks these days. Here, The fintech partners sell bank’s products and services at their place (usually websites).

Some Examples include –

Fidor Bank is a German based digital Bank. Its current portfolio of products in Germany covers retail and business banking ranging from basic bank accounts and savings bonds,  to various lending offers.

Bank Bazaar is an online marketplace that gives consumers access to customized rate quotes on loans, credit cards or personal finance products such as insurance policies, bank loans and credit card offers.[1] They offer their services through web and mobile platforms, through which consumers can search for offers, compare, and customize it.

This service is mostly targeted towards the Retail, SMB banking and Wealth Management.

  • Customer Credential Tracking

This essentially means that the Bank has the capability to track how third parties are using customer credentials. As we are aware that everything of this sorts come under heavy security, there are no similar service present in the current market that anyone is aware of.

New age Banks can leverage this opportunity and can start this new service for their VIP clients and so on.