Modern enhancements and innovations in digital banking have fueled a complete shift when it comes to global payments and banking norms; Joe Myers, Executive Vice President, Global Banking at Diebold Nixdorf highlights the latest trends in this catch-up with Global Fintech Series:
Tell us about yourself and more about your role at Diebold Nixdorf.
I joined Diebold Nixdorf as Executive Vice President of Global Banking in August 2022, and I’m super excited to lead the company’s Banking business around the world, working directly with customers to transform the way people bank. This includes sales, solutions delivery and strategic vision. Before joining Diebold Nixdorf, I was the President of North America and Chief Revenue Officer for Elavon, a wholly owned subsidiary of U.S. Bank and a global leader in payments processing.
We’d love to hear more about your new multivendor self-service banking software and how it enables end users?
Absolutely – Vynamic Connection Points 7, or VCP 7, is Diebold Nixdorf’s latest generation of multivendor, self-service software. It’s a modular solution made for easy deployment and maintenance that provides out-of-the-box, end-to-end journeys for customers. It features the latest user interface technology and provides financial institutions with a clear and simple path to digital transformation. With VCP 7, our customers can provide a wide range of advanced, self-service functions like cash recycling, cardless withdrawal, currency exchange, pre-staged deposits for individual consumers and small and medium businesses, and more.
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What is fueling the demand for self-serve digital banking platforms, and in the future: what type of banking software trends will lead the market in your view?
The rise of self-service, especially self-service digital banking platforms, has impacted every part of our lives. This increase, combined with the evolution of software, has ultimately provided the opportunity for two key factors for consumers: convenience and choice. From 24/7 mobile banking to pre-staging a cash transaction on your mobile phone, which is then fulfilled through the self-service channel, integrated digital platforms are creating the opportunity for consumers to bank on their terms—how, when, and where they want.
As consumer behavior changes, and with many routine transactions shifting to digital channels, banks have naturally been able to optimize operations, as well as re-evaluate branch networks. However, this leads to the vital question of how to maintain the balance between physical and digital channels, as well as how to leverage existing investments. We believe self-service continues to be this bridge through open APIs, flexible software, and advanced functionality, we’re shifting the ATM from a simple “cash & dash” machine to a strategic point of engagement.
Can you throw light on some of the most innovative digital banking features and innovations you’ve seen from the global fintech market – why have they piqued your interest?
We’re seeing increased interest in cash recycling at the ATM since there are many benefits to the financial institution. It can reduce ATM total cost of ownership by up to 20% and cash replenishment efforts by 75%. It also helps increase efficiency and reduces ATM downtime, which benefits consumers.
We’re also seeing an increase in the demand for alternative authentication methods, such as biometric authentication and contactless features. This can include using a phone with biometrics to begin a transaction that can be finished at an ATM or tapping your card rather than inserting it into a machine.
We’d love to hear your thoughts on AI and fintech: how are you observing new AI and ML enhancements transform global fintech?
Banks hold a huge amount of data on individuals, and this must be harnessed in order to maintain meaningful relationships. Embracing AI to create customer profiles and develop multi-layered segmentation can help support this process and help maintain an emotional connection with customers. Applying this data effectively can also ensure optimized customer journeys are in place, making sure the right services are delivered in the right way.
Leveraging AI along with its subsets of machine learning and advanced analytics to increase performance of the ATM fleet is already at scale. The use of AI has optimized operations and maximize ATM uptime for a large number of financial institutions, and as new capabilities continue to develop, more advancements can be expected. An AI-driven approach to maintenance is enabling a shift from a reactive to a predictive service model.
Three thoughts on the future of fintech and digital banking before we wrap up!
As the industry continues to navigate a path of change, I see three main drivers right now. First, it’s all about the customer. Keeping the customer at the heart of all strategic decisions is not just a ‘nice to do’ but a ‘must do.’ Influenced by experiences within the retail sector, customers are more demanding than ever; therefore, the need to keep pace with these expectations is forcing banks to reevaluate when, how and where services are offered.
Second, efficiency is top of the internal radar. Increased competition, costly legacy infrastructure, and complex regulatory requirements all drive the need to improve the efficiency ratio. To achieve this, we are seeing the concept of simplicity being introduced with heightened vigor. Stripping out complexity and focusing on the areas that drive customer satisfaction or generate revenue are all strategies the industry is adopting to laser-focus on efficiency.
Finally, the third driver we are seeing is future-proofing. We’ve seen more change in the banking industry in the last few years than we have in the last twenty. There has never been a more critical time to take a step back and re-evaluate what future success will look like, as well as how to get there. As a result, banks are streamlining operations, collaborating with joint ventures, outsourcing and introducing value-added services for customers to drive new revenue streams and provide the convenience and choice expected by the evolving consumer.
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[To share your insights with us, please write to psen@itechseries.com ]
Diebold Nixdorf offers proven expertise and comprehensive portfolios in cutting-edge product technology, multi-vendor software and service excellence for financial and retail customers.
Joe Myers is Executive Vice President, Global Banking of Diebold Nixdorf
