3D Advisory is a boutique financial services consulting firm, based in Dubai, that focuses on Digitization, Data and Design, the three pillars that will define banking success in the future.

Digitization has paved the way for numerous advancements in banking, enhancing convenience for both customers and financial institutions. Online and mobile banking platforms have become commonplace, enabling customers to conduct a wide range of transactions from the comfort of their homes, and wealth management apps have democratized investments. Digitization has reduced paperwork and manual processes, streamlining operations and improving efficiency, and focus is now shifting to ancillary areas such as risk, compliance and legal which are mor complex. Embedded finance is gaining ground and banks are building or being part of developing ecosystems and platforms. Lastly, humanizing the experience continues to be a key priority with customers expecting personalized service and advice when needed, through hybrid platforms and remote support.

New technologies will continue to shape the financial services world driven by developments in applied AI, cloud computing, machine learning, trust & identity, and web 3, as well as the emergence of flexible and modular IT architectures, API usage and investments in cyber-security and fraud protection. Customer adoption of digital banking will continue to rise led by a demand for convenience, lower cost and anytime banking.

Most digital banking transformations do not achieve their objectives as banks tend to underestimate the costs and complexity of change, the technical debt that needs to be overcome and organizational challenges such as lack of the right talent and operating silos that hinder execution. Research shows that digital banking champions achieve better financial performance and customer experience with higher returns on assets and equity, lower operational costs, and improved customer satisfaction metrics. Equally, banks that fail to successfully digitize could become less relevant over time and cease to exist.

Data is widely considered as the oil of the digital age, however increasingly it is becoming like water, an essential resource that is widely available and requires careful management to extract value. There is an explosion of digital data production today globally through emails, texts, tweets, photos, videos, and financial transactions. Customers have increased digital footprints led by enabling technologies and a higher propensity to create and share data.

Data plays a crucial role in the success of a bank by enabling informed decision-making, enhancing operational efficiency, mitigating risks, and improving customer experiences. Banks collect vast amounts of customer data, such as income, transaction history, demographics and preferences. By analysing this data, bank CMOs gain valuable insights into customer behaviour and needs.

Data analysis plays a vital role in identifying and managing credit risk, market risk and operational risk. Banks can build predictive models to assess the creditworthiness of borrowers, detect fraudulent transactions, or forecast market trends. This allows risk officers to make more informed lending decisions, implement risk mitigation strategies, and safeguard against potential losses. Additionally, data analytics can significantly improve operational efficiency. By analysing transactional data and customer interactions, banks can identify bottlenecks, streamline processes, and automate routine tasks. Open banking, hyper-personalization of customer experiences, as well as adoption of generative AI are fast emerging as must haves for banks today. Data usage consents, security, privacy and governance have become table stakes across geographies. Effective usage of data is a key requirement of most areas of banking today and a coherent data strategy and roadmap needs to be in place at the earliest for banks to successfully leverage this today and in the future.

Design plays a crucial role in banks today, as it helps shape the overall customer experience and enhances the usability of products and services. User Experience (UX) design focuses on understanding customer needs and preferences to create intuitive interfaces, clear navigation, and efficient interactions across various touchpoints. Aesthetically pleasing and visually appealing interfaces contribute to positive perceptions of a bank's brand.

Product and process design play a significant role in shaping products, considering factors such as functionality, usability, and customer needs. Product managers and engineers work closely together to create customer journeys that minimize friction. Finally, although digital channels dominate customer interactions today, physical branches still play a role in the banking experience. Branch designers work on layouts, signage, and interior design to create inviting and customer-friendly environments to cater to evolving customer requirements such as self-service, advice, as well as community outreach.

Reimagining UX across different touchpoints is key to providing a seamless and omni-channel banking experience. Embedding of banking user journeys within larger customer journeys in eco-systems such as shopping, traveling or buying homes is key to providing banking where and when customers want it. Accesses for people with disabilities and vulnerable segments, and financial inclusion are important objectives for banks and regulators. Finally, humanizing the experience by marrying tech with touch is increasingly desired by customers as they seek to obtain the advantages of technology with also requirements of personal touch and trust.

Banking as an industry adopted design as an imperative later than for example the automobiles or the electronics industry. A growing number of customers are indicating they will change their bank for a better designed product or service, making Design the final pillar in the house of banking.