“There’s no competitive advantage doing that,” he added. “Very few banks are fundamentally changing their architecture. Banks should automate their complex business problems.”
Banks need to be more innovative in their technology, said Mehta, noting that it’s a big deal when Google announces it will spend $1 billion on technology in a quarter, while major banks often spend $5 billion a quarter.
“But banks can’t personalize offerings for 10 to 30 million people while Google and Facebook can personalize communications to hundreds of millions. Banks need to harness the power of data, what they uniquely know about an individual customer. It could be credit card or whatever, but unless they realize their only competitive advantage is their unique knowledge about that customer, it goes nowhere. Once they figure out what they have, they need to automate it.”