| | NOVEMBER 20218CIOReviewBEYOND THE TRANSACTION: A HOLISTIC APPROACH TO BUILDING CUSTOMER TRUSTBy Barry Baird, Head of Payments Capability and Delivery, TDThe evolution in payments technology to drive faster, easier options for sending and receiving money was well underway prior to the COVID-19 pandemic; however, it has certainly heightened the need to accelerate this direction. The infrastructure behind new payment platforms carries a flood of data that can ultimately transform the bank's role in customer commerce. At TD Bank, we're working to apply that data toward building a more holistic, personalized financial experience for customers--an intuitive, easily navigated one-stop-shop that will serve customers' incoming and outgoing transactional needs and, more broadly, help them achieve their financial goals. Listening to customer intel is key to evolving programs, especially during this difficult time, as products need to adapt to today's new norm. Fintechs, to a large extent, already have figured out how to remove friction from consumers' financial lives and offer user-friendly experiences and guidance. Many traditional banks risk falling behind if they don't lean into new payments capabilities to keep up with evolving consumer expectations. The significantly expanded transactional and behavioral data accompanying new payments platforms--notably Real-Time Payments (RTP)--can expand to eventually offer insights that can transform the traditional transactional role into one where new areas of value can be offered to both customers and merchants. Data to fuel personal financial management tools (PFMs), small business transactions, and benchmarking insights, including hyperlinks within the payment stream for the customer that are relevant to the transaction; these are all examples of the expanded potential. Using transaction location information to provide additional pricing/servicing comparisons for both customers and small businesses. The potential for providing invoicing within a payment request is yet another example of how RTP could add significant efficiency, cost reduction, and experiential value going forward. I see this as complementary to the information streams we'll be able to gather from data aggregators or data brokers, weaving together a fulsome picture of the customer and helping enrich their experiences and product offerings. Customers, especially during this strained time, have come to expect these experiences throughout an era in which they're accustomed to smooth, secure, personalized, and efficient digital transactions from services like PayPal and Amazon. Customers want the same level of relevancy, security, and efficiency for their banking transactions as they get in the rest of their everyday lives and we can either supply it or risk losing share. The industry needs to be thoughtful in how this once-in-a-generation new payment capability can interoperate within the customer's financial life. Giving choice and control via a cohesive user interface can provide a Barry BairdIN MY OPINION
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