The banking industry is undergoing a rapid transformation, with digital technologies playing a pivotal role in reshaping how banks serve their customers.
Nadine Methner, Head of Business Banking for ING Italy and General Manager for ING Germany, is at the forefront of this change, focusing on how digital solutions can make banking more accessible, especially for small and medium-sized enterprises (SMEs).
“Digital banking is no longer just a trend — it's essential to the future of banking," Methner said. “In my role, I focus on making SME banking accessible through seamless, fully digital processes, which has been a challenge in markets like Germany and Italy, where SMEs are underserved.”
Methner has been driving this transformation in both Germany and Italy, where she has worked on creating efficient, user-friendly onboarding processes for SME clients. These processes aim to minimize dropouts and ensure a smooth journey for customers. “Our goal is to make banking seamless, while maintaining the trust that comes from dealing with a serious financial institution,” she explained.
Trust and technology: A delicate balance
As banking becomes increasingly digital, questions of trust and security naturally arise. Deepak Arora, Senior Vice President & Head of Banking for Europe, Financial Services at HCLTech, discussed how technology can address these concerns, particularly with AI-driven tools that help banks detect fraud and protect customer data.
“Technology is fundamentally changing the way banks interact with customers,” said Arora. “While this brings great opportunities, it also raises concerns around trust, transparency and security. At HCLTech, we work closely with partners like ING to ensure that as we leverage new technologies, we also prioritize and foster trust.”
He added: “With AI and advanced analytics, we can monitor transactions in real-time, identify anomalies and prevent fraud. Building trust means showing customers that their money is safe, and that technology is being used responsibly.”
AI in banking
For several use cases, AI adoption in banking is growing, though skepticism remains.
According to Methner, the hesitancy around AI is due to concerns over data privacy and customer acceptance. “AI in the German market has been looked at with a certain skepticism,” acknowledging that clients are still uncertain about the role AI can play in their banking experience. However, she sees a path forward by introducing AI transparently and educating customers, especially in small and medium-sized business (SME) banking, where AI can drive efficiency and cost savings.
Arora echoed the need to demystify AI for customers. “The problem with AI is that the general public is still not sure, what does it mean?” He emphasizes that banks must simplify AI’s benefits, showing how it can make banking more customer-centric. “AI can help predict and resolve your issues proactively, making your banking experience more streamlined and effortless,” said Arora. By proactively addressing customer needs — like offering fee-free services when traveling abroad — AI can transform how banks engage with their clients, building trust through real-time solutions.
Both leaders believe that the key to AI’s success in banking is simplifying its use and focusing on the customer experience.
Regulatory challenges: A tale of two markets
The banking landscape in Europe is deeply influenced by regulations, which can both enable and hinder innovation. While the UK has made strides in regulatory flexibility, Germany and Italy have faced more challenges. Methner shared her experience with these hurdles, especially in Germany, where regulatory processes can be slow and complex.
“In Germany, we tried to launch the first embedded finance collaboration, but it took us months of intensive negotiations. We were up against rigid regulations, and while that’s important for consumer protection, it also created barriers to innovation.”
Methner also noted that Italy, despite its own challenges with data protection and digital transformation, is moving at a faster pace. “Italy has had its own economic challenges, but my impression is the country is to some extend more open to digital banking solutions, particularly in the area of cybersecurity,” she said. “Cyber protection is a top priority in Italy, and as a result, the market is more open to adopting e-ID technologies and other digital innovations.”
The role of data: Unlocking new possibilities
Arora highlighted that one of the most powerful assets banks have is the data they’ve collected over decades. “Banks sit on a goldmine of data — transaction histories, spending habits and even behavioral data — that can be used to create highly personalized offerings,” he said.
However, banks often struggle to unlock the potential of this data because of legacy systems and lack of integration. “Banks need to leverage this data, but they need the right technological infrastructure to do so,” explained Arora. “This is where HCLTech steps in. We help banks clean up their kitchens [data systems] and build the future-ready systems they need to become truly data-driven.”
The path forward: Innovation and collaboration
As the conversation turned to the future, both Methner and Arora stressed the importance of collaboration between banks, tech providers and regulators. Methner was particularly optimistic about the opportunities for progress in both Germany and Italy, but she acknowledged the need for a collective effort to overcome existing barriers.
Arora also emphasized the need for banks to embrace agility. “The FinTech's are coming, and they’re moving fast. But banks have an advantage — they have the data and the trust of customers. What’s needed now is to leverage technology and collaborate with the right partners to deliver the next wave of innovation.”
Looking ahead, both agreed that the banking industry in Europe needs to continue to use technology to move forward. By embracing data-driven innovation, collaboration and the potential of AI, banks can unlock new opportunities for growth, efficiency and improved customer experiences.
