Digital transformation is much more than offering online services; it is about combining the convenience and speed brought by digital platforms with human interactions, to ensure a comfortable and fulfilling customer journey. In simple words, digital engagement is the key to create an enriching customer experience. This is true for all the industries that are looking to transform digitally, including banks. Today, banks are considering different ways to learn about, engage with and satisfy their customers, which is helping them to transform from service-centric to customer-centric. According to a survey conducted by Boston Consulting Group, 86% of the banking firms believe that digital transformation will fundamentally change the competitive landscape of corporate banking. What’s holding back the rest of the banks to transform? What do they need to do to start with their digital journey? The starting point for each of these businesses should be a future-proof, realigned business strategy – a strategy that can ensure their strong marketing positioning and capabilities in towards redefined world. To build a robust digital transformation strategy, the banks need to focus on below strategies:
Adoption of next-generation technology
There are several emerging technologies that can help banks in redefining themselves. Among the most trending ones, we can highlight Artificial Intelligence, Internet of Things, Cloud Computing, Blockchain, among others. Artificial Intelligence in the banking sector is represented majorly through chatbots that help customers with their day-to-day issues including problems with transactions, information required for loan processing, and so on. Not just this, AI is also used for data collection, organization, analysis and reporting purposes. For example – analyzing customer data for loan approval process or money laundering, within just a few seconds. Internet of Things has been helping firms in generating real-time data analysis, and this can be useful for the banks as they can make customer experience more personalized and tailored as per their specific needs. With the help of wearables, customers can make contactless payments. Cloud Computing can help banks in offering more innovative and effective solutions, with improved productivity. Cloud storage can ensure a secure environment for bank customers and help them with risk management. Blockchain, which is known as the digital ledger, acts as an interface that helps provide secured and accurate information to the banks. It also makes the transactions transparent, eliminating the need for third party intervention and hence resulting in higher protection of customer data and funds.
Instigating an omni-channel approach
Currently, there are various channels that are working in silos. However, the digital transformation calls for breaking these silos and adopting omni-channel strategy, which means providing same level of experience to all the customers irrespective of their behavior and preferences. Customers belonging to any income group, any age group, any income group or any geography, can make transactions using mobile, ATM or online. They can even start a transaction with mobile, continue on web and end in ATM. This flexibility to switch between different channels is the beauty of omni-channel strategy, and the need of the hour.
Serving what’s needed, not just asked
If banks have to digitally transform themselves, there is a need for them to serve their customers according to their needs. Basis what they ask the search engines (or what they look for on these engines), the banks should be able to find out more about what their actual need is. The proactive solutions are always appreciated by customers and help the enterprises in building long term business relationships. Banks can also make their suggestions to the users based on their financials, searches, likes, dislikes, behavior and so on.
Reinventing the customer journey
There is a need for banks to understand the points that are critical in a customer’s journey – points that are going to create different customer segments and improve the whole experience. These points are to be figured out by keeping the end goal in the mind, which is to digitize the customer journey from beginning to end. This includes digitizing various processes such as customer onboarding, tracking, setting up products and services, payment processing and transactions, customer service, and marketing and customer acquisitions. All these four pillars play a key role in digital transformation of the banks. They help in laying out a perfect strategy, which provides enhanced and enriched customer experience.
To know more about this emerging technology and how SLK can help you leverage it, reach out to SLK BFSI Consulting Group to schedule a demo. SLK believes in ensuring continuous growth of customers by inspiring and empowering them to be the best in delivering solutions to meet global IT challenges. To further this mission, SLK is equipped with high quality Banking & Financial Services Consulting Group supported by an experienced Business and IT research team. The team leverages industry experts, expert articles, analyst firms like Gartner, Forrester, IDC, Aite, Celent among others to bring you the industry insights, trends, best practices and proposes strategies for innovation and transformation.
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