Tan Meng TeckApril 03, 2018

Creating a Digital Banking Strategy that Meets Every Customer Preference

When it comes to a digital banking strategy, financial services businesses have reached a precipice. Here’s where they should go.

You know what’s scary? Financial institutions can increase profits by over 40% over the next five years through digital transformation, yet almost half of executives are still sitting on their hands. These leaders categorize their organizations as “fast follower,” meaning they watch the market closely and act only once a concept has been proven.

This method may sound practical, but it’s a slippery slope to becoming a laggard. Think about it: five years from now when you’re ready to start digitizing, you may find that your competitors have already disrupted major components of the value chain. Meanwhile, analysts predict that your revenue will have dropped by up to 35%.

You know what you need to do: create a digital transformation strategy that allows you to effortlessly make critical operational and workflow changes to continually stay ahead of the competition and customers’ evolving needs. So, let’s talk about ways to get it done.

Time to Take Action

Today’s relentless pace of change, combined with a lack of the right tools and technologies, have made digital transformation in financial services particularly daunting. So, what should you consider for an effective strategy? If you ask us, your approach must include three core pillars: mobility, branch transformation and the future of the financial consumer lifestyle.

Here’s a list of ways to begin digitally transforming financial services using this trifecta:
1. Mobility
Financial services have shifted to a world of next-gen mobility in which providers can deliver innovative new benefits and reimagine business outcomes.

  • Chat bots: Consider DBS digibank Virtual Assistant or CIMB Bank EVA. Tens of thousands of similar chatbots have been developed using AI platforms like Facebook DeepText. In fact, 50% of Facebook users say they’re more likely to do business with a brand that can conversationally message.
  • VR/AR: Retirement savings. Forward-looking spending analyses. Investment options. Amplify these initiatives by replacing or simulating what customers see throughout the process. Research has proven major competitive benefits.
  • Biometrics: Allow customers to complete traditionally complex, in-person transactions—like opening a bank account or applying for a credit card—on the spot with voice, facial or print verification.
  • Digital wallet: While usage is still low (Apple Pay has the highest usage rate at 5.5%), a new study from MasterCard found that digital wallets are mentioned in 75% of conversations that social media users have about new ways to pay.

2. Branch Transformation
The bank branch has been ushered into a new world of seemingly limitless possibilities. Industry leaders should strike the perfect balance between digital innovation and a traditional branch experience.

  • Smart ATMs: Banks in China already offer a Virtual Teller machine that gives their customers the ability to complete end-to-end processes including account opening via video conferencing with remote specialists.
  • Contextualized Offers: Consider how you can deepen customer relationships in and outside of the branch through contextualized, product-related offers. Forge strategic partnerships with prominent brands and refashion the way customers do business with you.
  • Advanced data sharing: The goal is to create a real-time data repository for employees to track, collect and share relevant information across teams, processes and customer touchpoints. The result should be fewer customers repeating information and minimized—if not, eliminated—agent transfers.
  • Advisory-approach: Only 26% of customers believe their primary financial institution provides unbiased advice. Consider establishing zones that offer impartial advice on specific financial activities like loan applications, refinancing and wealth management.
  • System integration: The branch of the future should be built on open, agile, future-proof infrastructure that can seamlessly integrate new and existing platforms.

3. Future of the Financial Consumer Lifestyle
For financial institutions, the wave of the future is fueled by new and constantly evolving banking customer personas. Innovators will always stay ahead of this inevitable change.

  • Analytics: Identifying, interpreting and documenting behaviors and preferences is vital for intuitively understanding customers at the individual account level.
  • Communication-enablement: Allow customers to engage however and whenever they want by embedding custom communication capabilities like voice, video and chat directly into client-facing applications.
  • Blockchain: A must for managing virtual wallets, process payments and Bitcoin (which accounted for half of this year’s astronomical 800% cryptocurrency market growth).
  • Omni-channel: Integrate digital channels with tried-and-tested ones to create a powerful omni-channel capability that gathers, collects and provides data where and when that data is needed.
  • Intelligent routing: Put customers in touch with the right subject matter experts at the right time, regardless of where employees are within the organization or when and where customers initiate conversations.

Digital transformation in financial services means reaching beyond the realm of possibility. It means creating concepts, not just following them. Our mission at Avaya is to help companies look farther and act faster than thought possible. With award-winning technologies and hands-on consulting, we’re helping financial institutions effectively and cost-efficiently deliver unparalleled customer experiences.

You’ll never truly innovate if you idly wait for others to do what you can be doing now. So, what are you waiting for? Start now by looking at our guide “The Future of Customer Engagement in the Era of Digital Banking.”

Creating a Digital Banking Strategy that Meets Every Customer Preference

Tan Meng Teck

Teck has spent most of his career consulting on, designing and implementing customer experience solutions. As a Regional Director at Avaya, Teck has helped enterprise clients in Southeast Asia and Greater China to define their CEM strategies and improve their Net Promoter Scores and customer lifetime value. In the contact center industry, Teck has been a featured speaker at Avaya and Industry events, including MAMPU ASEAN CIO forum and the Contact Center Association of Singapore.

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