The emergence of a new generation of customers who are more aware, immensely dynamic and intensely active socially, is making banks rethink their traditional approaches and realign their strategies. Transforming through inculcating digital technology into the business, operations and customer service is a compelling imperative that not only helps the banks to provide their customers a whole new experience, but it is also a matter of necessity, if not of survival, in the wake of Fintech increasingly making their presence count by becoming a viable and preferred choice for financial services.
When customers switch, they are only expressing their power of exercising their choice. The exposure to a vast array of social media and technology channels makes them aware of all the options. The new-age banking process requires to be attentive to this change in dynamics, and is therefore listening to their customers by using technology. Banks want to understand, align and augment their business by embracing the same technology choices that is as much available to the banks, as it is to Fintech. Speed of embracing the use of new technology may vary between the traditional and new, but that will also change with the change.
Understanding Customer Relationship forms the basis of this business transformation. It is imperative that banks effectively manage and maintain huge repositories of customer data by using big-data and advanced analytics. The richness of their data quality and analysis correlates with the level of competitive advantage banks enjoy in their industry. By leveraging customer information from assorted sources of data and utilizing the benefits of technology tools, they can conduct predictive and prescriptive analysis for their customers. As a result of the digital transformation, the banks are providing their customers with more evolved facilities, as banks can help them track an event, evaluate its cause, predict its outcome and can prescribe possible actions that customer can undertake by financial timelines. Effective data analytics alongside Digital Banking is an integral part of digital transformation approach.
This digital transformation is often identified as Digital Banking and according to Chris Skinner—as he opines in his blog, the Finanser.com—in order to be successful, digital banking needs to be inducted as a culture and not a project.
It should not be defined by a budget or be assigned to a team. It should be an organization wide approach that is adopted across the board. In order to ensure its proper adoption and acceptance, banks are opting for an agile, innovation friendly and socially collaborative workforce.
The recent spurt in implementation of Cloud based solutions in banks helps to make work processes simpler and more flexible by breaking down traditional structures and dysfunctional systems. In other words, Cloud solutions are an enabler in order to usher in a seamless transformation of the business processes from the physical to the digital.
Digital transformation in Banking is possible only when digital banking, big data analytics, cloud technology are applied in tandem alongside an organization culture that is able to exploit it.
Today, staying alive and relevant in the fast changing industry is a matter of delivering a seamless digital experience. In order to be successful, banks need to bend their efforts in that direction.
Author: Kishore Kapoor
Kishore Kapoor an industry veteran of 31 years in global banking technology. A Founder & CEO of eKutumb.com – World’s first marketplace for enterprise software delivery and consulting business by creating value for all of industry stakeholders involved (customers, partners, individuals and investors) through a disruptive and trans-formative approach of doing business.