By KrishnaRaj Sharma, Director and CEO, iValue InfoSolutions
Traditional banking and financial services ecosystem neither facilitates nor permits employees to access work-related files and content remotely. All internal workflow was confined within the four walls of the physical office. Furthermore, customers also limited their usage of online banking services. However, the unprecedented Covid-19 pandemic has changed, perhaps permanently, the way banks interact with all their stakeholders. The demand for remote functioning capabilities has enormously increased, driving the sector to adopt digital transformation and get re-imagined, where all systems and processes are integrated digitally to deliver extraordinary customer experience. This complete transformation is more beneficial in the long term, rather than just using disconnected technologies as and when required. The technological change is more suitable to today’s digital-savvy customer, who demands a seamless and integrated omnichannel experience.
It is delightful to see many financial institutions quickly adapting to the ‘next normal’ and spearheading digital transformation. Let us take a quick look at how they are reinventing systems and processes across operations and customer service with a successful implementation of interconnected digital technologies.
Understanding the customer’s journey and mapping it
Dynamic mapping of the past and current interactions of banks with their customers will improve the banking experience for the latter enormously. Real-time capturing and recording of customer communication across different channels and touch-points, including bill statements, invoices, receipts, product-offering emails, newsletters, messages and phone calls, among other correspondence is crucial. This will give the necessary insights into communication gaps or overload and enable banks to take quick action accordingly. Furthermore, this exercise will help to connect with customer’s digital touch-points, provide recommendations with relevant product offerings in real-time. An enriching customer experience will pave the way for customer loyalty.
Operate and serve like a tech services company
It is quite evident that with the increase in digital capabilities, banks can deliver a better and seamless customer experience. Mobile banking has already proved to be the game-changer in the industry. Messaging services and chatbots can be effectively used for supporting employees and customers with the necessary information they need to know. AI can be used to detect unauthorised attempts to access the accounts and other frauds besides providing support in developing cyber-security measures. Blockchain can be used for distributed ledger systems and secure document transfers. AI and blockchain will be used for providing transparency and security to customers. By leveraging predictive analytics, banks can develop sound marketing strategies to reach out to customers which could prove to be cost-saving in the long run. The operating model of a bank should have digital at its core and function like a technology-enabled services organisation.
Digital-first approach to shape business operating models
Today, to be resilient and cost-efficient are the two key objectives of banks and financial institutions amidst the Covid-19 pandemic and other economic uncertainties. The situation has accelerated the implementation of digital transformation and is driving innovation with new operating models. Customer and employee engagement models are being reassessed and rebooted for business continuity and generating better value for all stakeholders. Hybrid models or hybrid banking with digital at the centre are being implemented with personalised services offered on a case-to-case basis. Most financial institutions are taking their customers and employees on a digital journey, equipping them with relevant tools to function and ensuring they are future-ready.
Bringing about a digital mindset change
Huge investments in digital and analytics solutions and capabilities are not effective if there is no change in the traditional mindset of employees. A digital culture in operations, skill sets, processes and functions should be adopted to deliver a seamless digital experience. Employees should be equipped with new capabilities by up-skilling and reskilling with the right mix of both technical and functional knowledge. Empowering the workforce and preparing them for the new digital future will enhance performance and delivery, driving more revenues and an enhanced brand image. Customers too should be educated and made familiar with online banking by leveraging new-age tools and techniques, which will make them comfortable with digital transactions and deliver a greater experience.
Financial institutions should re-design the digital framework to address the financial, health and safety requirements of customers, thereby creating value for all stakeholders in the BFSI ecosystem.