Three myths of digital banking that can hamper customer experience

By Abhijit Singh

The BFSI industry in India is at the forefront of digitization, especially in this post pandemic era. Digital banking has evolved from being a differentiator to being a necessity. And with the proliferation of new technology, apps and trends, almost all organizations are leading some level of digital transformation. But unfortunately, only a few can claim success in terms of impact.

This is because successful digital banking is rooted in improving customer experience and engagement. Merely deploying technology does not qualify as digital banking, especially if too much technology makes the customer’s life more difficult

Based on my experience, here are the top 3 myths in digital banking that hampers customer experience if not carefully evaluated for proper outcomes

Myth #1 : Creating a paperless bank
Reality: This is important, but not at the cost of customer experience

A paperless bank with multiple digital touchpoints might create more customer frustration than traditional banking methods if there is a poor handshake amongst numerous touchpoints. We should promote a hybrid setup wherein a drop in customer experience should immediately be taken to a human touch point.

Myth #2: Deploying latest technology and mobile apps
Reality : They are at the core of all transformations, but not if the effort and cost of adoption are high

The automation & apps only make sense if they can deliver superior customer service at a lower cost. All technology deliveries should be designed for naive personas rather than digitally native personas. Remember, empathy is essential. In addition, not all potential or existing customers are GenX

Myth #3 : Digitalisation of processes and products
Reality: Digital products are the focus for everyone. However, digital banking is more than just adopting shiny new technology in the market

It is equally important, if not more, for all business processes to be re-engineered digitally to improve internal efficiencies. Furthermore, there has to be digital training from senior management to front-end staff, including the back office and operations team, to reap benefits.

In conclusion, deploying new technology for the sake of ‘digital banking’ is a big mistake and a drain on an organization’s resources. It is important that we evaluate digital banking initiatives from the lens of customer experience only, and not basis the level or type of technology adopted.