There is no disputing the intense pressure facing bank CEOs to digitise their operations. The Covid-19 epidemic, which has limited face-to-face interactions, has contributed to the shift in the fight for attracting new clients to the digital arena. In addition, the Asia Pacific area is on the verge of a revolution in digital banking as new rivals attempt to undermine the incumbents’ dominance of the data and relationship markets.
Many consumers went to their primary bank during the pandemic’s difficulty and employed digital channels they had never used before. Banks had anticipated that the movement toward digital banking would take several years to accelerate, but it did so in just a few short months. All participants are under pressure to take advantage of the consumer willingness to accept this new method of doing business and further enhance their infrastructure and offers.
11 Digital Banking Commandments You Haven’t Heard 100 Times Before
- The “digital lift-and-shift” tactic is ineffective. Digital offers a fantastic opportunity to create something original and set yourself out from your rivals. Start with the fundamentals and redefine how you view financial services rather of relying on analogue assumptions or digitising a legacy, paper-based process.
- There is no inherent good or bad in friction. Points of friction that have been carefully considered can be quite useful for risk management and even reassure customers. Always presume that your clients are impatient and will leave if you keep them waiting. Pre-filling forms and importing data can both save users time, and even tiny user experience (UX) enhancements like real-time address look-up can make a major difference.
- In this impersonal medium, be friendly. There is a reason why brands name artificial intelligence Alexa and Siri (AI). Making consumers feel welcome and appreciated is the goal of personalization. Simple personalisation, when clearly exhibited, is the digital equivalent of a bank teller waving and smiling broadly at customers.
- Honor the data. Customers’ explicit or implicit data sharing is a resource. Show them that you appreciate it and are giving them useful information in return. For instance, Home Credit China was able to improve their loan process in response to the high demand for consumer loans in China by utilising data from customer loan applications and combining it with practical internal and external scorecards to objectively underwrite and assess new clients with a thin file. As a result, the bank was able to lower the credit risk on point-of-sale loans by 25% and online loans by 15% while simultaneously lending to the underbanked.
- Engage me, educate me, and satisfy my TikTok addiction. Customers want to learn how to manage their finances through high-quality material, but they do not enjoy being preached at, so you should be careful how you write about financial literacy. While entertaining and quick movies are appealing, remember that you only have seven seconds to make a good first impression.
- Make judicious use of your branch. Using branches to serve your clients’ goals rather of your own can help you stand out from the competition. Make sure your fraud and risk management procedures don’t make people visit your business unnecessarily. Customer-led activities across all channels are required. Provide seamless channel switching for your clients, but refrain from outlining their trip for them. Utilize technology to handle simple interactions while also making it convenient for clients to speak to a human being whenever they choose (voice AI, chat bots, etc.).
- Be considerate of your clients’ time and work. Make sure that the value your customers receive from each digital engagement is in line with the time and effort they have put in. Be proactive in seeking out chances to improve their worth and emphasise what they stand to gain.
- Harass your clients, but only when they request it. Timely communication through the appropriate channels will serve to comfort clients and provide them a sense of control when it comes to money, especially in a faceless channel. Always err on the side of excess rather than deficiency. When it comes to problems like alleged fraud and insufficient finances, be extra transparent to avoid unpleasant shocks. Create performance data by repeatedly asking “Was this helpful?” Supervised learning is used to train machine learning models.
- Focus on your clients, not your technology, for inspiration. You need granular customer segmentation to recognise and interact with clients as individuals because one size does not fit all, or even most. Even the most cutting-edge technology cannot substitute an intense concentration on and familiarity with your target market. Make it a habit to always look for client wants and pain points in order to stay on top of how unpredictable and changing customers’ expectations are.
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- Encourage customers to feel secure. At its core, trust in financial services is concerned with security. The development of client trust must be a top goal for firms that are entirely digital. Small details like lock iconography can significantly impact how “your money is safe” is communicated. Utilize the advantages that digital technology has to offer, such as geolocation data and behavioural biometrics, to create a little friction in the service of security while also building trust.
- Work as a team, just like a symphony orchestra. Customers can painfully tell when a digital experience is fragmented. Spend money on orchestration and integration, and pay attention to the little things. To avoid having clients opt out or block your number, make sure you have a single “digital communications brain” managing customer interactions.