Here we go again.
Here we go again.
If one compared 4000 years banking history to the average human life-span, digital banking would have just started making unintelligible noises and mobile banking would be barely a month old. Yet the digitisation of financial services has led to a shift as extreme as the introduction of digital money or the development of central banks. Today most people have no need to physically visit their banks and can conduct transactions electronically. This has created a range of opportunities and challenges that will transform the banking industry in the coming years.
According to the The Cisco Internet Business Solutions Group (IBSG), Gen Y and Gen X are increasingly adopting new devices and online channels for financial purposes. 40% of Gen Y customers prefer using Personal Finance Management (PFM) tools to manage their expenses and savings, and are more inclined to interacting with a financial advisor on video chat, compared to boomers.
With customers buying financial services online, most banks have revamped their digital presence to simplify access to their products. The use of integrative technologies and game-like interfaces enables a more seamless end-to-end experience for customers with their bank. Another major source of investment has been in the area of big-data analytics which assists in suggesting relevant products to customers and fraud detection.
The ubiquity of mobile systems implies that within the next few years, most financial transactions will be via such devices. This will lead to a huge expansion of the customer-base of banks since mobile internet requires much less user infrastructure. The challenge for the banks is obvious: creating simple, unified and secure end-to-end platforms, which can handle huge data and traffic with little or no downtime.
Mobile banking offers more transactional features as opposed to the full menu of services. However, the list of services available through mobile banking will increase in the future, ultimately encompassing all of the banks’ offerings. This requires a paradigm shift in security architecture (WAP based interactions do not have firewall protection) and creation of platform independent applications. Further, the banks have to present themselves in a new light to an audience much of whose social and professional lives are conducted virtually with the physical location being irrelevant. Making the mobile banking platform a scaled-down version of the bank’s webpage is not the solution.
This scenario has opened up an avenue for development of full mobile banking by new players. More such innovative applications are the order of the day, if mobile banking has to realise the full promise of the digital banking revolution.
As mobile banking dominates the market, banks need to keep up with digital banking developments in this competitive market. They should look at adopting new banking technologies and integrating advanced transaction banking platforms. Get to know about a high-speed banking platform which provides an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance in an integrated set, through a single platform.
Find out more in this year’s annual conference of Sibos, where iGTB will be showcasing its core comprehensive products, from Corporate Banking Exchange, Customer Onboarding, Payments Services Hub to Liquidity Management.
By 2015, digital banking is predicted to overtake branch banking as the preferred channel, according to the report, ‘The New Digital Tipping Point’ by PwC.
In this digitally frenzied environment, majority of the population is immersed in some device or the other, be it laptops, mobiles or tablets. It is important for banks to utilize innovative banking technology and understand the new age digital banking customer.
Digital Banking Customer – Segmentation by Generation
There are interesting characteristics of each generation from Baby Boomers (Hippies, Yuppies), Generation X (Lacthkey Kids), Generation Y (Millennial Generation), and Generation Z (Digital Natives) to the future of Generation Alpha (Google Kids).
According to the PwC research, ‘The New Digital Tipping Point’, Generation Y or the ‘Millennial Generation’ is 20% times more likely to consider using mobile or online banking than Baby Boomers. They are characteristically tech-savvy, brand loyal and consistently choose their primary bank when planning to buy new banking products.
With Generation Y being the segment that embraces technology and digital communication, banks need to focus on this group and build a primary customer relationship with them.
Give What Digital Banking Customers Want
Many banks have been following the trend of “show us your transaction history, and we will tell you who you are.” This approach of understanding customers no longer truly applies. While it is important to know customer behavior, it is more important to understand why they transact the way they do and how they wish to interact with banks.
To understand digital banking customers, you need to know what they want.
Digital banking innovation has evolved as technology companies are focusing on creating software that is more customer-centric. Currently, there are three areas of focus that banking companies need to consider when understanding the customer:
Digital banking technology and products should be built based on a strong understanding of the digital customer behavior and preferences. In order to create a customer-centric experience, banks need to adopt new and advanced banking technology.
Find out how you can capitalize on the digital banking wave in this year’s annual conference of SIBOS, where iGTB will be showcasing its global transaction banking products, from Corporate Banking Exchange, Customer On-boarding, Payments Services Hub to Liquidity Management and more.
Read more about the Top 3 Trends in Digital Banking
The digital era has changed the entire landscape of the banking industry, and has provided new opportunities to improve customer experience. Customers are increasingly using smartphones, tablets and PCs to access financial information and perform transactions.
With evolving technology and customer landscapes, it is important for businesses to keep up with the trends in digital banking:
Banking strategies have changed over time to suit the evolving needs of various customers; with no room for ‘one size fits all’. Planning is integral to counterbalance device and platform differences.
In this digital world, keep up with what’s hot and happening. Expect the extraordinary and experience “Digital Banking 360” showcased by iGTB for the tenth consecutive year at the Sibos annual conference.
Take a look around, there’s an interesting transformation happening today.
Customers are getting digitized
Whereas customer touch points are getting humanized
Welcome to the age of Customer 3.0. The type of customers who are not defined demographically, geographically or economically, but by their evolution to adopt new technology to meet their banking and transacting needs. To serve the evolving customer landscape, the omnichannel approach is the need of the hour.
The focus of the omnichannel approach is on contextual banking to create a holistic experience to enable customers seamlessly transact. The omnichannel concept of engagement banking refers to providing a single experience for banks’ customers across multiple channels. In this approach, irrespective of the channel chosen by the customer, the functions, services, capabilities and experience should be the same. The omnichannel approach also supports bankers on the go, by providing agility, flexibility and secure access to information and systems anytime, anywhere, through any device.
For instance, if a customer wishes to open a new bank account, the banking representative could use an app to fill in customer details, an e-signature could be captured, digital documents could be securely uploaded and verified, and a new account could be opened within minutes using minimal paper work. This is what omnichannel integration facilitates.
What is required is an intuitive, real-time omnichannel interface that uses transformative distribution technology to provide an exclusive business banking software to create that seamless experience that the customers desire.
At this year’s Sibos, iGTB’s core comprehensive products are being showcased, from Corporate Banking Exchange, Customer Onboarding, Payments Services Hub to Liquidity Management. All these modules are available, through intuitive real-time omnichannel interface, renowned Corporate Banking Exchange (CBX), powered by Canvas Technology – a transformative distribution technology.