Know Your Digital Banking Customer

Know Your Customer

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:

  • Banking Technology – In order to ‘know your customer’, you need to provide exclusive interactions the way customers want, whether it is through mobile or online channels. New banking software programs should include customized features based on user profiles, preferences, online behavior and value added services.
  • Security – Digital banking should embed robust technology that provides security and protects information and communication. Security systems should protect users’ devices and the IT infrastructure of banks as well.
  • Private Banking – As the next generation of digital customers begin to dominate the market, private banks need to rework their strategies and adopt new technology. Customers extensively use new channels, devices and platforms to transact, find out about other financial products and write reviews. Banks need to keep up and engage customers through various channels and build a strong relationship through customization, personalization and customer-centric products and services.

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.

Create a Customer-Centric Experience with Cutting-Edge Banking Technology

Read more about the Top 3 Trends in Digital  Banking

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Corporate Banking On The Go. High-Speed Banking for Executives on the move.

It’s a bright sunny day, you’re enjoying a round of golf and you get pinged to approve a $4.3bn transaction. Think it’s possible? Yes, because there is an app for it.

Mobile corporate transaction banking is no longer an exception, it is a necessity. Banking technology has evolved with the changing landscape of customers, from corporate internet banking to corporate mobile banking.

As the corporate treasurers’ role transforms, what corporate banking customers want today is access to information and services, secure transacting and automation of processes to enable efficiency. Recognizing this need for change, banks are primarily focused on integrating and utilizing emerging technologies.

Mobility in Corporate Banking – Not Just Servicing the “Schedule-Stricken Senior Executive”

The benefits of mobility in corporate banking are not limited to authorization processes and engagement of senior executives or treasurers.

  • Streamline work processes – The introduction of mobility in corporate banks and financial institutions can help in streamlining processes that have evolved over time into complex procedural tasks. Complex banking operations can be simplified using new banking technology.
  • Monitor and make decisions in real-time– With a single view of the bank’s cash position, senior executives can monitor and make decisions in real-time, based on the dynamic environment. By using the mobile channel, the financial stability can easily be monitored and it can be secured with quick decision making.

The Skeptical Adoption of Mobility by Corporate Banks

As compared to the widespread adoption of mobility in the retail banking space, corporate bankers are still skeptical about complete adoption. Their main concern- security.

Is confidential data secure?

Are user-authentication procedures concrete enough?

With Bring Your Own Device (BYOD) being the ‘in’ thing, what if a device with sensitive information is misplaced?

While these concerns may be valid, corporate bankers need to take a look at the customizable features of emerging banking technology products. With embedded, robust security systems, high-speed performance, user friendliness, device and channel agnostic characteristics, adoption and integration of innovative banking technology is inevitable.

Technology companies are building new mobile banking systems specifically for corporate customers. They are introducing relevant functions that can be used on the go. Functions such as multi-device operability, workflow and transaction approvals, fund transfers, secure bank messaging and alerting. Corporate banks need to extensively adopt mobile banking technology in order to provide mobility for banking executives on the move.

Get to know how to utilize a high-speed banking platform to provide 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.

For Corporate Banking On The Go, Adopt Mobility with Innovative Banking Technology 

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