Author: Shanthi Rajaram
I wrote a previous, cautionary blog — Digitization is Transforming Banking: Are You Ready? —about the vastly changing world of banking, one that has to keep pace with the speed and capability of technology as well as the increased customer demands for efficiency and customization. That’s a monumental challenge. Here’s the solution:
Digital transformation – the process where companies modernize legacy solutions and focus on securely automating the customer experience.
Banking today and in the future is about what companies can do to enhance the customer experience – not only what they can do but also how they do it – while being productive and profitable. This will include a widening array of personalized services – no more one-size-fits-all banking – and fundamental changes in how customers monitor, transact, and invest their dollars.
Here are several benefits customers will experience from digital transformation:
- Personalization of the customer experience, focusing on their needs and desires.
- More efficient and easily-managed services.
- Self-service enablement for greater customer control.
- Increased mobility so consumers to leverage capabilities anywhere and at any time.
- Eco-friendliness. For example, mobile push notifications will replace paper statements.
- Voice enabled interaction can be completed while driving, saving valuable time.
Here are some benefits banks will gain from digital transformation:
- Operational savings through reduction in customer service calls and routine transactions.
- Market penetration into areas outside the reach of a traditional branch.
- Digital interaction enables data collection and analysis for optimized product offerings.
- Continuity of experience increases customer engagement and potential added services.
- Better customer analytics ensures more targeted marketing messages with greater success.
- Increased automated processes like credit risk assessment and loan underwriting.
- Social media integration enables understanding of consumer behavior, trends, and patterns.
Digital transformation offers the bank of today and the future a win-win situation: customers are happier and more in control and banks are more productive and profitable.
What does your business need to start the digital transformation process?