Enhancing digital customer experience boosts the business of BFSI segment - Krishna Raj Sharma, Director and CEO, iValue InfoSolutions
Today, traditional banking has taken a back seat. Physically visiting a bank for availing services is a thing of the past, with virtual banking readily being embraced for years now! Customers have further increased their online engagement with their banks with the onset of Covid-19, which has also led to accelerating digital transformation in the BFSI segment. Yes, the pandemic and social distancing continue to occupy a large part of the BFSI sector narrative too. Furthermore, the millennials and Gen Z, the digital natives are comfortable with omni-channel engagement with their banks, using smart phones, tablets or laptops, predominantly. Additionally, there is the immense digitization pressure to the banking industry from new-age fintech companies that are offering innovative methods to simplify money transactions, which are attractive to customers. API banking enables the bank’s service offerings to third-party organisations and the other way around as well. In such a scenario, providing the best digital customer experience (CX) will ensure banks to remain relevant and profitable. Evolving customer requirements have made banks to compete with one another in providing a unique experience, to retain old customers and gain new ones. CX and digitalization are key influencers for the bank to become successful. Digital transformation (DX) in banks has led to all processes getting streamlined, ensuring more engaging CX and a tangible reduction in cost as well.
Mapping customer's expectations is becoming more crucial for banks and its success formula lies in a robust digital CX strategy. Today’s customers want to be understood, demand fast service and want to feel safe, so a personalized banking experience, which will cater to all their needs should be delivered.
Next-gen technologies, such as video interactive content, chatbots that leverage AI, ML and IoT will enhance service delivery and higher transactional capabilities. Automation drives process efficiency further and reduces operational cost significantly.
Accessibility anytime, anywhere
With customers demanding omni-channel experience while accessing the bank’s digital platform, banks should provide apps, websites and video clips that are feature rich and easy to use. Availability across devices provides users the convenience and seamless integration between touch-points, encouraging customers to engage more with their banks. It is important for content and experience to be consistent across touch–points.
Establish personal data security
Digital platforms do pose the risk of cyber-threats causing anxiety for bank customers making them wary each time they use the service. Banks should work on building trust and have stringent cyber-security measures in place, keeping customer data secure. They have to upgrade and transform their processes to implement new technology, besides adhere to the constantly changing banking regulations.
Offer real-time support
Chatbots and video-chats provide assistance instantly across multi-functional systems. Apps are welcomed by customers as well. The more innovatively banks engage with customers, the more loyalty is established. By being constantly in touch with them banks can gather feedback in real time. Furthermore, any negative sentiment of customers or a poorly assisted phone call expressed on social media can adversely impact the brand. Banks should be able to receive automatic notifications, take quick corrective action and close the loop with the customer immediately. Customer feedback should also be integrated with employee feedback for better banking operations and business outcomes.
Delivering personalized services
By gaining visibility and granular insights into customers’ financial behaviour and spending patterns, banks can offer and suggest relevant products to them to cater to their unmet needs. Such services can provide a win-win situation for both customers and banks. Monitoring end-to-end customer journeys across channels will provide a 360 degree view of every customer for fruitful engagements. It is also beneficial to embed human touch and personalization in digital channels offering further comfort to customers.
Enables collaboration between banks and other finance companies
There is now a great collaboration wave in the banking industry as all products required by customers cannot be provided by one single bank. API banking enables the connect between banks and other companies in the BFSI space, e.g., insurance, which is a regulated licensed business by itself. In the case of some banks, where they can provide car loans but not car insurance, they can collaborate with insurance companies that offers insurance, thereby not lose the customer to competition.
Recognising the shift in customer’s expectations, prioritizing customer journey and acting accordingly with digital transformation investments will provide the much required flexibility, agility and speed-to-market for banks. All digital channels, customer service platforms and processes have to be upgraded on an ongoing basis to the fast evolving customer needs. Digital customer service plans should adapt to market changes and emerging technology trends while remaining customer-centric to stay ahead of competition.