Digitalization has changed the way we do everything in life. If it’s about purchasing a product or looking for the next holiday destination, we do it all online.
Needless to say that this past year has accelerated digitalization, even more, pushing those brands that did not have a digital platform to create one, and to change the way they interact with their customers.
Customer experience changes and goes completely online. We are today able to purchase, review a product or service, get support, and even submit documents, online. And as there’s no limit to what we can do with a mobile or laptop, and internet connection, all businesses need to learn to go digital.
What can banks do with digitalization?
Online banking facilitates how customers can connect and communicate with banks. Today if one needs to open or close an account, it is not necessary to physically go to a bank anymore. There are so many banks out there that allow you to open an account by easily going online, filling a form, and even go through the document recognition process using online validators. More and more banks are currently closing their branches and moving to a fully-online service.
HSBC is closing a further 82 branches as the Covid-19 pandemic reinforces its strategy to move customers to digital channels. The bank said that even without the pandemic effect, 90% of all customer contact is now over the phone, internet, or smartphone. It also said more than 100,000 customers a week interact with it on social media. – ComputerWeekly.com
But let’s analyze from a closer perspective, which are the main advantages for you to provide online banking services.
1. Less paper, less fuss
We can say that the very first perk is that digitalization allows you to go paperless. This doesn’t only mean that you can help save the environment, but also so save a lot of time. Moreover, digital paperwork reduces the risk of making mistakes and helps you organize customer data easily.
2. Improved customer support
We all want our customers to be happy and to achieve that, we need to support them when they need it the most. With digitalization, people got used to receiving support much faster, more transparently.
It’s not necessary to call a number and wait in line for a long time to receive support. It can happen through online chat, customer support through the app, and even social media, as HSBC said. Immediate support also translates into happier customers and reduces miscommunication.
3. Stay tech relevant
As said before, there are so many banks advancing with technology and using online banking with their customers. Technology and improvements are one of the main factors that influence the choice of a customer. What customers want is to be able to do things faster, to process bureaucracy and documents in an easier and faster way. The more services customers are offered, the more likely they are to choose one bank over another. Some services can for example be saving, taking care of their financial well-being, investing and why not also predicting future expenses.
Whenever a customer will need to open a new account the first thing they do is comparing Bank features online. So make sure you stay tech relevant and provide enough features to be listed in the comparison tools.
4. Easy to communicate and educate
A simple push notification can allow you to easily communicate with your customers, send them the news, new features of your digital banking, and even educate them on some financial aspects.
Let’s assume for example that you are building a series of articles that are aiming to educate your customers about financial wellbeing. Instead of using the conventional methods, you might also want to send a notification on the mobile app that allows them to directly click on it and read. Easy, handy, and customer-friendly. That’s the way you want to go.
5. All data in one place
This might be something that we are taking for granted. We need to remember how important data is and how much it can tell us about our customers and their behavior. This doesn’t only help you understand your customers’ preferences, but allows you to also plan improvements and next strategic steps.
By using the right tools, you can for example track the buttons and the clicks on your app, understand what works and what doesn’t, and capture common behaviors on the app from customers.
6. Behavioral predictions
What if the collection of data that we listed in the previous point, could go one step further and allow you to predict customer behaviors? If you integrated artificial intelligence with your digital banking, you could predict your customers’ preferences, needs and easily plan the next customer engagement moves. Many banks are currently leveraging AI technology progress and including these features in their online banking.
If you’d also like to know how, get in touch with us for a demo.