Banking organizations are no strangers to embracing technology disruptions. With the kind of growth the banking industry has witnessed in the past decades, it could be argued that it’s in a much better position than most to survive and thrive in the digital age. However, certain processes in the baking sector are still carried out much like it was decades ago. Without embracing innovative disruptions, organizations might find it challenging to succeed in uncertain times.
Poor customer service and slow response times
Traditionally, customer support teams in banking organizations spend much of their time and effort repeating the same information every time during call support, resulting in slow response times. As a result, organizations can’t respond quickly enough to new opportunities and address other emerging customer issues. Unfortunately, only a handful of organizations are successful at dealing with customers better. With growing pressure on organizations to provide the best level of customer service at the speed of business, Chatbots has emerged as an opportunity to transform more quickly.
Cut-throat competition from digital players
Traditionally, banks have faced little competition from emerging players inside the industry due to loyal customers, regulations, and capital requirements. As a result, they had significant discretion in everything they do. However, as with other industries, the pandemic has accelerated the digital transformation within the banking industry. With digitization came competition within the banking sector. With internet proliferation and democratization of financial services, banks no longer compete with players within the traditional banking industry but compete with fintech firms, virtual payment organizations, and peer-to-peer lending and online lending platforms.
Obsolete business management applications
Many major banking organizations and financial services have, over the years, acquired obsolete business management applications or siloed systems that don’t keep up with the new business requirements and technology requirements. Organizations using antiquated business management applications or siloed systems are likely to miss out on growth opportunities, especially from digital channels and digital efforts that generate more revenue and value. When it comes to innovation in the banking sector, the lack of a digital approach is a barrier to effective digital transformation.
Digital banking use cases in the banking sector
Conversational AI platforms- Fintech offers Chatbots, virtual voice assistants for improving customer service
Poor customer service and slow response time is the last thing any business would desire. However, unfortunately, it is also a fact that customer acquisition is expensive. Also, no customer would ever like to explain themselves twice to customer care executives or stand in a queue waiting for their turn in banks or get stuck in banking apps and being unable to quit them.
With the development of chatbots, virtual voice assistants, conversational interfaces. Today’s Conversational AI platform options provide a level of customer experience and customer satisfaction that would have been unheard of only a few years ago. When it comes to providing a smoother banking experience, Chatbots replaces the need for skilled customer care professionals to be present 24/7 for routine banking transactions. That’s right–they’ve got 24/7 support to support basic account operations, including account balance, getting statements, transfer funds, pay utility bills, loan-related queries, and insurance-related processes.
Maintaining a competitive edge with customer data analytics
As banks in the financial industry continue to face challenges in future-proofing their businesses, banking institutions are exploring fintech as an opportunity to automate decision-making and improve company efficiency. Banking organizations need faster insights to identify market trends and gain an edge over competitors. Therefore, they leverage customer data analytics to gain a 360-degree view of the customer journey to customize their financial products and services. What’s more: technology will deliver faster insights for banks to address customer pain points at various touchpoints. This will result in unifying all disjointed systems for an enhanced customer experience. As a result, banking customers can do more in less time.
Omnichannel digital banking
Banks can innovate to move digitally forward and capitalize on the full potential of Omnichannel digital banking. According to the recent Gartner CIO Survey, CIOs believe that a greater portion of the business will come through digital interactions, and more businesses are pursuing digital channels to introduce digital products faster. Banking institutions need to be agile in the face of change. Fintech solutions can enable banks to connect between existing siloed channels and provide a seamless experience across channels. Integrating disparate channels and data sources enables banking organizations to gain actionable customer insights. This will help them to tackle the challenge of data-driven disruption. Banking organizations realize how the speed and power of analytics are helping them overcome one of the most significant barriers to omnichannel digital banking adoption.
FinTech Trends in 2021
Online and mobile banking is here to stay
If the rising adoption of online and mobile banking in millennials is any indication. It is likely that the brick-and-mortar banks might eventually lose relevance. According to Gartner by 2030, 80 percent of heritage financial services firms will go out of business. The cashless economy is driving digital transformation faster than ever, with more banking organizations adopting digital banking.
Competing with non-banking firms
Talking about long-term changes in the banking sector, competing with non-banking firms will be the new normal. Though these non-banking institutions may not enjoy the same status as banks, they will continue to function as conventional banks. However, on the other hand, non-banking firms in the banking industry reveal how technology-centric financial services organizations are stealing the advantage.
Mobile Payments and Digital Wallets
The coming years will see a sharp rise in investments in mobile payment and digital wallets. However, a robust roadmap is vital to realizing the full promise of Mobile Payment and Digital Wallet technology. In addition, banks need to capitalize on advanced digital capabilities to address the growing questions around security.
Summing up
It’s safe to say that the future of banking appears promising; however, the evolving customer expectations and shifting customer sentiments demand an agile approach that flexes to the evolving situation. Banks organizations can gain the upper hand by leveraging digital transformation and customer engagement in new ways.
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