Banking Goes Beyond Cash with Digital Engagement

(The COVID-19 outbreak has challenged all sectors across the globe. What opportunities do you see amid for digital transformation in the banking sector?)

Branch Banking:

Banking services are provided by banks via a large network of branch sites, known as Branch Financial. Deposits, withdrawals, and other services are available at any of the bank’s 10 locations throughout the city.

Digital Banking:

A digital banking experience is just a web-based version of the conventional banking experience. When it comes to basic tasks like establishing and running a bank account to more complicated ones like managing investments, banks throughout the globe have been steadily moving online, said Alex Fopiano. Alex Fopiano is the Assistant Treasurer at Brookline Bancorp. He was hired by the Treasurer of Brookline Bancorp and originally was the Treasury Manager. In that role, he was responsible for a 2-bank holding company and managed three treasury analysts. Mr. Fopiano graduated from Bentley University’s McCallum Graduate School of Business in 2010 with a Master of Science in Finance and received his B.S. in Finance from Bentley University.

Customers are nevertheless urged to do banking transactions through their bank’s website or mobile app, despite the fact that physical branches still exist.

Reason Behind Turning Digital:

As banks become more and more digital, what’s the rationale for this trend There are several factors that might explain this behavior, but the following patterns are likely to be the most significant and influential:

The Development of New Technologies:

In less than a decade, new technologies like mobile phones and tablets have introduced a new dimension to banking’s altering role.. Banking is also plagued by the introduction of new models and new entrants.

Financial services activities by technology enterprises and start-ups have grown significantly in recent years, continually innovating and competing with banks and other financial institutions in many sections of the financial markets or operations that do not explicitly need a banking license. Banks will benefit from this as they reconsider their processes.

The Change of Customer Expectations:

New consumer expectations are also a factor in the shift. Ten years ago, clients were quite different from those they are now. As time passes, people’s expectations for goods and services have evolved significantly. The population born between 1977 and 1994 and the population born in the mid-1990s to early ’00s are both digital natives, having grown up in a platforms and digital environment in which options are almost limitless, making them more susceptible to digital marketing than previous generations.

To get the finest customer experience or to profit from the most popular content, both generations depend significantly on smartphones, apps, and even wearable’s.

For them, the Internet and social networks are a constant source of knowledge and guidance. Digital customers want more options, instant availability, and direct access to information and services that are ready to use. Banking goods and services must be quick, safe, easy, and convenient for customers. Rather from only providing transactional support, they want banks to become trusted advisors who are able to understand their customers’ requirements.

How COVID-19 Pandemic Impacted Banking Sector:

Because to COVID-19, consumers’ expectations and behavior have altered, as well as the assumptions that supports operational models and value chains. COVID is unstoppable at this point. Because of uncertainty, consumers who were already searching for ways to save money have a greater drive to do so. The “need” to sign paper contracts in person was emphasized by many incumbents before the advent of digital distribution and interaction. Also in the financial services business, there are call centers, self-service websites and more.

Traditional banks, on the other hand, don’t even have a dedicated digital customer engagement department. COVID, on the other hand, does. By reducing the need for a physical branch, digital engagement and relationship management may help banks enhance their ROI and client lifetime value (LTV).

Because of this, retail financial services have limited incentive to develop strong digital relationship and engagement KPIs. An example of this is a banking application that is not designed to be used on a daily basis. These gadgets’ principal purpose is to facilitate transactions.

While this was not originally intended, the coronavirus has pushed us in the direction of making banking more user-friendly. Do we have any ideas for improving the lives of our customers? When we get to know our clients’ financial requirements and objectives, we can better assist them in achieving their financial goals.

Customers are needed to sign paperwork in order to conduct 45 percent of branch transactions and interactions, according to a survey. Internet banking, on the other hand, has changed all of that. Competitive pressure from the likes of COVID has led to a rise in expectations for digital enablement.

Facts & Figures:

Global mobile banking app downloads rose 20 percent in Q2 compared to Q1 as a result of the epidemic. DAUs (daily active users) of banking applications also rose by about 6 percent over this time period.

Since the beginning of the COVID-19 problem, 35 percent of clients have chosen internet banking, and 30 percent have increased their mobile banking use. Even more telling are the totals for mobile banking.

According to the Mobile Banking Competitive Edge Study conducted by Business Insider Intelligence, 89% of customers, including 97% of millennial, utilize mobile banking.

The Future of Financial Services: Digital Customer Engagement

Realizing the value of Digital:

Banks can generate value by utilizing digital capabilities in four distinct ways.

1. Digital technologies improve a bank’s capacity to communicate with its stakeholders, including customers, staff, and suppliers. Here you can find everything from digital interactivity and payment methods, to mobile capabilities, to the opportunity to promote banking brands on social media.
2. Another example is the use of big data and advanced analytics in digital to enhance and broaden decision-making. More than 130 people attended this year’s 28th annual convention. The most innovative banks employ cutting-edge analytics in sales, product design, pricing and underwriting, as well as in delivering really unique client experiences.
3. Streamlining low-value, low-risk operations by digitizing and automating them is another way that digital creates value. A more efficient workflow that does away with paper may be achieved by using process apps, while imaging and straight through processing help to ease regulatory compliance.
4. Crowdsourced support, social marketing, and “digitally-centered” corporate strategy are all instances of digitalization.

Each of these digital value-creation strategies can be applied to every bank function, which is wonderful news for CEOs and other decision makers. If you’re looking for an easy way into the digital world, you’re not going to go far with this. To be effective, cross-bank efforts need to be prioritized, resourced, and coordinated. Digital native skills and cultures, which include the following, are still being developed by most banks.