Technology today isn’t a separate field– it’s been integrated into all industries at every level. It’s the same with banking– digital transformations are picking up speed as retail banks try to catch up with the prowess of lending and financial companies that are already online.
Personalization is everything. In today’s fast-paced world, it’s so much more. In fact, 33% of consumers exited a professional relationship because it was lacking personalization. Each consumer wants to be treated ‘specially’ in the banking sector, and while that once seemed highly impossible, it only takes a bit of strategic thinking and digital advancements today.
Compared to other industries, including the automobile and e-commerce industries, the banking sector is often set back in its digital advancements by archaic regulations or prevalent concerns about privatization.
However, all that is set to change and banks are gearing up to truly revolutionize existing systems to veer them towards the future, successfully. In fact, a lot of retail banking courses focus extensively on digitization, while new-age banking training is making its rounds to up-skill existing employees. This is how digitization aids in hyper-personalized banking services:
Introduce relevant offers and pre-approved loans
Retain banks often have most of their customers’ data in secure databases. These were collected with consent from clients, so using algorithms to analyze their demographics and transaction behavior can be a leap in service offerings. This also saves time in deciding on which loans suit the client and prevents sending generalized offers that may or may not result in a conversion. It’s also an excellent way to target pre-approved offers at the channel they use the most, be it mobile, internet or face-to-face banking.
Improve communication with customers
Communication is key, especially so in the retail banking sector where personalization and individual involvement is valued above all. Digitization gives banks the scope to expand their communication services and protocols. This could be through chatbots on internet banking sites, personalized FAQs on a mobile device or even better servicing at bank centers.
Digitization also makes communication faster and more accessible. Back in the day, customers had to queue up in banks to get questions answered. Today, the use of voice-powered AI Assistants and chatbots is on the rise, making it that much easier to quickly get an answer to a question.
Provide value beyond expectations
An added benefit of digitization is the avenues it opens up to be one step ahead of the customer’s ask, always. Even though doing as the customer asks is a good thing, it’s not enough. To be ahead of the game, banks can use digitization as an opportunity to predict what their customers need even before they need them, or when they didn’t know they need them. Going beyond the traditional customer journey, especially as newer open banking systems come into play, will slowly but surely become the USP of retail banks– it’s time to get a headstart on it.
Ensure transparent processes
With digitization bringing banks into the hands of their customers through cellphones and internet banking, customers can now be a lot more involved in matters of their finances than they were before when traditional banks handled everything. When it comes to data and transparency, digitization is a double-edged sword. Financial institutions are still one of the most trusted industries but one misstep could lead to loss of data when this data is stored using technology. However, digitization also gives banks the golden chance to be transparent and accountable, thereby increasing their trust levels among customers.
The leap from commoditization to personalization is being led by digitization. As new wave technology permeates all industries, banks will use this opportunity to bolster hyper-personalization over the next decade. The bar continues to be set higher by the ever-demanding consumer, but with the use of data, advanced analytics and effective new-age training, traditional retail banks will slowly but surely change for the better.
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