Home > Finacle > Blogs > Digital Transformation – Aligning Banks And Customer Journeys

Digital Transformation – Aligning banks and customer journeys

March 26, 2019 - Aarthi Krishnamurthy

All banks across the world have embarked on their digital transformation journey to be competitive and technologically sound in these rapidly changing times. Each bank has a different way of looking at digitization. It is safe to say that digital transformation is the process of digitizing a bank’s business to suit the evolving customer needs and demands. APIs, open banking, integration with Fintechs are some of the keys areas in the journey. By becoming digital, banks’ resources are put to use effectively at lower costs and quicker turnaround. With holistic digitization banks can provide seamless and enriching experiences to their customers. Digital transformation does not happen in a day, it takes effort and time to transform an organization for new digital realities. However, there is no upper limit for being digital as technology is a moving target and advancements are made each day where banks are put under tremendous pressure to keep innovating and upgrading.

Some of the challenges banks commonly face during their digital transformation journey are –

  • Mundane processes – Some processes which have been in place for years are difficult to replace quickly. For e.g. filling out forms at a branch for cash deposit, withdrawal. Although the introduction of cash deposit machines and ATMs has reduced the need for customers to go to a branch, but these processes are still prevalent.
  • Legacy systems – Banks run their businesses in both legacy as well as modern age systems. This creates challenges when they want to digitally transform.
  • Culture within the organization – People are the greatest assets for any organization. Generally, we find that people are reluctant to change. Since digital transformation is not a one-click process, it requires the support of all within the organization and demands a wholesome effort.

Whilst banks have their own challenges as they embark on the journey, the customers of the banks also face the heat during the transformation journey. Banks have a diverse customer base comprising silent generation, baby boomers, generation X, millennials and generation Z. Additionally, their customer base comprises people from urban and rural areas. A bank’s customers face challenges in terms of knowledge, interest and access to digital applications. As not all customers fall under these three areas, it becomes the responsibility of the bank to ensure their strategy is covers all the customers. Some points to invoke interest and knowledge among the customers include:

  • Interactive sessions with the customers to help them use digital applications and understand the journey banks have undertaken. Meaningful interactions can also help banks understand customers’ challenges, satisfaction and dissatisfaction, and thus serve to increase customer retention. It is well known that, acquiring a new customer is more expensive than retaining an existing customer.
  • Bank kiosks at prominent places to give first-hand experience to customers also enables acquiring new customers.

Banks today also provide their customers the access to banking services vide agent banking where agents are deployed to provide doorstep banking to the customers. This includes both urban and rural customers. With newer technologies like AI, automation, blockchain for payments, trade, loans, robotics in a disruptive mode, banks face newer challenges each day. They may have to come up with newer ways to combat the challenges and at the same time keep progressing on their journey of digital transformation.

References –

Related Blogs All Blogs

16169-1

Looking beyond and growing above the conventional
May 03, 2018

16291_shutterstock_522556048-1

More Things to Bank on
March 13, 2017

Leave a Reply

Your email address will not be published. Required fields are marked *

2 thoughts on “Digital Transformation – Aligning banks and customer journeys

  • Good point Aarthi. Banks need to consider the comfort level of all types of customers while embarking on digitization. Necessary efforts to be made to enable customers to have a harmonious journey with the Bank.

  • Yeah agree with you Aarthi. Being in IT side of the whole picture, it is hard to realize that the digital transformation journey is equally taxing to the customer. Good you brought out this point.

  Load more comments...