5 Resolutions for Digital Banking Success in 2018

Digital Banking Success

The world is changing and so are the needs of the people inhabiting it. To keep pace with this digital-driven world, every sector and industry is welcoming digitalization into its framework. The first half of the year 2018 has been good for the banking sector with friction-less mobile banking and wallet-linking being the two big advancements.

But, a lot more than that is yet to be done. Digitalization is no longer an option and the banking sector has stepped onto the battlefield too. Now you must be wondering why do I call it a battlefield, right? Well, let me explain! However easy it may seem, digitalization is not a simple process. So, if you are thinking that having ATM vestibules after every 100 meters and having a mobile app version is all that it takes to be a digital bank, then you are absolutely wrong. The process is way harder and is almost a movement in itself.

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From back-office operations to costs of installations, from automation of processes to hiring a digitally trained staff – it is one tedious and complicated procedure. Since the process is a long-term one, it is important that the banking sector sets attainable and quality goals and then try to achieve them.

Here are 5 promising resolutions that all the banks around the world have adopted for the approaching year 2019.

  • Smooth Digital Experience for Customers

Exactly how irritating is it to stand in a queue and wait for your turn in a bank? With our fast-paced lives, it is quite a dilemma to go to banks to get our money matter straightened out. The lack of a digital solution in the banking sector poses the biggest problem for the working class and the students who lead the busiest lives. And the only way out is taking a leave to visit the bank. Even for students, they have to leave their assignments and bunk classes to be able to visit the bank. In this era of chat bots and smart assistants like Alexa and Siri, customers have higher expectations when it comes to interaction with banks and other financial institutions. With e-commerce ruling the business world, we have already witnessed an influx of online shopping sites and payment applications. This makes it necessary that the banks follow the same footsteps and adopt more seamless transaction capabilities. Banks are therefore investing in mobile solutions for their customers and working towards making the existing facilities like Net banking smoother.

  • Front Desk Operations

In the coming year, banks will focus on consumers’ interaction with the financial institutions irrespective of the place or hour. Even today, you need to visit the bank when you want to open an account. To solve this problem, the banking world is working towards one same goal – automation of front desk operations. In the coming year, we can expect that customers will be able to open new accounts or complete applications using an internet connection from any corner of the world without having to be physically present in the branch. According to reports, banks should be digitally equipped so that every customer can initiate relationships seamlessly, from wherever they want and whenever they want. A survey was to find what most people complained about the changing of channels to make a payment for an online purchase. Based on their demand, banks are trying to alter the process of making online payments so that it can be done through a singular channel for the user’s convenience.

  • Back Office Processes

When we talk about digital banking, it is not just about the customer experiences. Although automation is going to make our lives easy, it is not going to come easily and there is a lot that needs to be done. With digital banking ready to take over the conventional methods, every person working in the banking industry must be capable of using various digital tools. They should also be personally committed to the digitizing movement. Be it front-office, back-office, senior executive, or managerial personnel – everyone will be given proper training so that they are equipped with the required knowledge. Banking sectors have understood that the key to a better customer experience is the back office operations. Therefore, banks have taken up the task of updating their core systems to provide a seamless digital experience overall.

  • Security Will Become More Robust via Bio Metrics

Security has always been a pressing concern for banks and even after many attempts, the financial processes could not be made secure enough. In 2019, one of the many focuses of the banking sector will be to add more efficient layers of security to their services. For this purpose, cryptology or what is more commonly known as Bitcoin will be soon replacing other forms of currencies. With virtual money in the market, the risk of fraudulent transactions will decrease and along with it the banks will be able to gain digital trust from their customers. There are several mobile applications that offer the option of payment using a bio-metric system via thumbprints. Customers are demanding the same thing to be incorporated into the banking system and banks are therefore planning to bring in features like facial recognition and voice prints for foolproof authentication. Very soon, the overwhelming number of one-time passwords that a user has to keep track of will be eradicated. In its place, bio metric authentication methods will be used to offer better security to the customers.

  • Updating Marketing Strategies

With the banking processes heading towards a different horizon, the need for a more digitally-compatible marketing strategy rises. As banks become digitized, the banking sector will have to come up with a marketing strategy that helps them promote the various online channels and tools. The biggest challenge should be getting the existing customers familiar with the new core processes. So, the word is that banks will be running awareness campaigns that promote their digital offering. They will have to give the customers a demonstration to convince them that the product is convenient and safe. Alongside, banks will also have to adopt a better distribution model that is digitally-driven.

In this movement, Artificial intelligence and Machine Learning have a huge role to play in helping banks automate their processes and improve customer experience. Although the need for a human will always remain, AI-driven banking systems like chat bots will comprise the major portion of the workforce. Since maintaining robots are supposedly 50 to 90 per cent less costly than offshore or onshore employees, banks are looking forward to investing more in AI to become increase efficiency, while maintaining strong customer service. If the claims are right, then the world of banking is about to see some mind-boggling changes in the coming year. And since it has promised to make our lives easier and smoother, we can do nothing but wait for the predictions to come to life. What about you? Are you looking forward to digital banking or not?

About Gracie Anderson 1 Article
Gracie Anderson is a Chartered Accountant by profession and an assignment expert by choice. She also teaches as a guest lecturer in several business schools and is an active blogger too through My Assignment Help.

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