Don’t fall behind the digital first banking wave

Customers increasingly assess financial organizations by comparing their experiences rather than the banks themselves. These enhanced experiences are powered by clever digital platforms, and the shift to a digital first banking has completely transformed the game.

Omni-channel banking

The conventional method, which uses several channels (such as the web, online, or branches), is neither efficient nor helpful to customers or employees. Since each channel requires a different set of procedures, content, screen designs, and other support, the same functionality is continually produced. The same work is completed several times, and the finished product is supplied to unrelated channels.

It makes more sense to do everything at once and distribute it to all channels through a single hub, rather than develop digital first banking business activities for each channel. A central Omnichannel digital banking platform is required to coordinate consumer interactions at all points of contact.

Modular banking

The Facebooks and Ubers of the world regularly release innovative new features quickly and with essentially no marginal cost. Without requiring extensive installs, disruptions, or financial ramifications, they are nimble enough to surpass customers’ expectations. They can simply scale up or down new offers as needed.

With a modular infrastructure in place, digital first banking may develop similarly – quickly and in accordance with client requirements. A bank with a modular design has the ability to actively create market realities with its customers, rather than just react to them.

Open banking

Since PSD2 and open banking first came onto their radar, banks have been concerned about the possibility of disintermediation. Opening up their APIs gives rivals and other parties unrestricted access to a bank’s data. But since consumer preferences have evolved, neglecting to effectively address open digital first banking will still result in disintermediation. Banks must simply participate, whether via a choice in business model or by regulation.

Digital first banking must make their APIs available, but they may also gain from using them by becoming customers and using the capabilities of third parties to enhance their services.

If they go about it cleverly, they may be able to improve their goods and services to the point where they surpass Uber in their region. The potential truly starts to exceed the hazard when things are seen in this manner.

Smart Banking

Effective segmentation, targeting, and tracking may be accomplished by combining data from many sources and evaluating it to provide useful insights. Since big data is the driving force behind all of these initiatives, digital-first banking must become adept at comprehending both their own data and that of third parties. 

A new age of personalization announces the need for fresh expertise to combine vast quantities of data from many systems into insightful, useful knowledge. Banks will increase their spending on data scientists in order to make use of all the data they now have and turn it into a profitable business and consumer value.

Digital first banking is already involved in a brand-new financial services sector, and in order to adapt and remain competitive, they must change the way they do business. They may do this by using omnichannel banking, open banking, modular architecture, and smart banking, which are four essential success pillars. The material in this post, which SmartOSC believes will be comprehensive, should answer all of your concerns. If not, please feel free to contact us.