Retail banking digital transformation to serve the next generation

Retail banking, like other industries, strives to adopt modern methods and integrate digital technologies into its daily operations. This complex set of measures necessitates a methodical and calculated approach, particularly in the field of financial services, which involves large sums of money and high risks.

Let us take a close look at retail banking’s digital transformation to serve the next generation. 

Digital Transformation in Retail Banking to Serve the Next Generation

1. Omni-channel

Full-service banks of today must support multiple channels, both assisted and unassisted, internal and external. They must provide a consistent experience and share intelligent data in real time so that transactions on one channel continue seamlessly on another.

The emphasis has shifted from driving customers to lower-cost digital channels to reintroducing intimacy into these channels, such as chatbots and hybrid video chats with human and digital touchpoints delivered at scale. Some of the newer challenges include multimodal channel capability, which involves combining more than one channel into a single touchpoint.

2. Big Data

On a daily basis, retail banking deals with thousands of customers and their transactions. Big Data solutions will assist you in improving your capabilities and increasing client satisfaction and retention.

Clients expect payments and other requests to be processed immediately. When the system makes them wait for minutes, it creates a negative customer experience, which leads to your clients switching to your competitor’s services.

3. Fraud detection of individuals

When a manager reviews a loan request, it can take anywhere from hours to days, and there is no guarantee that vital information will be overlooked, resulting in a bad decision for the banking institution. Banks that have integrated KYC software, on the other hand, complete the validation process in minutes and make significantly better decisions.

You will be able to check and validate clients’ administrative and credit history, as well as optimize your loaning and other financial processes, depending on your access to official databases.

4. Internet of Things

Integration of the Internet of Things as part of your digital transformation will optimize customer service processes to the greatest extent possible. A customer tracking system, for example, will collect data on the movements of your customers and employees, process it, and identify areas that require improvements or reorganization to improve service quality.

5. Open banking

Open banking, a direct result of the disintermediation of the banking value chain, is now a global phenomenon actively promoted by regulatory regimes in 40 countries. It is all about banks collaborating with third-party service providers or technology developers in a flexible and seamless manner via open APIs in order to deliver beyond banking lifestyle services to the end customer.

Conveyance and home insurance bundled with mortgages are two examples, as is integrating a credit application on a real-estate website. It entails banks having access to well-populated and well-curated digital marketplaces in order to augment and extend their functional capabilities with innovative third-party solutions as needed.

6. Mass personalization

Customers want a personalized set of products and services that are designed and priced based on a 360-degree lifetime view, preferably through a self-service menu of mix-and-match options.

Personal finance management, which allows customers to gain insights into the spending and saving habits of their peers, is a popular way to personalize the customer experience.

Conclusion

As in most industries, digital transformation in retail banking is a costly and time-consuming set of measures. A financial institution must consider this fact and prepare the full amount of resources required for retail banking digital transformation to serve the next generation.

A comprehensive strategy and skilled specialists are required to maximize the benefits of digital transformation. Contact SmartOSC Fintech for helpful advice on digital technologies in your business.