How technology and customer behavior are changing digital channels in banking

Financial services deal with structured quantitative data more often than other sectors, such as healthcare, making it simpler to digitize and automate procedures. This has two sides to it: Compared to other industries, financial services institutions can have more successful digital transformation initiatives, but it is also simpler for attackers to launch digital-native financial institutions.

Banks need to step up their digital transformation efforts and adopt technologies like machine learning, automation, and blockchain given the numerous tech behemoths and fintech firms encroaching on their business. People have addressed all pertinent queries regarding the banking industry’s digital transformation.

This article from SMARTOSC Fintech will demonstrate how developments in technology and consumer behavior are altering digital channels in banking.

Digitization

Digitization is the first step in digital channels in banking. A business that primarily uses branches to serve consumers must first improve its subpar mobile and web banking offerings.

Companies in the financial services industry should adopt cutting-edge technology rather than outdated technology as they digitize. Although incremental progress has us extremely thrilled, it would be foolish to not employ the most advanced, mature technology in the digital transition. Of course, the organization’s intended level of technological maturity will rely on its strategy and expectations for the product’s use.

Automation

20% of corporate operations can be automated with current technology, claim McKinsey and PwC. RPA and intelligent automation can assist enterprises in the following ways:

Since technology eliminates human error, procedures should be made more efficient.

minimize operating costs by reducing the staff and concentrating on more crucial, decision-intensive activities.

For instance, the COIN acronym stands for Contract Intelligence and refers to a JP Morgan digital transformation program. The bank uses COIN to speed up document inspection and automate form-filling procedures.

Process mining tools can be used by organizations to find opportunities for process improvement, including projects for automation and digital channels in banking. In our article on process mining case studies, we provided many such examples.

Advanced analytics and machine learning

Due to legal and insurance obligations, financial institutions gather and keep track of consumer transaction data for an extended period of time. Data analysis may give insights into consumer behavior, enabling businesses to enhance the customer service they offer. 

Personalization is one frequent analytics used in the banking industry, for instance. Any financial product must first be promoted to the appropriate customers. By utilizing advanced analytics, financial institutions can reach out to the right customer at the right time with the right message and offer through the right digital channels in banking.

Digital financial assistants

Financial institutions, like other sectors, may greatly benefit from chatbots in terms of customer care. Digital channels in banking will be able to respond to client demands more quickly by using straightforward chatbot solutions. It may also be utilized by the clients as a financial counselor. A financial chatbot’s use may be to suggest investment possibilities depending on the savings account balance and risk profile.

Conclusion

Digital channels in banking must transition to online and digital services, and backend operations must adapt to encourage digitalization and automation. Banks should integrate the required technology to give their consumers an end-to-end digital experience in order to compete with digital natives. If you have any questions, please get in touch with us to get more information.