Recommendation systems with purchase data and AI recommendation engines in retail are helping retailers to improve customer relationship and engagement.
Digital transformation is all about providing little extra benefits on online and mobility platforms. The classical banking approach needs to integrate digital speed and ease with human interference that is both practically accepted and aiding at important times in the customer success roadmap. Eight out of ten financial institutions accept that the implication of advanced digital technology will profoundly change the banking industry and will completely change the domain’s competitive scenario.
To create a flawless strategy on digital transformation, banks and financial institutions needs to consider the following best practices across the digital transformation journey:
Improving the customer success procedures
The road of customer journey currently getting much advanced. Banking and financial institutions need to identify what is crucial in the customer journey — which is going to make a remarkable difference and will create a major impact between contrasting consumer segments — and then work continuously to improve the consumer experience.
A digitized environment is not only implemented to fetch happiness to consumers, it also provides open hands to employees for more important tasks like cross-selling and maintaining a relationship while simultaneously lowering the operation cost by smoothing processes. Even changing just a few processes can create a major impact. According, to BCG one large bank modified its credit lending process and reduced the timeframe from application to funding in half, saving 30% in costs related with the procedure. Another bank tackling the same process saved nearly $200 million in tenure of four years.
- Implementing Data Analytics
Data analytics emphasize banks to get a better insight into their consumers, determining new and efficient business opportunities and lowering operational costs. Business intelligence and advanced analytics permit financial sectors to flawless predictions in loan defaults or to identify defaulters, consumers who are underpaying the loan etc. The use of granular cluster analysis is a good idea to analyze a consumer product mix and average for that consumer type and using these derived insights helps the sales team to pitch the product more efficiently and strengthening the relationships.
Banks and financial sectors can implement data mining for better expectations and customer targeting. On the promising side, generating important leads and establishing connections between current and prospective clients. Implementing behavioral analytics to recognize unsatisfied customers and then design separate action plans to retain these consumers.
- Redesigning the Operating Model
Consumers now a days want the best of both the segment: a digital outlook when they need pace and benefit and a human affair when they seek support and advice for more complex banking products such as investments or mortgages or trading in stock markets when they have a blockers or issues. BCG suggests that the percentage of customers who want an integrated experience has raised to 43% from 36.8% in 2015.
Banks and credit institutions that integrate human interaction with digital and owned functionality is what BCG terms a bionic network and can anticipate to a 15% growth in revenue, up to a 35% depletion in branch operation costs and up to 15% rise in customer satisfaction.