The Covid pandemic has been a wake-up call to businesses across the spectrum to transform themselves. This is more so in the case of the Banking and Financial services industry.
The pandemic has forced consumers to experience non-physical banking or online banking such as digital banking and contactless payment systems. This has made even the most technology neutral consumers realize the advantages digital banking has to offer. A natural progression of this social change is the increased desire to make digital interactions as personalized and seamless as possible.
The shift in consumer expectations has presented the banking and financial service industry with an opportunity to transform itself. The result of this transformation is the plethora of ways to connect with customers such as mobile apps, chat bot interactions or use of Data analytics to better understand consumer needs. This has led to a focus on hyper-personalization across all banking and payments experiences.
In addition, this desire on the part of consumers for personalized services has attracted non-banking players such as technology companies into this industry with offerings such as easy to use payment systems. This has only added to the pressure on traditional banking and financial services companies to spruce up their IT systems to not only compete but just to survive this onslaught from tech companies.
If financial institutions plan to keep up with – or better yet, outperform – the competition, they need to adapt to the digital age sooner rather than later.
To survive and compete in this new scenario, banks and financial service companies must either modernize their legacy systems or partner with technology companies to roll out new touch points to reach out to their customers.
For banks and financial service companies’ digital transformation and modernizing their digital infrastructure has many benefits such as reaching a wider spectrum of consumers and more importantly leads to higher customer satisfaction, growth and loyalty. In addition, it enables banks to automate administrative tasks and customise workflows, freeing them up to tackle more complex and challenging work. It brings about greater alignment between teams leading to rapid resolutions of critical incidents and faster customer service besides increasing organizational transparency.
By investing in a digital transformation, you’re investing in your company’s and employees’ capacity to be nimble, competitive and, most importantly, adaptable in today’s financial world.