The status quo held dearly in the banking industry is changing thanks to digital disruptions. Banks are being asked by their stakeholders (including nations) to get lean and mean to counter competition. A health of a bank is reflective of a country's economic performance.
Instead of ducking and dodging competition, banks should devise new signature moves to be competitive. Here are some fundamentals that should be addressed to improve the competitive position of banks in the evolving financial services of today.
1. Listening to customer viewpoints
When you plan your digital strategy, it is crucial to know the viewpoint of your potential customers. Banks should make every possible effort to figure out the experiences and prospects of unique customers. They should actively listen,i.e actually working on customer feedback to bring about competitive features.
Unlike the traditional approach, the modern times don’t ask for siloed banking channels. Now, banks should reach out to the customer and must find out a way to unify the channels using CRM in banking. Having consistent engagement across multiple touch-points to get an idea of the expectations among various groups of customers, is one way to do it.
2. Creating an internal culture that is focused on customer experience
At times, many banks get a hard time incorporating digital channels in the bank’s culture. The main reason that makes implementations difficult is the possible threat felt by people supervising branches, transactions, and sales due to digital channels. However, it is the responsibility of the bank to educate its users that, instead of a threat, digital technologies can significantly enhance. Their banks should establish a chief customer experience officer who would ensure a culture that is focused on the customer experience.
3. Implement the needed technology
Technology has undoubtedly become the first step to any competitive strategy. Banks should redesign, reconfigure and upgrade their entire IT infrastructure extending from customer interface to back-end systems.The Bank which utilizes the latest digital technology to have delightfully engagement will stand out.
This can be in the form of Digital CRM or 'Bank-in-a-Box'. The deployment of pioneering technology in the functioning of the bank will not only ensure high customer experience but it will also improve the productivity of the bank workforce.
4. Intelligent use of customer big data
In pursuit of myriad goals, banks often overlook their most valuable resource. Customer information collected at various touch-points on different channels. Apart from relying on focus groups, interviews and usability labs, they can also utilize online analytics to track the behaviors of consumers.
One-on-one interviews may help them gather enough information on customer needs but online analytics will help with the understanding of latest trends in consumer behavior. This data can also be used for testing new products and services during your marketing programs.
In this industry of growing competition, the expectations of customers are also rising. Therefore, the main fundamentals for a bank to be competitive should contribute in the making of a customer-oriented strategy. Flexible and delightful customer experience should be offered within the branch and also in the digital world.