FOUR PILLARS OF DIGITAL BANKING:
DIGITAL BANKING is aware that they no longer serve traditional customers, they urgently need to change their business model and remain relevant in the sector. These are the four pillars that can help banks redesign their business models with a handshake with fintech and makeup companies.
Omnichannel presence and UX experience
Omnichannel banking not only helps with smoother transactions but also optimizes the customer experience. And if you think that Omnichannel simply “provides customers more opportunities to interact with the customer, you’re getting the wrong impression. Omnichannel means continuous and consistent interaction with your customer. Or, as The Economist quotes
“Omnichannel is a strategy that allows customers to shop on smartphones, tablets, laptops and even in stores as if they were being served by a single entrepreneur with an impeccable memory and a mysterious view of their preferences.”
By adopting the Omnichannel strategy, banks can access any device anytime, anywhere, with a consistent experience across all channels. Omnichannel also enables interactions between different touchpoints with customers to gain insights, optimize conversations, and personalize.
Omnichannel presence, when integrated with excellent UX design, is like magic to your customers. According to statistics, 78% of the time customers spend on offline banking services is wasted. Because most UX design is not attractive and usable, many customers may not have a pleasant digital banking experience.
As experts have noted, there are seven core principles of UX design, including simplicity, mobility first, transparency, aesthetics, personalization, self-service, and holism.
Yes, banks and banks have evolved to act as intermediaries between the buyer, seller, investor, and investor. But the banking sector can also help in tackling societal challenges.
Starting an ethical bank is the first step to enable banking services for people who do not have a KYC or no branches nearby, or for people who have difficulty paying for banking services.
The next step is to provide affordable loans at minimal cost to support community members meaning they can start their own business, acquire new skills, or even develop business skills.
A good bank can also mean caring for the environment such as using mobile wallets, bank transfers, using a renewable energy source like the sun, KYC cardless bills and statements, and so on.
API and open banking
APIs are the gateway to contextual and innovative solutions. With its expansion, it is more cost-effective to provide comprehensive options for customizable customer needs, which may not be an option in heritage organizations. APIS can help banks find new distribution channels and also improve the customer’s digital banking experience. Furthermore, the product development process can be fast and the TTM [Time to Market] can be reduced with a modular architecture or API. This means that your app can respond to rapid changes, which is the current need. According to WRBR, 78.3% of banks rely on APIs to improve the customer experience, and fintech companies agree. APIs are essentially opening up new revenue streams for banks and fintechs.
With data and analytics, banks and fintech companies can better understand customers, identify business opportunities and reduce costs. With integrated analytics, financial institutions can anticipate defaults or identify consumers taking advantage of excessive discounts and restructure the price of products and services. By deepening the analysis, companies can compare the product details of a single customer to the average, which can contribute to personalization and personalization, which deepens the relationship between company and customer.