Retail Banking: Embracing Digitalization for Enhanced Customer Experience

Banking CIO Outlook | Thursday, August 29, 2019

Retail banks are going digital to accelerate growth, and novel technologies are intensifying the customer journey as a component of the change.  

FREMONT, CA: According to a survey from Accenture, 87 percent of the banks have a formal, long-term plan for digital innovation. George Westerman said, 'When digital transformation is done right, it's like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.' Digital transformation for banks focuses mainly to improve efficiency and controlling costs. The financial services sector is going through climactic changes as a result of changing customer habits and the digitization of society and business in general. In retail banking, cost reductions improved top-line revenue, and reduced risk remain is the critical drivers for transformation. The digital changes taking place in finance are handled by many prevalent challenges and opportunities across the sector.

The need to integrate distribution channels is vital to optimize efficiencies, mitigate costs, and consistently serve customers. Banks identify opportunities better by studying at the overall customer life cycle, enriching experiences, and enabling enhanced customer experiences. For most retail banks, digital transformation is a priority, but in the area of digitization, a lot of work still has to be done. Focus on customers, generating new offers, segmentation, cost reduction, and many factors are there that is the ultimate priority for the retail bankers. Reducing costs and handling risks remain essential, but digitalization has become crucial. Digital innovation disrupts banking, and conventional banks are yielding preference to online branches. However, the real challenge is not embracing new technologies but adopting a digital culture.

Digital adoption provides enormous potential for banks to improve efficiency, optimize processes, and boost customer convenience with innovation, among other advantages. Banking is evolving faster than ever before, and so are its customers. Considering consumers' fast-changing behavior, delivering exceptional customer experience is no longer something that can be put on the back burner. Customers want the ease of use, simplicity, and responsiveness. They are most likely to switch their provider if their requirements are not met despite the perceived complexity of the process. Adopting the technologies and emerging strategies to onboard innovative technologies and services reaps the rewards of digitization and rank banks towards success.

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