The Evolution of Digital Transformation Services in Banking

Shifting from traditional banking services to the digital space is only one aspect of digital transformation services.

Digital banking
Image credit: Stephen Phillips on Unsplash

Shifting from traditional banking services to the digital space is only one aspect of digital transformation services.

The way in which banks and other financial entities engage with, appraise and reward customers has to change significantly. Understanding digital customer behavior, preferences, likes, opinions, explicit & implicit demands, and goals are the first step in implementing an effective digital transformation strategy.

As a result, banks need to shift from a product-centric to a customer-centric perspective.

Evaluating financial consumers in the digital world provides insight into today’s digital consumer interests. Consumers are increasing their standards when financial firms appear to be marching in cahoots. And if their needs do not meet, they are prepared to switch banks.

The Omni-Channel approach is the most efficient digital transformation model to perceive and transform the entity from traditional banking to digital banking.

Omnichannel includes more than just offering different ways of transactional options. It is a multichannel technique in customer relations that positions the customer at the core of the integration while maintaining a powerful connection between all the channels.

Perspective on the Banking Industry

In the current environment, offering customers a unique and valuable experience has taken precedence over solely offering financial services.

Even without asking the consumer directly, the banking industry must comprehend the underlying demands of the customer in the same manner that airlines or merchants realize the likes, dislikes, and choices of customers.

New technology and devices are providing multiple consumers with contact points every day. Banks must recognize how they use the information paths left behind every time they interact with devices or screens to improve their bottom line. Transaction completion has historically been the priority of most bank operations, including time and money, and is now a significant fundamental aspect of their overall business.

We think banks can benefit from how merchants perceive the customer journey of digital transformation services via an Omnichannel perspective while ensuring that quick, reliable, and accurate transaction processing is still essential. Banks should now reassess how they treat their consumers, perhaps from the perspective of those industries that place a high value on the customer experience.

Importance of Omnichannel

Presently, different channels operate independently, but it’s time to break down these barriers and upgrade the banking experience by implementing an omnichannel approach.

This strategy focuses on a single brand name that brings almost every consumer a customer-centric experience – based on their interests and activities – exactly like an individual bank would for each customer. The execution is so perfect that it becomes inseparably entrenched in the customer’s lifestyle.

Four Main Advancements in Banking Services

To offer customers cutting-edge financial services, digital expedite the creation of a decentralized digital world. Tech firms, retailers, telecom companies, businesses from other industries, and conventional banks can collaboratively benefit from services provided by digital transformation.

The following trends will define how banking services are available in the future.

Engagement Banking

Engagement banking is incorporating services into people’s lives and enterprises.

The expansion of the range of touchpoints that users interact with has been made possible by the internet. Previously, branches and ATMs were the only physical mediums via which banks and customers could communicate.

However, these communication points have substantially expanded thanks to the services of digital transformation and mobile banking. Access to necessary financial services through numerous, well-known non-bank services should be available whenever and wherever they choose.

Platform Banking

Platform Banking delivers plug-and-play banking capabilities.

Front-end services are the area of expertise for newcomers to the financial services industry. To fulfill the diverse needs of their customers and give a superior customer experience, they are concentrating their management resources on offering user-friendly services. This is due to the fact that new entrants give flexibility and affordability top priority when choosing their banking services.

Back-end service providers are creating banking functions on highly scalable cloud architecture to fulfill these needs. They provide these solutions to non-banks via APIs. Convergence in the pursuit of scalability is likely to occur since the flexibility and affordability of these platforms’’ banking services determine how competitive they are.

Online Banking

Online banking provides effective services based on technology.

There’s a huge potential in robotic process automation (RPA) – which enables the automation of routine tasks – and artificial intelligence (AI) technologies – with even more advanced computational power – to significantly change existing labor-intensive systems and processes in the financial sector.

According to a major U.S. financial firm, AI and other technologies will replace many banking professions due to the services of digital transformation. The top US investment bank has also cut the number of human traders working at its headquarters. Instead, Computer programs perform the majority of trading tasks.

Big banks in other countries have expressed ambitions to deploy artificial intelligence and other cutting-edge technologies to reduce staffing levels in the next ten years.

Social Banking

Social Banking is establishing new services without using mediators.

Digital technology eliminates boundaries between people and creates spaces for them to interact directly, even geographically distant. Additionally, it modifies economic growth by experiencing peer-to-peer exchanges without the use of mediators. Digital transformation services are gaining attention as a new form of economic activity that can directly connect various service providers and users via a platform.

Businesses must collaborate with reliable partners to co-create and take advantage of the business prospects brought on by services of digital transformation and capitalize on the emerging trends in banking services.

About Artha Solutions

Artha Solutions is a premier business and technology consulting firm providing insights and expertise in both business strategy and technical implementations. Artha brings forward thinking and innovation to a new level with years of technical and industry expertise and complete transparency. Artha has a proven track record working with SMB (small to medium businesses) to Fortune 500 enterprises turning their business and technology challenges into business value.