Banks stepping up their game and refusing to rest on their laurels
First quarter results show hope for traditional institutions who expect moderate growth as banks get back on their feet. Banks are facing challenges head on, turning to cost-effective digital solutions to revamp their business model and how they service their customer base. As digital innovations transform the bank business model, traditional institutions must not lose their distinctiveness as the need for face-to-face customer service prevails in the industry.
Hundreds of bank branches have closed in recent years, as more UK customers opt to carry out their banking online, with 180 high street branches shutting in a 24-month period. Smaller and more agile banks are now taking a greater share of the market and digital-only banks are rising in popularity. This eliminates the physical element of banking and in its place, presents digital innovations that streamline all touch points of the customer journey. But over half of customers still desire in-person service when making big financial decisions and banks need to find a sustainable way to support this.
Bhupender Singh, CEO of global BPO Intelenet® Global Services, comments: “It is clear that today’s digital climate is transforming traditional banking institutions. The urgent need for mobile app usage is predicted to reach 2.3bn by 2020, but the role that technology plays in the industry should now begin to focus on blending human and digital innovations. This will result in services that are sustainable, cost-effective, and that maximise the expertise of their advisors. Technology innovations are a driving force which will re-shape the future of human-digital banking.”
Bhupender continues: “Although a large number of bank branches are re-assessing the number of branches, which is largely due to customers opting for online services, banks must remain attentive to the fact that not all customers desire or can access an online banking experience. This is an opportunity for banks to harness technology in a way that achieves the best of both worlds, and this means enhancing human service through the use of technology.”
“Next generation technology can direct financial advisors to the homes of customers for face-to-face meetings, which improves relationship-building between bank and customer. In addition to this, the cost of providing out of hours services can be greatly reduced while logistics processes are significantly improved. The banking business model should be greatly influenced by trends in customer demand, which means taking all customers into consideration and adopting a multichannel approach. Big banks should be looking to offer a balance of online and in-person banking, which goes hand-in-hand with interpersonal customer service.”