The digitization of the banking sector

While the pandemic has made digitalization a necessity For the banking sector, most banks and financial institutions had already taken some steps in this direction in recent years. Many banks had already started to include digital in their service offering.

In fact, digitalization is the conversion of data into a digital format with the adoption of technology. Banking digitalization reduces human errors and thus increases customer loyalty. In fact, adopting digitalization is very important for the banking sector. By adopting digitalization, banks can provide improved customer services. This provides benefits to customers and saves time.

Today, people have access to banks 24/24 thanks to online banking. Managing large sums of money has also become easier. Digitalization has also benefited customers by facilitating cashless transactions. Customers no longer need to store cash and can make transactions anywhere and at any time. But before that, if you want to make money with 1XBET without investing, click here to create your account and benefit from 50 FCFA to start. Promo code: argent2035

What is bank digitization?

La digitizing stands for digital transformation, a term that suggests doing things differently, with the intention of doing things better. We are talking about a fundamental change in the way banking operates and delivers value to customers. A true digitalization strategy involves technology, people, processes and the way things are done. There is always a technological element in banking digitalization, but the journey also requires transforming the organizational culture of the bank.

With banking digitalization, people are expected adopt new technologies and adapting to new ways of working. This can be tricky; humans are notoriously resistant to change. Digital transformation in banking is forcing banks of all sizes to scramble to adopt new technologies and services at every level. But what does digital transformation in banking really mean?

The digital transformation of the bank largely involves the shift to online and digital service delivery, as well as the massive number of backend changes required to support this transformation. To be successful, the reasons for and benefits of the transformation must be clarified throughout the organization. The “road map” must be communicated and the necessary training and coaching provided. Here are the key success factors for digital banking.

The key factors for the success of digital banking

Digital transformation banking allows you to create a more cohesive and personal digital customer journey. Creating a digital customer journey means taking steps to integrate everything into a single online platform so that the customer is treated through the same tools, sometimes by the same people, and with the same information throughout the process.

Here, practices such as changing the organization of teams, integrating technicians into sales teams and possibly merging marketing and retail into the same team can help a lot. To succeed in digital digitization, here is what you need to act on:

✔️ Redefining the customer experience

Above all, putting customers and their needs first is key to creating sustainable solutions. Banks should consider co-creating with customers frequently and often throughout the lifecycle of a proposition.

✔️ Adopt a mobile-first vision

From contactless banking to online account access, customers expect products and services to be accessible from mobile devices, at any time. Today, banks operate digital-only models and offer their customers a full range of banking services on smartphones (Barnes, 2015).

In this way, banks reinforce their role of customer advice with the distribution of communication applications like WhatsApp, Skype, etc. They reinforce their interactions with their customers through online channels (Japparova and Rupeika-Apoga, 2017).

✔️ Develop a data personalization strategy

Building solutions means knowing what data you have, what data you need, what questions you need to ask that data, and how to interpret the answers. Centralization of existing data sets is essential. In fact, modern banks have more data than ever before. The more digital services they offer, the more data they automatically collect.

This data allows them to make huge strides in updating and managing their operating model, customer service, and even their business strategy. Data allows them to understand customers in new ways, using this information to identify opportunities, optimize products and services, and automate solutions. Automation and the use of digital solutions such as chatbots and Artificial Intelligence are also part of many banks' digital transformation strategies.

✔️ Selecting the right technology platforms

When integrating new services into operations with extensive legacy processes and assets, and subject to high levels of regulatory scrutiny as a bank, choosing which platforms to use and how to use them is critical. For a banking executive today, there are myriad issues to address. There are economic, operational and regulatory pressures to manage in the short term. There is also a complicated debate about which technology will be the most disruptive or the key to change.

For example, some believe that the cloud offers the biggest opportunity for banks. It delivers the sophisticated, personalized, real-time services that customers and clients expect, while for others, AI offers the most benefits.

Yet banks have a fantastic opportunity as they have retained customer trust and should have the capital to implement the right strategy. Cutting-edge technology and a digital ecosystem that will reduce costs while delivering better products and customer experiences will be central to success.

How to benefit from the digitalization of banking?

Here are some ways banks can improve digitalization to increase their profits and provide their customers with the convenience they need.

✔️ Partnership with technology companies

As tech giants like Amazon and Apple make forays into consumer finance, they need someone to handle complex banking processes on the backend.

For banks, this opens up the possibility of technology partnerships and access to the strong customer base of these companies. Even if we ignore the role played by tech giants and access to the strong customer base of these companies. Here are the main advantages of this approach:

• Banks can leverage their existing customer base and operational capabilities
• Improve customer engagement
• Capture more data to better understand their customers and introduce a higher degree of personalization
• Banks can gradually build an ecosystem of services their customers need to add new revenue streams and prevent their customer base from shifting to corporations fintech emerging and digital businesses.

✔️ Invest in automation to improve convenience and reduce costs

Automating various processes can reduce costs and streamline operations to deliver more value to customers. It also minimizes overhead costs by reducing reliance on human staff, which can be passed on to customers in the form of reduced costs. For example, in the time of COVID-19, A small convenience like on-demand e-statements or online account checking can save everyone time and money and reduce the risk of infection through contact.

✔️ Foster innovation

Necessity is the mother of invention, and innovating new ways to reach and care for your customer base is a must to stay competitive and help your loyal customers during the pandemic. Today, most financial institutions use sophisticated technology for maintenance operations like customer support. However, it is necessary to channel some of this budget towards innovation to create new products that meet emerging customer needs.

For example, Due to the current social and economic crisis, many customers have shifted entirely to electronic payments. Some are struggling to repay their mortgage, while others are scrambling to secure emergency cash and insurance products to cover future costs. With access to rich customer data, banks can assess transactional and behavioral data to offer personalized services to their customers. Some measures include:

• Increase limits online transactions
• Offer relaxation in IMEs, repayment holidays, mortgage refinancing, etc.
• Extension of emergency credit services such as low-interest personal loans and access to fixed savings accounts
• Monetize credential datat insightful reports and benchmark analyzes for various industries

Banks can also use the data to create personalized and engaging web stories to promote the above-mentioned products so that they can be discovered by those who need them.

✔️ Improved data management

Over the past five years, data collected by various organizations, including those in the financial sector, has increased due to the digital transformation of the sector. However, only a small fraction of this data is used due to operational silos in most organizations.

As any expert will agree, this untapped data has the potential to help businesses move faster in a customer-centric manner. To improve data management, financial institutions and banks must create a unified data management approach that consists of a centralized data hub connected to a robust management platform.

In addition to unifying data and ensuring its accessibility, it is also essential to put in place appropriate security measures for the protection of user data.

Summary …

Investing in thoughtful digitalization can help banks grow revenue while also helping customers impacted by the current pandemic. From discouraging branch visits, to offering online loan approvals and account opening, to educating people on the digital bank so that they can benefit from the services provided by their banks.

It may be wise to start by listing unique growth opportunities that fit within a bank’s current resources and can be reasonably leveraged. Instead of blindly investing in areas such as design, innovation, data analytics, and personalization, it is prudent to identify and start with the areas that will yield maximum returns with minimal investment for best results.

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