Moving from traditional banking to digital is a vital change in how banks and other financial organisations learn about, interact with and satisfy their clients.
Transformation starts with an understanding of customer behaviour, preferences, choices, likes, dislikes, etc. that leads to the major changes and improvements in the banking business processes.
Key drivers to make banking sector digital.
Technology Push. Technological advances offer a great number of channels for customer interaction. They are becoming the main differentiator for banking sector when it comes to customer experience improvement. It offers great opportunities for banks to better understand their customer needs while building the propositions.
Customer Behavior. Today’s consumers are more sophisticated and tech-savvy. They are looking for digital software solutions that are aesthetically pleasing, highly personalized and context aware. Each customer wants to get a unique experience from the banking sector to satisfy their specific needs that make the financial organisations change the way they are interacting in order to provide more advisory and highly personalized services.
Banks that choose software automation solutions to integrate their front and back offices can achieve end-to-end processing efficiencies that enable them to excel against competitors. These solutions provide an enhanced engagement level, customer experience and rapid response times that banks need to get a distinct competitive advantage.
Regulatory Compliance. Digital processing and automation allow banking organisations to incorporate business rules and use data sources to ensure regulatory compliance. Digital software solutions provide audit trail and transparency needed for reference in the event of an audit or suspicious activity.
The main business processes overview and software solutions implications.
Financial organisations should accelerate the digitization of their business processes and reinvent them reducing the number of documents, developing automated decision making, and dealing with regulatory and fraud issues to meet high customer expectations. Implementing intelligent processes into their day-to-day business operations can help accelerate growth and innovation.
Account Opening.
Opening an account is often the first interaction a bank or any financial organisation has with its clients. This process is clearly an important one when it comes to acquiring new business.
To build long-term profitable relationships with clients, banking sector should address the software solutions to streamline account opening processes that enable to strengthen customer relationships for increased loyalty and profitability.
Implications.
- Allow clients to apply for accounts through their preferred channel.
- Provide easy-to-understand gap analysis and what-if scenarios while account opening.
- Offer personalized, real-time help from online advisors regarding account types and available options.
- Complete the transaction with a personalized welcome package that clearly explains the terms of their accounts and includes compliance disclosures and tips for working with their accounts more effectively.
Loan Origination.
With changing and growing demand for faster credit delivery it becomes essential for the banking sector to simplify their loan origination process to achieve improved process efficiencies, faster loan disbursals and enhanced customer experience. Using software solutions helps in improving efficiencies, higher productivity and reduced operational expenses.
Implications.
- Faster new customer onboarding for greater customer satisfaction.
- Simplify the flow by re-engineering loan origination, servicing, and collection processes.
- Invoke a rule engine to decide an applicant’s creditworthiness for most loan cases.
Payments.
Consumer expectation for real-time payments facilitates and encourages the further development of digital payments experiences by providing cutting-edge software solutions – building diverse platforms and applications.
Demand for an optimised payments experience in terms of speed, convenience and multi-channel accessibility is extremely vital. Banks should ensure that they remain apprised of progress and developments in the consumer space if they are to anticipate and prepare for further changes to the payments business.
Implications.
- Adapt the payment process to modify supporting applications without extensive programming.
- Monitor to identify payment process breakdowns, react quickly and reduce human intervention.
- End-to-end automation of document-intensive payment processes.
Risk Management.
More investment is being made in technologies that provide safer systems to protect data. With the expansion of access points to a bank’s customer data, managing entitlement growth should be considered for every device and user. Banks should evaluate security and risk management tools, making it an integrated part of any deployed technology going forward.
Implications.
- Enhance security through near real-time risk assessment.
- Confirm the legitimacy of financial transactions before authorizing them.
- Identify and respond to potential threats before they impact the business organisations and customers.
Drawing a line.
Financial organisations should leverage new technology trends as customers are demanding tailored products and services, greater access and responsiveness, and increased transparency from them. Bank executives should find and hire a team of developers who can help implement digital software solution to simplify business processes and drive innovation.
Successfully implemented software solutions provide banking sector with greater efficiency and speedier customer services through increased business process automation that speeds up client satisfaction, loyalty and profitability.
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