Top Digital Transformation Trends 2020 for the Banking IndustryVaibhav Bhatnagar
2020 is predicted to be an up-and-becoming year for the banking and financial industry. Financial Technology (Fintech) is focusing on improving customer experience by finding new opportunities in the banking sector, combing through new data processing and storage strategies with advanced analytics to take banking to a whole new level. Technological advancement can provide access to a lot of new or enhanced services and products for customers, opening more possibilities for better banking. Digital transformation trends are shaping up different industries in many ways, and the banking industry is right at the cusp of this digital transformation. Tech-savvy startups and established banking institutions are now accelerating their operations with the use of modern technologies. For instance, bill payments and account transfers have migrated mostly online through the help of the latest digital innovations.
Mobile users now have the convenience of online banking, from online deposits, cash-outs, bank-to-bank transfers, cashless payments of e-bills, even check deposits. These cloud-based applications help people save a lot of time and effort. Online payments are also available now for insurance plans, just with a few clicks of mobile phones. Digital banking services bring in rapid innovation and developments across all the channels and we can expect a lot of changes in 2020 and the coming years.
The banking industry is getting complex and more competitive. That’s the major reason why banks and financial institutions need to adopt digital technologies to deliver a great customer experience. There are several modern digital transformation trends and solutions that can transform the way banks operate. CIOs and stakeholders are thinking of new ways to engage the customers in the hopes of increasing customer satisfaction and loyalty.
Let’s talk about top digital banking trends for 2020 that are shaping the industry
Enhanced use of data
Data is everywhere now, and it will be prevalent for years to come. As more banking processes are going digital, source data will also increase. With the augmentation of data sources and technology updates, there are unique opportunities for storing the data in different formats. Banks and financial institutions need to proactively save and process the data to meet the customers’ needs. Marketers use customers’ data in different ways to get the right insights to plan social media activities.
Digitization across the organization
Implementing digitization across the organization can improve the customer experience. Banks can digitize their front-end and back-end processes to streamline operations. Banks should check if their manual backend processes are wasting a lot of time or running efficiently. Paperless offices are the newest trend these days that improve the efficiency of services. Modernizing the workplace and processes, therefore, is more profitable for banks in the long run. So bid goodbye to legacy systems and look for modern methods to deliver an excellent customer experience. Such current digital transformation trends will help your bank provide a seamless experience demanded by the customers.
Robotic Process Automation (RPA)
RPA is used by banks and financial institutions to amplify their efforts towards excellent customer experience. Customer service bots now help to give immediate customer support and answer usual and mundane queries, which helps divert human labor towards handling high-quality calls that may lead to sales or more difficult questions that need customer agent’s expertise. Banks would be able to improve productivity and reduce labor costs by adopting RPA. Robotic process automation can help users get quick resolutions for making smart decisions for their credit card applications and other tasks. Automating repetitive tasks without human intervention can be a good idea to boost the customer experience.
Banks and financial institutions can digitize their in-house processes by implementing the right systems. Such systems can be adopted by improving the efficiency of the employees and automate repetitive tasks. Workforce transformations can help to create a performance-oriented culture for banks and financial institutions.
With the latest digital transformation trends, the face of the banking industry would change more and more. The banking and insurance industry is operating and increasing at a much faster rate than it used to. Adopting the right digital transformation trends is vital to improving the customer relationship with banks and financial institutions. Once you have decided to implement modern digital technologies for your bank, you should look for experienced companies to help you with the right solutions. Explain to them your requirements and business objectives to stimulate new customers and enhance business growth. Look for the right solutions that ensure the maximum ROI. Talk to a few experts and find out new ways to gain a competitive advantage for your business. Transformation does not happen overnight. It takes a lot of concerted efforts coming together to bring the high-yielding rewards, and the banking and insurance industries know this quite well.