The world will not be quite the same place after the COVID-19 pandemic is over. The sheer magnitude of disruption to business, civic and personal routines has left an indelible mark on each of us, our institutions and society writ large.
In the business world customer and public service providers have been among the most dramatically impacted. New state and federal mandates for person-to-person business interactions have been issued at unprecedented rates turning longstanding practices, assumptions and models on their heads almost overnight. This is especially true for banks and financial institutions who maintain networks of physical branches for in-person banking, and whose products and operations are among the most highly regulated.
During this time resources have necessarily been temporarily refocused on continuing operations as seamlessly as possible in a pandemic-reconfigured business environment. When the dust finally does settle and banks return to (near) normal operations they will find the same project and pain point challenges they had pre-COVID are still there, and still priorities. Likely even more urgent than before.
While the environment has changed the fundamentals of the banking and finance industry have not, and these institutions must continue to evolve and innovate, even while assimilating pandemic driven “new normal” practices, to thrive and stay competitive.
Forward thinking banks are starting now to look past the pandemic and revisit / revise their plans for meeting 2020/21 business and growth goals. Organizations that seize the moment and get a jump on post-COVID planning are the organizations that will have a head-start advantage in the “new normal” landscape and gain early momentum in growing market share while the rest of the industry works to get it’s post-COVID bearings.
Top industry trends forward thinking banks and financial institutions are incorporating into their business models this year and beyond.
Provide customers insights through predictive analytics
This is the ability to give customers just the right piece of advice in the moment they need it. Such insights can be provided by software which uses predictive analytics to monitor transaction data in real time and identifies user-specific spending habits to provide insights to customers. For example, an alert might say that given spending activity and upcoming bill due dates, a customer’s current account balance may not cover their expected activity over the next seven days.
Experience transformation displaces digital transformation
Digital transformation is pointless if it doesn’t transform the user experience, and design is how we create this experience. UX design and digital technology is used to take an awful user-experience and transform it into an unforgettable one that makes users happy and solves their problems. If a bank doesn’t focus on the best possible experience for the customers, it will most probably lose them to the companies that have customer-centricity as their top priority. Experience is the key in the digital age. The future of the banking industry depends on the ability to deliver a delightful experience to the customers.
Leverage AI to create a seamless customer onboarding journey
With many banks facing customer retention challenges, a less-than-stellar onboarding experience may significantly impact customer loyalty and referrals – and bank profitability. Faster and more efficient customer onboarding experiences from new-age technology firms such as Facebook and Amazon have changed customers’ expectations and raising the customer service bar. Banks also face stiff competition from disruptive challenger banks that offer seamless solutions with quicker turnaround time for tech-savvy millennials. AI is being leveraged to personalize solutions by aggregating and categorizing customer activity to provide an integrated view of customer’s financial history and design solutions to improve customer satisfaction.
Develop a customer-centric business model
Banks today have a simplistic understanding of their customers and a vastly complex product set. The winners of 2020 will turn this on its head. They will develop a much more complete understanding of their customers and dramatically simplify their product set, and so deliver a significantly enhanced customer experience with lower levels of operational risk. Success will come with changing the traditional approach by beginning with understanding customer needs, not products and pricing.
Looking beyond the current pandemic environment, powerful forces are reshaping the banking industry. Customer expectations, technological capabilities, regulatory requirements, demographics and economics are together creating an imperative to change. Banks need to get ahead of these challenges and retool to win in in the future. Banks must not only execute on today’s imperatives, but also radically innovate and transform themselves for the future.
TCS Digital Software & Solutions offers a fully integrated software solution developed by industry experts that helps banks successfully address current and future industry trends and challenges. TCS Customer Intelligence & Insights (CI&I) for Banking is customer analytics software that enables superior connected banking experiences. CI&I allows retail-consumer, SMB, commercial and corporate banks to drive organic growth, loyalty and differentiation quickly, easily, and cost effectively to compete in today’s disruptive banking environment.
Learn more here.