Has your company undergone a digital transformation?
Especially in the financial sector, digital transformation is crucial to the survival of businesses. In a nutshell, it is the up-gradation of existing processes or introduction of new ways of carrying out business activities using digital technologies that enhance a customer’s experience, leading to higher conversion rates for the company.
In banking, this integration of digitisation leads to fundamental changes in how financial institutes operate and deliver value to their customers.
Moreover, it refers to the process of transforming an organisation into a digital business. It is not just about digitising the existing processes. It is also about the integration of new technologies and a new way of thinking that will help financial institutions to more effectively serve their customers, generate new opportunities for innovation, and stay ahead of the competition.
The main goal of digital transformation is to stay relevant and competitive in a world that has become predominantly digitised and where anything and everything can be done online.
So, what exactly are the benefits that digital transformation can offer those in the local banking and lending sector? We uncover five of these benefits below,
- Customer Experience
- Online Trust
- Efficient Customer Acquisition
- Innovation & Agility
1. Customer Experience
Customer Experience (CX) is by far one of the most essential aspects to ensuring the success of a business. And with AI, customer service can be more personalised and efficient than ever before.
AI can improve the customer experience by providing more relevant content for customers, giving them more accurate answers to their queries, and predicting what customers are looking for within the business offerings.
Artificial Intelligence can have a positive impact on the customer experience by understanding their wants, needs, and habits. Moreover, it can analyse the data collected by the business to improve the customer experience in various ways.
For example, it can provide more relevant content for customers who are looking for information about a given topic by analysing their social media posts, monitoring their queries to provide them with accurate answers and predicting what they are looking for before they even ask.
2. Online Trust
Nowadays, people choose their banks depending on how they perceive the establishment. And how financial institutions position themselves online will shape the way their potential customers perceive them as a business. Social media platforms, websites, and ads all bolster influence on those using the internet. Therefore, if banks can deliver the right kind of digital marketing, it will help them build trust in people’s eyes online.
There are several ways to build a relationship with a customer but one particular strategy that has produced promising results – Online Reputation Management (ORM). ORM is a multi-faceted concept to create a positive public perception of a brand, business, or person. It includes monitoring reputation, handling any client feedback that could harm the brand, and using tactics to contain and solve concerns that could damage the reputation.
3. Efficient Customer Acquisition
Banks need clients just as much as clients need banks. Therefore, these organisations can no longer be stagnant regarding how they choose to attract their consumers to their services. The good news is, there is a more affordable and easily accessible way to attract these customers to your institution.
The online sphere provides fantastic platforms to reach out directly to these possible consumers, right on their devices. This access makes influencing them easier, which in turn, leads to an increase in the possibility of them coming to you. This system is also called Content marketing and is basically contemporary word of mouth. Content marketing helps to encourage engagement and attains trust with both candidates and clients.
Digital transformation allows financial businesses to foresee and understand what the people want, and they can develop their services and offer according to customer prerequisites rather than playing the game of guessing. Contemporary innovative technological evolutions allow banks to boost customer engagement with personalised offerings.
5. Innovation & Agility
Digital Transformation helps banking organisations to embrace technology and market trends and scale these efforts with incremental triumphs. Only if an establishment can upgrade itself will it be able to cater to the needs of the new-age clients. Sophisticated digital technologies have changed the traditional way that banking operated.
The emergence of shopping outlets, social media channels, and integrated mobile apps has opened several doors for banks to reach out to their customers.
Those in the banking and lending sectors need to welcome this new digital world by moving towards a digital transformation. For example, many people today are more likely to watch a short explanatory Youtube video than read a long pamphlet. What does this tell us? It tells us that videos are becoming increasingly popular as they are straightforward and promote engagement.
The lending sector is one of the most important aspects of the banking industry, and they both heavily benefit from implementing innovations such as digital transformation. Because this sector provides essential services to customers by providing loans and other financial services, it has become increasingly difficult for the lending sector to keep up with its pace of growth. This has led to an increased demand for automation to maintain efficiency.