Banking institutions are now striving to have the ability to alert their clients to balance issues, newly deposited paychecks, nearby branches and ATMs, upcoming bills, stock market fluctuations, and even fraud.
Not long ago, all of these responsibilities fell to the consumer to be in control of, and if there was ever an issue, it could take days or even weeks to resolve. These goals and strategies (among many others) are at the core of a need of today’s banking establishments to incorporate a strong digital transformation strategy. This strategy can transform a banking institution from a brick-and-mortar building that keeps people’s money safe into a full-service suite for the customer, that they have available at their fingertips 24/7, 365.
Internet of Things (IoT)
By focusing on supplying a more streamlined, and connected digital experience banks have continued to increase the number of services that they offer, as well as how easy those services are to utilize. As an example, wearable IoT (Internet of Things) devices, such as smartwatches, can be integrated into banking strategies to be able to use contactless payment through those accessories. In addition to smaller IoT devices, a user’s banking data could be available on a compatible car’s smart wallet, which then could be used to pay for car related services, such as parking or charging.
Use of AI
Another reason to look towards a strong digital transformation strategy is the growing requirement of companies to supply AI generated suggestions to the user. One easy illustration of this is banks incorporating machine learning data to be able to provide more pointed investing recommendations, based on the clients’ needs. Utilizing analytical data can aid in providing the user with offers or services that they are most likely to want to take advantage of, offering additional value. These advanced recommendations often foster customer loyalty and increase customer numbers. Thus a holistic investment in digital branding, content management, and customer engagement helps the bottom line for banks.
In addition to the benefits from the user standpoint, possibly the largest need of digital transformation for banks today is the need for ever-increasing digital security. As the sheer volume of online banking services continues to increase, the money housed within those services is ever more digitally facing, and thus at very high risk of theft and fraud to digital “cyber-criminals”. Banks need to continue to grow and adapt their digital security protocols, through all manner of digital structures, vigilant monitoring staff, high-level alert systems, biometric securities and others to reassure their users that their money is truly protected.
Usage of legacy systems continues to plague the banking industry. As a result, these legacy systems slow all facets of day-to-day operation, causing frustration from the highest levels of management when large scale data cannot be collected quickly, to the ground employees who are struggling to push a transaction through. These slowing legacy systems can’t keep up with the rising demands of customers, or the sheer amount of content. Modernizing your content management system is the first step that should be included in a good digital transformation strategy. Decreasing processing times will help customers reach their goals faster, as well as make daily tasks easier and less stressful for your employees.
Content Management Costs
Along with digital security and legacy systems, banks also have a great need for digital data storage, to be able to store and retain all of the content of their client base. Through integration of an Enterprise Content Management (ECM) provider, like Unity for nCino, that looming space need can be reduced greatly, thus reducing the associated cost. Additionally, placing that data within the confines of a well-structured repository such as an ECM tool will reduce find times for locating data, helping to streamline customer interactions that require those resources.
There is a substantial need for banks to incorporate and continue incorporating digital transformation methods into their long-term business plan to stay relevant and competitive in the current marketspace. This digital transformation aids on both sides of the fence, providing the customer with a more enjoyable, fully inclusive banking experience, as well as increasing productivity and throughput, decreasing workflow interruptions due to slow, outdated tools, and allowing for quicker pivoting to meet customer needs. Any company in the banking space that is too slow to revamp its scheme to meet the increasingly digital demands of its client base is likely to be left behind and forgotten.