Page 43 - Banking Finance September 2021

ARTICLE

with the automation and speed. They expect traditional
branchservices, like depositing cheques, opening
account etc. to be available on their smartphones. Banks
need to be agile and ready to move with rapid
innovation in the payments space as well as greater
integration of banking services with other apps and
services.
B. Adoption of emerging Technologies: Banks need to
incorporate new technologies like Artificial Intelligence
(AI) and Machine Learning (ML), Analytics, Distributed
they want to make memories in everything they do Ledger & Blockchain Technology, Cloud computing,
- even if it's just a trip to the Bank. In order to make Internet of Things (IoT), Augmented Reality (AR) and
banking fun, Banks must gamify the experience and Virtual Reality (VR), Quantum Computing and
offer appropriate rewards. Biometrics to efficiently meet the today's customer
needs,such as Biometrics-enabled customer
D. Become A Trusted Advisor: Financial advising is
identification, Paperless/Signature-less account opening
becoming the hallmark of today's service. Banks/FIs
will have more opportunities to build relationships service, AI powered virtual assistant to answer the
with the new age customers and do what they do questions etc.
best and that is"provide financial advice". C. Personalize using AI/Analytics: AI,Big data and
analytics need to be leveraged to extract insights into
E. Access to the talent and skills: If the Bank officials how customers' lives are changing and predict what they
(technical/non-technical) do not have the skills needed want even before they know what they want. Banks
to build and operate an effective digital channel
need to use these insights to personalize messages and
offerings, we need to build the human capital strategy
offers and create highly targeted cross-selling offers.
through revitalised recruitment, learning and
development, partnering and cultural initiatives. D. The future of interactions: A menu with a host of
generic services may not be enough to lure them; they
F. Protect privacy: Customers must feel their
would need a focused set of highly relevant services
information will be used to benefit them. If designed exclusive for them. Banks to work on
protecting the information is handled poorly, privacy this.Talking to a bank and receiving an intelligent
violations could invite a heavy-handed regulatory
personalized response is possible through AI. It uses
response. Banks/FIs will need strong operational
natural language for both queries & answers and can
controls in place so that data is not being misused.
complete its analysis in seconds.
2. By building the technological/digital Conclusion
capabilities The new age customers are influenced by the culture and
A report estimates digital payments industry in India to world developing around them. The changing social
touch $500 billion by 2020 spurred by smartphone dynamics and technology have a profound effect on their
penetration. With the growing acceptance of P2P, beliefs and actions. To dismiss them as simply arrogant, lazy,
Banks need to provide innovative services that or over-opinionated neglects what makes them special and
complement their existing online bill pay and money different from other generations. This group will challenge,
transfer services. expect more and desire a better idea for how to live in.
Banks they have built relationships with today will be the
Here are some tips for success. ones they are loyal to tomorrow. Banks need to urgently
A. Embrace Online/Mobile solution: 84% of young respond to the needs of the trend setting young customers,
customers in India already reliant on mobile broadband, to truly redefine the consumer story across the country and
spending an average of 17 hours a week glued online. realize the market's potential in its entirety. Ignoring them
They want banks to meet their 24X7 digital demands may well lead to the demise of our brand. T

BANKING FINANCE | SEPTEMBER | 2021 | 43