Page 29 - Banking Finance November 2021

ARTICLE

As more customers go online, bank's position at the to creating a seamless digital banking experience. Today, the
crossroads of the customer and financial services is under customers have a plethora of options as banking
threat. A crowded industry landscape is emerging, with organisations, fintech players, and others in the eco-system
various types of firms competing at various levels. Nonbank further tweak the paradigm for digital transformation in
entities such as fintech's are making significant inroads in banking. Moreover, as the lines between fintech players and
distribution, threatening to commoditize many banking conventional banks begin to blur in the digital landscape,
products. accelerating the pace of digital transformation is
indispensable. Initially, digital transformation was perceived
as merely changing manual processes to automation.
3 The amount of time it will take for global
retail-banking revenues to return to 2019 However, from the perspective of customers, digital
Years transformation encompasses the path to a delightful digital
levels.
customer experience. Essentially, banks need to introspect
how customer insights, process redesign, and technology
The increase in the use of mobile banking implementation can be aligned to achieve the strategic goal
30% worldwide during the COVID-19 crisis-and of organisation and build value for consumers.
further increases will follow.
Y Comprehending changed buying behaviour
The efficiency of leading retail banks, The pandemic has had a significant effect on the mindset of
2X compared with that of the typical retail the consumers, changing their buying behaviour. Today,
bank. banking consumers are looking for greater digital
convenience and are more comfortable transacting from
their homes. As per BCG's recent retail-banking survey
(Source: BCG Analysis, 2021) report (2021), throughout the pandemic, an average of 13%
of customers in 16 major markets utilised internet banking
As a further reiteration, the article focuses on significant for the first time (12% for mobile); and for other markets,
factors that the banking industry may realise the value of the figure is significantly higher.
and further adopt to retain customer delight and loyalty.
During the crisis, cashless payments are also gaining a lot
Comprehending & Prioritising the Value of traction. More than 20% of respondents reiterate that

Factors they have increased the use of digital payment solutions,
such as those provided by internet banking and third-party
Y Re-Skilling the Workforce apps, and more than 10% said the same about credit and
Digital banking transformation and automation must be debit cards. Such behavioural changes are impacting branch
guided by a deeper understanding of how humans use banking negatively.
technology. Factoring the principle of human experience in
the design of systems becomes critical. Although digital
banking improves efficiency and reduces costs but for the
new system to work, we need to ensure that people are re-
skilled to adapt to the new technological paradigm. An
understanding of employee strengths and limitations
amalgamated with the priority to augment human skills is
essential for many banking tasks. As the banking workforce
becomes more mobile, diverse, and dependent on
technology, observing the buying behaviour of the customers
requires constant learning, un-learning and, re-learning.

Y Accelerating Digital Transformation
There is much that goes on behind the lines when it comes

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