The modern-day customers are inclining towards the online banking channels more than ever. According to a study conducted by Gallup, nearly 56% of banking customers (i.e. 6 out of 10) prefer a digital relationship with their bank over a physical one. While banks have been striving hard to expand their digital channel, they struggle to onboard a large customer base over these platforms.
As banks and financial institutions continue to introduce new digital channels like the internet banking and mobile banking applications, they’re figuring out better ways to increase customer engagement while also lowering the operational costs.
A survey by Accenture polling answers of over 4,000 US and Canadian banking customers highlighted that as large as 87% still prefer human interaction at a physical branch. Furthermore, 86% of the millennials indicated their interest in using bank branches for at least next two years (as on 2016).
Banks can attain new heights by migrating customers to digital banking channels in an effective way. Let’s find out how.
1. Defining a feasible business model for digital banking
For an online banking initiative to be successful in financial institutions and cooperative banks, it is imperative to deliver concise, engaging, personalised, intuitive and holistic approach to customer propositions. To do so, banks need to go beyond just offering basic financial transactions and offer futuristic ways to help customers build financial wealth, make informed decisions on investing, save and shop – all this while being entirely safe online.
2. Identifying digital-ready customers
The customers can be widely classified into two: the first set are the tech-friendly lot; the youth, students, IT people etc. The second group encapsulates the rest. While the first category mostly embraces digital channels, there’s a huge scope for banks and financial institutions to migrate the latter over digital banking platforms. With focused efforts on educating customers about the use, outcomes and simplifying the processes, banks can extend huge benefits of online banking to customers.
3. Ensuring excelling customer experiences across all existing channels
A digital banking experience includes providing services via channels like internet, mobile applications, credit/debit cards, social media etc. With changing market dynamics and increasing customer expectations, banks are burdened to be omnipresent and service across all modern channels, particularly digital. However, the fact that merely being available to serve online with mediocre facilities will only make the existing and digital-ready customers shy away from banks. Rather, engaging customers and satisfying them with flawless customer experience should be the real ‘mantra’ to crack the deal of migrating them online. Banks must emphasise on ease of transacting for customers while coupling insights on products, investment options, rewards and more.
4. Tutoring the customer-facing staff
Before influencing the customers to move to online and digital banking, banks must educate their own staff. Many banking staff do not understand the power and scope of internet banking. Sincere efforts must be made to train the banking personnel so that they can inculcate the knowledge amongst masses and promote larger adoption of digital banking channels.