With new digitally-based players rapidly entering the market, traditional banking businesses must have cohesive digitalisation strategies in place to survive. Convenience is becoming the key criteria for financial services customers, with mobile banking future predictions looking like it might just fully replace physical bank branches. So, how can banking businesses stay agile and adapt to these changes with their digital strategies? Here are some of the key tips for creating a new digital strategy for banking.
A New Digital Strategy for Banking
A quality app is key
Mobile banking through applications is becoming increasingly popular due to how convenient and accessible they are. People want to be able to access their banks anywhere and time, within seconds – typically using biometrics (fingerprint) function to log in. However, just having an app available for your bank is not going to cut it. A bank that really focuses on digitalisation will put high priority on developing the best app possible. Simplicity and convenience should be at the heart of your app, with a user-friendly interface and great functionality.
All financial services that your customer may need to access should be available and integrated within the app too. This includes such things as opening a new account, ordering a card replacement, confirming identity and getting customer support through a live chat. If a person is required to log into a web page, visit a bank branch building or jump through any other loops to get those things achieved, this is a sign that your digital strategy is lacking.
Extend customer value
The contemporary customer is expecting much more from a banking business than just basic financial services. Creating a digitalisation strategy is a great time to consider what new and valuable features or services your mobile bank can offer. This is not only to add value for your existing customers but also to attract new clientele as a competitive advantage.
The features or services you offer are up to you. However, some of the most popular digital banks are offering services and information for personal investment, financial planning, tax management, and different kinds of insurance. Some even partner up with other organisations to offer their customers airport lounge packages, discounts for food or transport and so on.
Leverage data analytics
Data is one of the most important assets that a business can collect from its customers and it should be at the heart of your digital strategy. Mobile banking is particularly great for collecting highly valuable and specific data. It can provide you insight into your consumers’ behaviours, preferences, activities and spendings.
Your business can leverage such data analytics to gain customer feedback and improve, learn more about their customer base and cater their products for them, create personalised promotional offers and use many other ways to monetise the gained information for profits.
Security is always a significant concern for businesses of all kinds, however, as a banking business with digital services, you should be on the top of your game. This is not only to comply with the industrial data protection regulations but also to avoid the devastating effects that a data security breach could have on your business. Such an event could result in hefty fines and lost reputation or, in the worst of cases, bankruptcy. So, make sure that you have the latest and most advanced protection procedures as one of the most important factors in your digital strategy.
Keen tech writer outside of my day job in I.T. and spending time with my family.