Banks have encouraged consumers to engage with them through digital channels. Migrating low-value and process-driven interactions to digital channels while retaining high value and more complex client activity in branches meant they saved costs while protecting personal relationships with customers. This has led to a gradual 3-4% shrinking of branch networks in much of the developed world, although in some markets closures have been more extensive. Although banks had some success, customer adoption of digital channels was slow for all but the most basic banking activities. Certain customer segments still visited their branches for things they could easily do online and even the most tech-savvy customers still liked the comfort of opening new accounts, resolving issues, or receiving advice about complex products face to face.
As much as 50% of consumers now interact with their banks through mobile apps or websites at least once a week; 2 years ago, this was just 32%. The volume of in-branch transactions in the US has decreased by 30-40%. Digital engagement across all consumers is significantly higher than at pre-pandemic levels. Digital migration also accelerates commoditization and jeopardizes trust for banks that sudden upswing in digital engagement could be both a blessing and a curse.
PERSONALIZATION
Customers value price competitiveness while dealing with their banks, and insurance customers have ranked value for money in the first place. Some 2 years ago, value for money was only in 5th place. And although primary bank account switching activity is low, those who have switched in the past 12 months are most likely to say that a better price or value was their main reason for doing it. For the people who have not switched, price and value are the main factors that might cause them to do so in the next 12 months.
هذه القصة مأخوذة من طبعة January 2021 من Banking Frontiers.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة January 2021 من Banking Frontiers.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
The day is when brands bring customers to banks
Credit Card-as-a-Service will enable every business to issue a card of its own:
Transforming Tech Team from Generalists to Specialists
Gaurav Jalan, CEO of mPokket, dives into cloud data storage and machine learning for smarter lending decisionsm and strategic vendor partnerships, shaping mPokket’s agile tech ecosystem for growth:
Metabase, a unique cloud computing experiment by BEA
Hong Kong based Bank of East Asia, takes up a unique initiative in migrating to the cloud:
Radian Finserv empowers dreams across 5 states
Partha Sengupta, COO at Radian Finserv, reveals the company’s highest standards of service and integrity in all operations & expansion plans:
A digital thrust for Islamic Banking
Kuwait Finance House is a totally Shari’a compliant bank that used digital tools to its full capacity:
No escape from the law
A woman entrepreneur in Vietnam was sentenced to death recently for causing irreparable loss to a bank:
ARDB Computerization to boost agri & rural economy
Agricultural and Rural Development Banks (ARDBs) play a vital role in India’s cooperative sector by providing financial services and credit to farmers and rural communities.
Digital helps Branches boost Customer-Centricity
Public sector banks in India, long cherished for their reliability and extensive reach, are at a pivotal juncture.
Actionable Insights & Data Visualization empowers Belstar field force
Dhanasekaran S, CTO at Belstar Microfinance narrates the needs of the field force and developing a solution that empowers them:
Banks gearing up to buy Cyber-insurance
Recent years have seen a concerning uptick in cyber incidents against banks. In 2023, a data breach at Bank of America exposed over 57,000 customer accounts.