Some of the habits that successful banks are using can be applied to other business models because the main focus on customer care and overall customer experience. There is a lot that can be improved in the system but it takes a lot of time and effort. You need to include that many people are relying on an efficient system, so any delays may result in losing a lot of clients.
Also, to satisfy your users, you need to adapt to them which is becoming more difficult to do because we live in a fast world where the goal is to make things as simple as they can be. Little interest or liten rente credits aren’t the only thing that should be better. Clients will come even if the bank isn’t so cheap or popular but the system works great. They need to realize how the digitalization is impacting this industry and use it in their advance.
You need to change your mindset, in order to be customer focused which involves the culture you have in the bank. This also can be applied to digital changes that are happening. The profits shouldn’t be the primary focus because it will come through time as you get customer trust. Going digital isn’t a trend that is happening it is more like a part of organizing that has to be applied.
The bank needs to prepare its users for the changes that are going to be made. Just implementing them and making a tutorial or introduction isn’t enough if you want to beat your competition. Customer education is as important as employee education. Trust is the essential thing in financial business, so they need to improve the capabilities in getting new customers over digital platforms because that is the future.
Read more about it here: https://www.techfunnel.com/fintech/strategies-to-improve-customer-service-in-banking/
Most of them that have their traditional ways should think about challenging their ways. The problem with today’s managers is that they are doing everything to protect their way of doing business because it is proven to make a profit. But, with some major changes in the industry, that is the path of failure. Newcomers are already taking action and doing what others skipped.
Maybe the newcomers are small for the industry, but in order to make it, you need to have a long term perspective. When you look at a wider picture, you’ll see that this isn’t only a technological revolution it’s a business revolution also. If something worked for a few decades, it doesn’t mean it will still work in a couple of years. Changing the business model can be very beneficial and challenging ideas may separate you from the competition.
Fewer economist and more IT professionals will be part of the banking business model. The IT architecture will be the core of the system. This means that banks will have to cooperate with other companies in order to have security and stable platform for their clients. There isn’t a place for saving all the information and isolating your business. You will be forced to share information.
You probably haven’t thought about this, but the auto industry is going through the same process where digitalization is becoming a large part of it. The first one who adapts the best is going to be the leader in the industry. Having collaboration with tech companies is going to be an essential part of every industry.
In order to build competitiveness, the whole IT architecture of your business needs to be changed. It is important to have someone by your side because there will be updated constantly as the tech industry improves. The platform should be API-centric. One of the important parts is CRM or customer relationship management that has to be digital based. This will allow you to scale faster. This will be normal in the next five to ten years. Traditional banking organization won’t be able to become a digital bank because everything needs to be changed.
There are many ways you can monetize information. For example, analytics capabilities should be updated and use it with the internal data they have. Because we will see more cross-sharing, they can make new offers like benchmark analytics or reports. The problem is that a bank needs to be competitive in order to gain attention. Click here to read more.
The majority of banks have some key information and details about their customers. Privacy concerns still exist, but they can share the data without breaking any laws. Other companies that aren’t in the financial industry can use this for data to expand their business. It can be very valuable to industries such as automotive, retail, and telecom. Even if the bank has to collaborate with IT firms, they will have new opportunities to make a profit.