So far in our digital banking series, we’ve discussed why digitization needs to be top of the agenda for bank executives. We’ve also outlined the three “Ps” of digital success – product, people, process. As the banking sector becomes increasingly competitive, with tech giants and fintech innovators challenging the established institutions, maximizing efficiency is becoming even more important. Digitization is central to this process. Here are three ways banks can kick start the efficiency drive:
Customer-centric services can reduce costs
When developing customer service strategies, banks need to look at problems through a digital lens. Only a ‘digital first’ approach can engender genuine brand loyalty and create a seamless, convenient service for users. Crucially, though, it can result in boosted efficiency for banks. Cutting administration is a key benefit; customer enrolment processes can be greatly simplified, reducing the burden on staff, saving time and money.
Delivering a more flexible service
In today’s competitive banking sector, flexibility is becoming increasingly important. Consumers, especially millennials, want to access their bank accounts via mobile, tablets and laptops. They expect transactions to be instant and access to be seamless. To meet consumer demand, there is a clear need to invest in the right technology to ensure banking apps are first class. Employees and customers have to be able to easily access resources, increasingly available in the cloud.
In addition, in the age of cloud, digital currencies and wearable payments, effective integration needs to be a priority. Policy changes, security upgrades and modifications to services need to be rolled out across all platforms.
Choosing the right partners
As we’ve discussed on the blog before, banks need to perceive fintechs and startups as potential collaborators rather than threats to their business. Fintech and startups can offer new perspectives on efficiency problems and provide banks with enhanced technical insights. Banks, meanwhile, have plenty to offer fintechs – just think about the volume of customer data held by a traditional high street bank. Partnerships between these entities can lead to big rewards.
As we’ve established, digitization must be a priority for banks, as they seek to streamline processes across their businesses. Only a ‘digital first’ approach can truly boost efficiency.
To discover more about the benefits of digitization for banks – not just in terms of efficiency, but customer experience, security and flexibility – check out our dedicated site here, where you’ll find a wealth of information. We’d also love to hear your views on boosting efficiency in banking, so make sure you tweet to us at @Gemalto, or post a comment below.