In the last few years, as is the common trend of evolution among different verticals, Banking, Financial Services & Insurance is undergoing a transition from product-based and transaction-based to a customer-centric business model, and the evolution of digital is responsible for much of it. Multi-channel engagement for customers to take care of their financial objectives has become key to maximizing customer engagement, improve customer experience, and reduce attrition, which is directly related to creating newer and more innovative revenue streams for banks. The Digital platform will impact the entire financial ecosystem by necessitating new internal business processes and instilling new employee skills to support these operations.
Customer Experience Focused Digital Transformation of business
Gone are the days when implementing digital business used to mean centralization of information and automation of tasks to achieve optimization. The ‘digital’ now refers to a new way of looking at business, a complete transformative approach of the Enterprise Business Model , promising far-reaching effects, and readying the business for a new age of tech-savvy customers and their digital centric lifestyle.
The Optimism around Digital and Analytics
The prospect of adopting Digital and Analytics has a very high approval among most of the top companies and executives. According to a Gartner Survey, by 2016, around 50% of businesses intend to go significantly digital, and that number is anticipated to go till 83% by 2019. Businesses are focusing on three key areas – Big Data & Analytics, Digital Marketing & Social Media and Mobility Solutions & Cloud Integration
The modern consumers have changed. With the advent of internet, and easy access of it, finding what they are looking for has become easier. Customers nowadays perform a lot of research before they purchase a product. They now expect to receive personalized service customized to fit their preferences, which also keeps continuously changing. Converting a customer successfully requires a business know a lot about their buying behavior, to a level that even they themselves might not be aware of. If businesses want to stay ahead, they’ll have to know more and act quicker.
The advent of e-commerce saw intense competition among companies, locally as well as globally, in taking their business transactions online. The next phase of competition would be on who can come up with a better predictive model on what a customer is going to buy next.