Firas Ghunaim

May 8, 2022

3 Ways To Ensure A Seamless Digital Banking Transformation

AI-driven service personalization and optimization will provide the insights and efficiency needed to compete and prosper.

Few in the banking and financial services industry would disagree that financial institutions that rely on data-driven machine learning and artificial intelligence (AI) tend to deliver superior experiences to their clients.

However, not many in the banking industry are simply using AI to tweak existing digital banking products and services - AI is not there simply to speed up your production line, it's meant to help you become more innovative.

‍

Artificial Intelligence and Financial Institutions

Transformation is difficult and more challenging when it comes to banks.

Creating a product, selecting a market group for distribution, confirming that everything is in order, and then distributing it to potential customers is the standard banking approach - it served banks well for many years, but now it's time to move on.

Streamlining the consumer credit application process, lowering compliance exceptions, and automating help desks - are all examples of several advantages that AI uses can be of benefit to banks and their customers.

However, AI can make mistakes, such as unintentionally skewed results.

Customers will not be satisfied with products that lack relevance to their needs or everyday life. Using AI to repackage existing financial products and services is not enough.

AI gives banks the ability to truly understand their customers and with that comes the insight to create truly exceptional, personalized, and relevant digital banking experiences.

‍

Customer-centric Banking Powered by AI Thinking

Financial institutions should optimize for the demands of their customers.

This may appear to be an easy task, but the dedication necessary, as well as the roadmap for bringing this vision to life, is serious, costly, and challenging, especially when meeting expectations can take a long time.

"Put the consumer first," stated Jeff Bezos. Invent. And remember to be patient."

Amazon took 20 years to become profitable, and during that time, Bezos continued to spend on improving his customer knowledge and delivery. Amazon's excellent profit margins were achieved just lately, and only after a hard fight.

This means your bank or business must actually know what their customers really want before throwing more digital products and services at them all the time.

Gather critical information. Don’t guess. Pay close attention to what consumers are going through in their lives and then advise them on techniques that will be effective in their situation. When used in this manner, AI may continue to guide an institution in ways that benefit people and companies.

‍

Related: Top 6 Banking CX Trends

How to Ensure A Seamless Banking Digital Transformation

No need to be delayed or disrupted. Just keep moving forward.

Financial institutions are resistant to change, yet it is possible. Here are three ways to get your bank back on track:

‍

1. Gather Human-Centric Data

Data is now communicated in the form of systems and ledgers.

Financial institutions still keep and access data in a system-centric manner, even under Europe's innovative PSD2 open banking framework: transactions, goods, accounts, and balances.

It's really difficult to grasp anything about people's specific circumstances when data is structured in this manner.

Transformation of digital banking experiences means you need to speak a more relevant language with your customers.

This entails creating data interfaces that enable financial organizations to inquire about people's behavior and demands. What kind of financial personality do they have? What occurrences in their lives provide them the opportunity to help others?

‍

2. Shift From Products to Experiences

"How can we get the product to more people for less money?" "How can we provide the correct product recommendations to customers at the right time?"

If products remain the backbone of banking, the term "customer-centric" has no meaning.

As people's lives and situations change, so do their needs.

They have issues that need to be solved and queries that need to be answered at any given time. The success or failure of these journeys and experiences will begin to become even more significant to your profitability as a bank.

In a future where switching banks is simple, customer love — or hatred — will be a profitability concern.

When institutions focus on knowing people, they will function in an entirely new way - instead of measuring "sales," they would measure "issues addressed."

‍

3. Stop Selling. Start Guiding.

Financial institutions have become sales-driven as a result of living in a product-centric environment. The fight between disruptive fintechs and traditional banks is intense - however, banks are losing the ground they thought they had always secured.

Fintechs provide actual value to people. They fix problems and address pains. Banks just keep selling more and more products. People only have attention for banks that listen and care about them.

People want to be heard, and they want to be taken care of. This indicates that individuals demand financial guidance in the context of financial services. It is not about purchasing a product when you seek advice. It's all about setting objectives, planning for transitions, and hopefully building a pleasant, overall personal wealth story.

‍

Related: How to Build a Neobank

‍

Delivering Digital Banking Transformation

Adopting a neobank and fintech mindset is essential to your bank's ability to remain a relevant force in today's digital economy.

Through our official strategic partnership with Backbase - the world's leading engagement banking platform; Sitech can help your bank become a truly innovative digital banking experience across all channels and touchpoints.

Our team of 140+ certified software engineers, product designers, and analysts will help your bank develop neobank capabilities and deliver data-driven financial products and services.

If you are ready to explore your requirements, our team of consultants can help you align your priorities.