How Mobile is Transforming Banking & Insurance

by Buana Sari Digital Marketer

The banking and insurance industries have been slow-moving behemoths resistant to change, but time is changing fast. The need to change is rooted in the changing needs of their customers. There is a growing importance for banks and insurance providers to use mobile technology platforms to serve their customers. This is pushing banks and insurers to design and execute mobile transformation strategies and campaigns to meet the evolving needs of the market.

Among mobile and digital transformation technologies being embraced by banks and insurers, mobile technology happens to be the most dominating entity. It reduces risks by reducing costs, increasing revenues and enhancing customer experience. Mobile technology is having a big impact on the banking and insurance industry by acquiring new customers and retaining the existing ones.

According to a McKinsey Report, Customer behavior across Asia–Pacific strongly favors usage of mobile in banking. Approximately 97 percent of Asia–Pacific customers either consider the mobile channel the best of several ways to interact with their banks or insurers. It is observed that 71% of customers perform research using mobile tech before making their buying decision, and 26% prefer buying online – a rate that increases every year (Source : PWC Insurance).

Customers no longer need to sit with the pushy sales representatives for hours to get policy information or info about banking products. Now they can purchase banking and insurance products, compare offers, and even file a claim right on the spot via mobile devices.

Mobile technology is playing a pivotal role in transforming the banking and insurance industry. Let’s see how.

1. Automated Customer Acquisition

With the growing competition most of the banking and insurance players are adopting mobile technology as it is more convenient and cost effective. They can now easily reach out to their tech-savvy customers using mobile technologies like moLotus, mobile app, chat bots, etc.

The path to purchasing insurance and banking products and services is complex. Mobile technology is transforming, automating and simplifying the purchase through assisted buying on mobile, mobile-assisted payments, and single-click purchase process.

For banks and insurance players, customer acquisition channels earlier consisted of emails, direct mail, pay-per-click (PPC) advertising, etc. Recent research reveals the inclusion of moLotus - mobile lead generation platform and technology that has completely transformed the lead capturing, customer acquisition and support processes for global banks and insurers. They can now generate leads via automated lead generation campaigns. The campaigns extensively use illustrative product videos and offers attracting the potential customers; encouraging them to interact, and enter into transactions and avail the products instantly. moLotus mobile tech is rapidly replacing voice-based contact centers and manual sales processes for banks and insurance companies with automated mobile-based selling processes with the platform like moLotus.

2. Hyper-personalized Offerings

Hyper-personalization is a powerful business differentiator for banks and insurers. They stand to gain significantly from acting on it quickly and having the first mover advantage. 88% of insurance customers seek more personalization from insurance enterprises (source : Accenture).

The advent of mobile technologies can be inextricably linked with tailor-made offerings that banks and insurance players deliver hyper-personalized products, services and pricing to customers. More and more banks have deployed hyper-personalized offerings to increase customer loyalty and maintain their competitive advantage. In the insurance sector, hyper- personalization involves using customer data to individualize customer communication, develop a deeper understanding of customers and provide them with context-specific services.

moLotus is one example of a mobile technology doing hyper-personalization for banking and insurance brands to great effect. It is transforming customer experience by integrating customer data across all bank branches. Banks and insurance companies are now capable of using the hyper-personalization capability of moLotus to make customer recommendations driving individual customer engagement and sales.

To ensure highly personalized customer communication, moLotus uses customer data for creating campaigns with hyper-personalization options like customer name, unique Id, offers, rewards, etc. Banks and insurance companies can engage their massive customer base better by creating hyper-personalized mobile video campaigns. Personalized messages reach directly to the customer’s mobile message inbox without any application or involvement of data charges.

3. More Product Revenue Generation

In this new era of mobile technologies, banks and insurance players are better positioned to improve their product offerings and truly engage customers via automated and digitized processes. Global insurance and banks have been exploring several technologies for product revenue maximization including moLotus, In-App, E-mail and more.

Fortunately, mobile transformation technologies like moLotus have opened up new product revenue generation opportunities for global banks in the form of promotion of credit card usages, loan approvals, deposit drives and retail transactions. Customers can easily apply for credit cards and get quick loan processing & approval via mobile devices. The customer onboarding process is now possible via mobile. Banks can quickly reach their customers with the latest reward campaigns via mobile.

Insurance companies, on similar lines, are availing new product revenue generation opportunities from moLotus mobile technology like interactive underwriting, faster claim processing, policy renewals and more.

Major brands in both insurance and banking sectors have increased top-line revenues without compromising bottom-line margins; generating high ROI by uplifting ARPU and Customer Lifetime Value.

4. Superior Customer Loyalty and Retention

Customers who feel satisfied with their banks and insurance companies are far more loyal. In the past, insurance and banking customers were loyal, but in today’s world they are very fast moving. Customer loyalty has arisen as a big issue for both sectors, as retaining a customer costs much less than acquiring new ones.

According to an Accenture report, among the factors that have a strong influence on policyholder loyalty after a claim include the time it takes in claim processing, the time it takes to renew policies, and the transparency of information throughout the processes. The best way to build customer loyalty is via the adoption of mobile technologies which have automated and transformed these long and tedious processes ensuring better customer engagement and satisfaction.

There are currently too many customer loyalty & rewards programs delivered via mobile apps like Shopkick, Smile.io, Spendgo, etc. Banks and Insurers using them are mostly unhappy with these apps.

Top banking and insurance brands are embracing strategic mobile transformation technologies like moLotus to increase retention of existing clientele. They prefer running unique loyalty campaigns using moLotus automation. Currently more banks are offering mobile loyalty cards like moLotus loyalty cards and eliminating the need of customers to carry plastic loyalty cards for day-to-day shopping.

The future belongs to the new generations. Banking and insurance companies have well realized this fact. They are establishing a long-term relationship with the millennials and Gen Z customers by keeping them engaged via moLotus mobile transformation capabilities like digital rewards, mobile reminders, Frequently Asked Questions, real-time customer ratings, how-to, feedback via mobile and more.

5. Cost Reduction

Mobile has transformed customer processes for the banking and insurance sector bringing in a noticeable amount of cost efficiency. Studies highlight that moLotus mobile transformations have reduced outbound costs by up to 30%. The new technology has transformed customer processes like customer onboarding, reminders, lead generation, policy contract renewals, and more making them cost-efficient.

moLotus mobile automation has eliminated the staffing, training, printing & distribution, telemarketing, compliance, etc. costs for several banks and insurers. The costs that are saved by banks in mundane and unproductive activities via digital transformation and automation, can be utilized towards important business activities like customer acquisition, customer loyalty, etc.

6. Conversion Optimization

Conversion rate optimization has been top of the charts for insurance and banking businesses. Many banks and insurers have been successful in conversion rate optimization via mobile transformation. Several such organizations perceive that merely building a sleek website, creating a mobile app, optimizing SEO elements, etc. will drive customers and add to conversions. But the fact is that all these activities are meaningless unless they have enticing conversion points.

For banking and insurance enterprises a conversion point can be any point of customer interaction. Thus, experts say that the most effective way for them to increase conversion is by creating enticing conversion points via moLotus mobile transformation technology. This technology has come up with many easy customer interaction options as a part of the customer communication process. Customers can easily and conveniently communicate with insurers and banks via mobile using USSD, SMS, Click, Call and more.

Manual customer processes like filling & document submission, contract renewals, reminders, etc. have been made simple and effective by moLotus adding to more conversions for insurance and banking enterprises. And, moreover moLotus doesn’t need any App Download or Data Plan. It works on all kinds of phones - feature phones and smartphones.

7. Improved Customer Journey

With increasing smartphone penetration, seamless mobile experiences across every service and product is what customers desire. Technologies like moLotus, Salesforce, SAP, etc. are creating better customer journeys by digitizing, automating, integrating and improving customer processes via mobile transformation; using them banks and insurance businesses can better handle the customer throughout the processes.

For example, moLotus has digitized customer journey allowing a customer to sign-up for an account via one click on mobile devices, mobile on-boarding, get mobile video tutorials, take instant loan decisions, demand claim processing, make deposits, pay bills digitally, avail wealth management services, and much more.

8. Data Analytics

Data analytics is now a key component for the successful running of insurance and banking institutions. The rising volume of customer data is inducing insurance and banking enterprises to digitize and resort to mobile transformation. With enterprise mobility solutions and analytics, banks and insurance enterprises can intelligently integrate strategic data assets to offer actionable insight with innovation and agility. They are harnessing the power of mobile analytics to manage customer data and get deep customer insights. Utilizing the right mobile transformation technology like moLotus enables insurers and banks to get the right business insights.

moLotus data analytic models have built on customer data to unleash new insights and achieve strategic goals. Integrating moLotus mobile analytics implementation in the existing business models produces tangible financial results for both banking and insurance businesses across the globe.

Conclusion

To meet the evolving customer demand and competition, banks and insurance businesses need to transition from a legacy architecture and manual operating model to an automation and mobile-first business model. The future of mobile-first entities is built on breakthrough mobile video customer interaction platforms like moLotus. Financial businesses and mobile technology platforms have already started to collaborate as partners in designing and managing new operating and revenue models with favorable outcomes.