Top Benefits of Digitalization & Transformation for Banks

by Buana Sari Digital Marketer

Digitalization has transformed the banking industry upside down bringing a truckload of opportunities for the banking enterprises and opening tremendous room for growth. Banking has been one of the very first industries to experience the wave of digitalization. Breakthrough transformations have rebuilt the banking operations, relations with customers, and rebuilding procedures. Digital transformation for banking enterprises includes understanding digital customer behavior, preferences, likes, dislikes, stated needs, latent needs etc. It is changing banking organizations from being product-centric / process-centric to customer-centric.

A recent study conducted by CGI entitled, Understanding Financial Consumers in the Digital Era reveal that tech savvy customers tend to leave where they currently bank if their needs are not adequately met. Fall in revenues and cost escalations are adding to the woes of the banking industry. Consequently, the industry heads are quickly resorting to process transformations to remain buoyant. They are focusing on delivering a seamless customer experience across various customer touch points.

The Covid-19 pandemic has also reshaped the way customers execute banking. Taking this into consideration, banks are making revolutionary changes in their functioning. They are researching new services, conducting transactions, opening an account, loans, credits, support, etc. delivering seamless digital banking experience. Studies show that integration of transformation technologies like moLotus with business processes is the key driver of digitization.

Here are the major ways digitization and transformation has been advantageous to the banking industry:

1. Cheaper and Easier Customer Acquisition

Banks are always in need of new customers. But the fundamental question is how do banks get new customers? The good news is that they can broaden their customer base in a cheaper and easier way via transformation technologies like moLotus.

For banks, customer acquisition channels included emails, social media platforms, direct mail pay-per-click (PPC) advertising, etc. Recent studies reveal the inclusion of moLotus - an interesting technology and platform that has completely transformed the customer acquisition processes for global banks. It enables them to generate more leads via automated and performance-oriented lead generation campaigns. moLotus provides illustrative product videos and offers attracting the potential customers; motivating them to interact, and enter into banking transactions and availing banking services quickly and conveniently. The technology is fast replacing voice-based call centers and selling processes for banks with automated mobile-based selling processes.

2. Hyper-personalized Offerings

In the context of digital banking, personalization implies delivering valuable services or products to customers based on individual experiences and customer data. Transformation technologies like moLotus are creating end-to-end customer experience integrating customer data across all bank branches. Banks are now capable of using hyper-personalization to make customer recommendations when they are actively purchasing to drive customer engagement and sales.

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

3. Superior Conversions

Conversion rate optimization has been a top priority for banks. Successful conversion rate optimization needs a clear-cut approach to digital transformation. Often banks hold a perception that just building a sleek site, creating an app, writing superb product page content, optimizing SEO elements, etc. will drive customers. But all these are meaningless unless they have enticing conversion points.

A conversion point can be any point of interaction with potential customers. A simple yet effective way for banks to increase conversion digitally is by creating enticing conversion points via moLotus transformation technology. The technology offers multiple customer interaction options as an integral part of customer communication. Customers can easily and conveniently communicate with Banks via SMS, USSD, web click, Call back and more.

moLotus has made manual customer processes like filling & document submission, contract renewals, reminders, etc. simple and effective adding to more conversions for banking enterprises.

4. Superior Customer Loyalty and Retention

Customers who feel their bank looks out for them are far more profitable and loyal. Therefore, the banking industry innovators are embracing strategic digital transformation technologies to increase retention of existing clientele. The advent of new digital banking processes does not mean that customers will drastically reduce the number of institutions they are currently banking with. Rather, customers are looking for better deals and loyalty programs within banking products and services.

61% of customers like the ability to manage their loyalty programs through mobile wallets and having digital loyalty cards, but only 21% of banks offer these features (Source: Amdocs Research). Nowadays more banks are focusing on providing mobile loyalty cards like moLotus loyalty cards and eliminating the necessity of customers to carry a physical loyalty card for regular purchases.

The future belongs to the new generations. Banks establish a long-term relationship with the millennials and Gen Z customers by keeping them engaged via moLotus breakthrough transformations. Customers are given digital rewards, mobile reminders, Frequently Asked Questions, real-time customer ratings, how-to, feedback via mobile and more.

5. Improved Customer Journey through Process Enhancement

Seamless digital experiences across every service and product are what customers look out for nowadays. Creating a digital customer journey means digitizing, automating, integrating and improving customer processes via digital transformation technologies like moLotus, Salesforce, SAP, etc. This helps banks to better handle the customer throughout processes. For instance, moLotus has digitized customer journey allowing a customer to sign-up for an account via one click, receive mobile video tutorials, mobile on-boarding, take instant loan decisions, make deposits, avail wealth management services, pay bills digitally and much more.

High-end customer experience, seamless service delivery, hyper-personalized product services, high security, transparency, result in customer lifecycle value maximization for banks.

6. Cost-reduction

Digital customer processes have brought in a noticeable amount of cost efficiency for the banking sector. It is worth mentioning the fact that moLotus powered mobile transformations have reduced outbound costs for banking enterprises by up to 30%.

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

7. Revenue Maximization

In this new digital banking era, banks are in a position to enhance their offerings and truly engage customers via automated and digitized processes. Global banking players have revolutionized funnel optimization by putting the customer at the center of their banking operations.

Bank customers are now accustomed to mobile onboarding processes and intuitive user interfaces. This exactly means more revenues and earnings for banking institutions. A recent study conducted by the Boston Consulting Group concluded that banks with powerful digital sales processes and seamless onboarding can boost conversion rates, enhance customer engagement and result in an additional increase in revenue of up to 15%. Interestingly transformation models powered by technologies like moLotus are growing top-line revenues for banking enterprises without compromising upon bottom-line margins. The transformation technology is generating high ROI by uplifting ARPU and Customer Lifetime Value.

8. Achieving Deep Customer Insights

The increasing volume of customer data is leading banking enterprises to digitize their business-critical processes. Banks need to focus on the concept of harnessing the customer data to add business value. They can do so by implementing Big Data Analytics for getting deep customer insights. Utilizing the right technology like moLotus enables banks to get the right business insights, which will facilitate smart planning & thereby boost the business performance largely.

moLotus data analytic models can be built on the available data to unleash business insights and achieve strategic business goals. Integrating moLotus Big Data Analytics implementation in the existing banking business models produces tangible financial results. This further fuels banks for enterprise-wide business transformation.

Conclusion

The past few years have taught banks that a solid digital transformation strategy with breakthrough transformation tools like moLotus is how they can thrive in a competitive digital landscape. Transforming customer processes to meet changing consumer demand, to quickly adapt to new-age technologies, and to respond to the evolving market conditions are the keys to digital transformation in banking.