11 Digital Banking Commandments You Have Not Heard 100 Times Before

There is no denying the intense pressure facing bank executives to digitise their operations. The Covid-19 pandemic, which has limited face-to-face interactions, has contributed to the shift in the battleground for attracting new customers to the digital environment.

In addition, the Asia Pacific region is on the verge of a revolution in digital banking as new challengers attempt to undermine the incumbents’ dominance of the data and relationship markets.

1. Lift And Shifting Digitally is not a Strategy

Digital offers a fantastic opportunity to create something original and set yourself apart from your rivals.

Start with the fundamentals and reframe how you view financial services rather than relying on analogue assumptions or digitising a legacy, paper-based process.

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2. There is no Inherent Good or Bad in Friction

Points of friction that have been carefully considered can be very useful for risk management and even reassure customers. Always assume that your clients are impatient and will leave if you keep them waiting.

Pre-filling forms and importing data can both save users time, and even small user experience (UX) enhancements like real-time address look-up can make a big difference.

3. In This Impersonal Channel, be Friendly

There is a reason why brands name artificial intelligence Alexa and Siri (AI). Making customers feel welcome and appreciated is the goal of personalization. Simple personalization, when prominently displayed, is the digital equivalent of a bank teller waving and smiling broadly at customers.

4. Honor the Data

Customers’ explicit or implicit data sharing is a resource. Show them that you appreciate it and are giving them useful information in return.

For instance, in response to China’s robust market demand for consumer loans, Home Credit China was able to streamline their loan process by using information from customer loan applications and fusing it with practical internal and external scorecards to more thoroughly underwrite and assess new clients with a thin file. As a result, the bank was able to lower the credit risk on point-of-sale loans by 25% and online loans by 15% while also lending to the underbanked.

5. Engage Me, Educate Me, and Satisfy My TikTok Addiction

Customers want to learn how to manage their finances through high-quality content, but they do not enjoy being preached at, so you should be careful how you write about financial literacy. While entertaining and quick videos are appealing, remember that you only have seven seconds to make a good first impression.

6. Make Wise Use of Your Branch

Using branches to serve your customers’ goals rather than your own can help you stand out from the competition. Make sure your fraud and risk management procedures don’t make customers visit your business unnecessarily.

Customer-led efforts across all channels are required. Provide seamless channel switching for your customers, but refrain from outlining their journey for them. Utilize technology to handle simple interactions while also making it convenient for customers to speak to a human being whenever they want (voice AI, chat bots, etc.).

7. Consider The Time and Effort of Your Customers

Make sure that the value your customers receive from each digital interaction is in line with the time and effort they have put in.

Be proactive in seeking out chances to improve their value and emphasise what they stand to gain.

8. Pester Your Clients But Only When They are Ready

People want to be informed when it comes to money, especially in a faceless medium. The right channels for timely communication will help reassure customers and give them a sense of control.

Always err on the side of excess rather than deficiency. When it comes to problems like alleged fraud and insufficient funds, be extra transparent to avoid unpleasant surprises. Create performance data by repeatedly asking “Was this helpful?” Supervised learning is used to train machine learning models.

9. Focus on Your Customers, Not Your Technology, for Inspiration

You need granular customer segmentation to know and interact with customers as individuals because one size does not fit all, or even most. Even the most cutting-edge technology cannot replace an intense concentration on and familiarity with your target market.

Make it a habit to constantly look for customer needs and pain points in order to stay on top of how unpredictable and changing customers’ expectations are.

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10. Encourage Customers to Feel Secure

At its core, trust in financial services is concerned with security. The development of customer trust must be a top priority for businesses that are entirely digital. Small details like lock icons can significantly impact how “your money is safe” is communicated.

Utilize the advantages that digital technology has to offer, such as geolocation data and behavioural biometrics, to create a little friction in the service of security while also building trust.

11. Work as a team, just like a symphony orchestra

Customers can painfully tell when a digital experience is fragmented. Spend money on orchestration and integration, and pay attention to the little things. To avoid having customers opt out or block your number, make sure you have a single “digital communications brain” managing customer interactions.