When grandpa finally pays his bills online… we know we woke up in a new (business) reality
Digital Banking Cure against Coronavirus – Episode 1
April 10, 2020
With the epidemic reality shock behind us, the vague shapes of a new business reality are emerging. Some temporary, some will be here to stay.
There is a vast array of activities we now do differently, and it is likely we will continue to do so – working from home, meeting online and doing whatever we can – digitally! Among other errands, people are also reluctant to go to their bank, which makes them more open to trying a digital app for the first time.
The financial institutions, with profound influence on everybody’s life, have a challenging role to respond to this situation, protecting life in more ways than one: literally, organizing work from home and minimizing physical contact to protect the health of both customers and employees, but also preserving the financial stability of both businesses and individuals in the hour of need.
And this might well be the time for traditional banks to step in, as the psychological element in consumer behavior now turns more to seeking economic security in familiar companies and the overall reduction of risk. Provided they are digitally available!
How to re-arrange the business model to accommodate customers in the financial sector?
The question in this article is not so much focusing on what (loan moratorium, industry-specific financing, shifting to digital channels, crisis appropriate communication) – but rather – how to execute in terms of digital infrastructure:
- Make digital channels available and user friendly to all segments of customers, particularly considering reluctant/elderly customer segment,
- Have the system in place to form new offers quickly to customers including contactless contracting,
- Automate request approvals,
- Digitalize internal processes,
- Ensure system security against fraud and unauthorized access.
Are your digital channels ready for new habits and new customers?
As stated by McKinsey, banks in China and Italy have seen 10 to 20% increase in digital engagement in the financial industry, so even if you are offering all-channel banking, now is the time to brush up on it.
Most banks have digitalized their operations to some extent, but increased demand may require them to go the extra mile:
- Offer smooth user experience – The current situation brings enough stress to everyone. Although there might be multi channels available to your customers, they are often different in appearance and offered functionalities, not easy to onboard/enroll and difficult to get used to. Digital Edge by Asseco offers a modern, user friendly solution that provides the same experience no matter which device/screen is being used. The experience that a customer has with your touchpoints is what triggers emotions and creates preferences that the customer does not bother to rationalize.
- Promote digital channels with appealing offers – There might be some of your customers that are more or less forced to move to digital – so make it worthwhile and attractive to them – you can offer 3-month free usage of mobile banking or similar. These types of promotions are easily executed through adequate digital infrastructure – having an analytical module for customer segmentation and automatic messaging across channels makes such offers quickly available to relevant segments.
- Be responsive and quick to offer relief – We have heard it all – recent articles in daily newspapers reveal that lately more people search for loan freeze than for coronavirus details. Using digital channels to proactively offer tailor-made loans is a good way to go. A digital sales tool for banks, such as Digital Origination by Asseco, allow banks to proactively offer special loans for selected customer segments, overdraft or other financial means to support customer through difficult times, all available from the comfort of their home, fully digital and automated.
- Don’t forget about the human contact – your unsettled customers will want to hear a banking expert’s voice, they will still need some advisory services, and if possible, maybe even see their face. Prepare your contact center, allocate and educate staff on your new offer and preferred channels, all while considering setting up a real virtual branch – having a person on aperson on a video chat available.
And after the crisis is over?
Last but not least – when companies get a grip on emergency changes, it is time to think about the future as well. Many experts agree that this epidemic “will change the world as we know it”. Looking at the financial industry, it is realistic to expect that our grandpa, along with many others, will continue to use digital banking and all other financial transactions. To prepare for the new habits now is the time for banks to improve their digital infrastructure. Consolidating user experience across channels, customer onboarding, sales process with automated approvals and removing friction will make banks not only ready for post corona times but also increase the pace of digitalization, making them readier to face the competition from non-traditional digital companies.
With so many options available, it is good to plan the digitalization steps with experts in the area. Asseco SEE has been supporting banks with modern, cutting edge solutions for almost 30 years, with a significant number of banks in the region already trusting our digital solutions.
For a worry-free start, send us your questions or schedule a free consulting call with us.