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Banking customers are increasingly opting for digital channels that fit seamlessly into their busy lifestyles as a result of globalization & changing customer needs. With provisions like mobile banking, online privacy and security, personalized financial advice, digital payment solutions, convenient remote banking accessibility, and full control over financial affairs; Banking Sectors are trying their level best to respond to the changing customer demands.
Common challenges to Omnichannel Banking
While omnichannel is the way to the future, many banking as well as financial institutions has been facing certain challenges. To overcome these barriers, banking sector needs to embrace a new technical infrastructure having enhanced data capabilities. This way, the Banking Sector can implement successful omnichannel management strategies.
Banks need to monitor and trace every customer interaction that means they also need to process and manage more data. Banks needs to store that data and retrieve it in real-time.
The data availability strives to provide a seamless customer communication journey. This is also a key element to omnichannel banking. However, it is not always straightforward implementing a successful omnichannel banking strategy. Also, banks can even lose their customers. For instance,
- A disorganized customer relationship management across divisions, geography, or product lines
- Technical complexity in order to connect experiences across channels
- In times of instant consumer delight, it’s quite challenging to deliver an exceptional and seamless CX through online, offline, social media channels, etc.
- Fragmented customer experience across channels often lead to unhappy customers
An Omni-Channel strategy helps drive exceptional customer engagement & better customer satisfaction
- Providing a unified method of collecting customer data, insights & preferences
- Predictive Analytics helps in unlocking opportunities to drive growth and also helps in improving customer engagement, experience, & loyalty
- An exceptional Omni-channel CX reduces customer churn & increases customer retention with better & faster first-call resolution (FCR), shorter call handle times, improved customer satisfaction and enhanced customer value
Some Key Benefits to Omni-channel Banking
- Channel Usage as per the Customers’ Choice
In Omnichannel Banking, all the channels strive to provide the same information and service. Customers can easily approach a bank branch regarding an issue and can call later to keep a check on the progress. The bank’s server will send a message to the customer in order to inform them that the issue has been resolved. Multiple channels are well connected in order to ease the customers’ journey.
- Enhanced Customer Support
Data collected from customers across multiple platforms is synchronized in real-time and can stored at a single place I.e., a server or cloud. Customers can approach any channel and can provide their account number. The support staff will be able to check the previously made complaints and they can easily update the customers on the current status of their query or complaint. They can see their balance or loan status on the same platform.
In addition to that, customers do not have to repeat their information or questions over and over again. Due to a centralized database, support staff I.e., both online as well as offline have full information about a customer. Henceforth, Omnichannel Banking seems to create a seamless user experience.
- Improved Data Collection
When customers interact with their banks via the website, mobile app, or social media platforms, their data can be collected and stored easily.
Data like customers’ preferences for products & services, online behavior, location, emotion, etc. can be stored with customer’s consent through multiple channels. Using Big Data, this can be easily analyzed, so as to get meaningful insights & for offering personalized services, products, or ads. This helps banks in providing a personalized service experience to their customers.
- Saves Time
Even chatbots can answer standard questions if there is a centralized database. Customer care executives can take charge of it if needed. The wait time in branches is reduced, thereby leading to efficient operations, saves time as well as cost. Omnichannel creates efficient use of resources as a result of readily available organized information. It also cut down operational costs as well.
- Improved marketing strategy & higher rate of conversions
Using Big Data Analytics; customers’ interests, behavior, and needs can be recognized. With customized offerings, marketing, and advertisements, banks can easily target their potential clients.
Take for example, when Rohan visits a car website, then the bank can analyze this data. After that, when Rohan plays YouTube videos on his phone, a car loan advertisement will automatically pop-up or play in between those videos.
Such type of tailored marketing approaches results in higher conversion rate. Omnichannel Marketing Strategy also reduces the marketing costs and can attract new customers.
- Customer Retention Rate is High
Customers are not impressed by any conventional service. Having an understanding of the clients’ demands and requirements will empower the banks to provide a personalized banking solution, thereby improving customer satisfaction.
Happy customers aren’t only loyal; however, they also recommend the bank to their friends as well as family.
- Increased Security
Omnichannel Banking facilitates Multi-Factor Authentication. It means that the user needs to provide more than one verification factor, so as to access the account. This secures the customers’ data and can also prevent any sort of cyber hacking.