Digital transformation is more than about providing mobile and online functionality. Conventional financial service providers need to combine digital speed and convenience with human interaction to provide innovation and thoughtful caring in the customer’s journey.
To build a business strategy in digital transformation, these are some key priorities to be considered by leaders in FSI (Financial Service Institution):
A. Leveraging the power of data in vital areas
Financial service institutions can make better use of customer data to provide tailored solutions for customers. Data can be used to improve performance in several vital areas, such as:
- Client targeting
To identify potential connections to future customers, new data sources and predictive analytics can be used.
- Risk management
To anticipate failures more accurately, advanced analytics is used to analyze transaction data both in credit applications and in credit surveillance processes.
- Client targeting
B. Recreate the customers’ journey
For many people, when they do business with financial institutions, they expect the journey as what they experience in a marketplace like Amazon. They see it, like it, click it, buy it.
As leaders in FSI, you need to decide which one is the most important in your customers’ journey. The final goal is to effectively digitize the journey from the beginning to the end. Digitized journey increases customers’ happiness, it also lets staff do more important tasks, like cross-selling, while saving the money by streamlining processes.
To find the most impactful part of customers’ journey, leaders in FSI can look at the calls at customer center logs, transaction histories, and online data to identify the journey that is causing discomfort the most. FSI leaders can learn to digitize the one or two journeys, then tackle the next.
To reinvent the customers’ journey, financial service institutions must be willing to focus time and resources on three important areas:
To deliver an outstanding digital experience across the entire customers’ journey, financial service institutions need to rethink processes from a customer perspective. The customers have to be put at the center of all design decisions. A good example would be our previous project for a general insurance company to help them have a better relation & value to their B2B customers.
2. Innovative technology
It’s undeniable that technology is the most important part of financial service institutions. By focusing on using modern data-centric tech platforms, your FSI could try to think beyond the boundaries of your own industry. For your inspiration, read more here on our insight into how new technologies could be integrated into your FSI.
3. End-to-end process optimization
To improve the customers’ journey while keeping costs down, digital service institutions need to automate wherever possible. This automation will streamline processes, add speed and agility, and eliminate waste.
C. Reformulating the operating model
Customers increasingly want the best of two things. The first is human experience when advice is needed for more complex products or when they have an issue. The second is the digital experience when they need speed and convenience; for example, an easily accessible customer portal for leasing companies, e-money, and many more.
Financial service institutions must adopt an operating model that cost-effectively delivers products and services across channels. Consider the operating model that can keep up with the latest innovations and fast-changing customers’ needs.
Banks and financial service institutions that combine human interaction with digital functionality can reduce costs and increase customer satisfaction and revenue. Addressing the three consideration mentioned above will help ensure the digital strategy is delivered and benefit the business in a growing and developing digital world.
If you require consultation and help, contact us anytime to help your FSI reach a new technological height. WGS is an enterprise software solution company with a mission to strengthen our client’s IT capacity and capabilities, automate business processes, and allow innovate through technology. Contact WGS for more information about digital transformation strategy that is suitable with your financial service institution.