If you work or interested in the finance field, you may hear about “Digital Transformation” that is the transformation of business, processes, competencies, and models to make use of digital technologies. So Digital Transformation in banking and financial services has a great effect as we will discuss here.
Digital Transformation in Banking
Using digital transformation in banking depend on mainly 4 bases to build a strong strategy. We will discuss as follow:
Reinvent the Customer Journey
Banking aims to digitalize all customer journey so it determines what matters most at critical points in the customer journey and increase the lifetime value of customer with these steps:
- Prioritizing Customer Lifetime Value.
- Improving Customer Service.
- Building Relationships With Personalization.
- Rewarding Loyalty.
- Creating an LTV-Driven Team.
- Customers for Life.
Leverage the Power of Data
Analytics of data enable banking to better understand customers, identify business opportunities and reduce costs. also using data mining in targeting the customers by some steps:
- Meeting Details.
- Room Usage Analysis.
- Service Call Monitoring.
- System Performance Results.
- Inventory Tracking.
Redefine the Operating Model
Operating models are useful tools for helping managers understand how changes to one part of the organization might impact the value other parts are tasked with delivering. by some ways, you could redefine model to use in digital transformation as follow:
- Setting financial goals.
- Creating an innovation strategy.
- Developing a succession plan.
Build a Digital Driven Organization
Uses agile ways of working and an organizational culture that is willing to take risks. there are some keys to building a digital-driven organization:
- Have a clear vision.
- Establish data accessibility.
- Foster interdepartmental collaboration.
- Maintain your data.
- Implement a rewards system for encouraging internal competition.
Digital Transformation in Financial Services
Digital Transformation can also be used in financial services and this cause some financial trends we will explain as follow:
it is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile. Mobile banking is truly an environment where he with the easiest app wins.
it is a mobile payment application allows payments by means of a smartphone application. big banks and other companies can deal with it. users are required to connect a credit card and account information to their mobile number. Money transfers are performed by entering a mobile phone number which is registered in the system.
it is resistant to modification of the data. It is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. blockchain will prove to be a huge asset in digital payments, escrow services, loan processing, and just about every other area where valuable information or currency needs the utmost security.
it refers to data sets that are too large or complex for traditional data-processing application software to adequately deal with. Banking and financial institutions need to have the machine learning tools to process it quickly and accurately in ways that allow them to better serve customers.