By Abhijit Singh

Digital technology is transforming the banking industry, offering banks more flexibility and convenience than ever before. Yet despite the clamour for digital solutions, many banks still rely on manual methods to manage their operations. If you visit a bank branch today, you still have to manually fill a form for a fixed deposit. This scenario is largely because of lack of digital thinking on the part of banks.

Banks have large, complex operations and making changes in legacy systems and processes can be costly and time-consuming. Therefore, many banks may prefer to stick with existing processes rather than risk failure and disruption. Additionally, banks are highly regulated entities, hence certain processes could be manual to protect consumers interest at the expense of a seamless experience. This can make it difficult for banks to provide the same kind of digital experience as consumer technology companies.

However, banks can still strive to provide more digital services and experiences to customers, despite regulations. Banks can look for ways to streamline the customer experience, such as allowing customers to fill out forms online or allowing customers to access their accounts via mobile apps. Banks can also use automation and artificial intelligence to help customers complete transactions quickly and securely. As organisations strive to become increasingly digital, they need to reimagine the job to be done.

Here are 5 ways in which financial organization can maximize their digital potential to enhance customer experience

1. Acquiring Customers Digitally: One of the most important ways is to acquire customers digitally. This can be done through a wide range of digital channels such as social media, email campaigns, and mobile apps. Banks can use these channels to reach out to potential customers who may be interested in their services. Additionally, banks should ensure that they are leveraging digital marketing techniques, such as SEO and content optimization, to ensure that their digital channels are seen by the right people. Furthermore, banks should look to optimize their digital journey for customers, making sure that the process to onboard customers is simple and efficient.

2. Quick Response to Service: In order to make digital work in large organizations, a quick response to customer service is essential. Banks must ensure that they have a customer service team that is easily accessible and capable of responding quickly and efficiently to customer enquiries. Additionally, banks should have an automated customer service system that allows customers to find answers to their queries quickly and easily. This can be done through chatbots, which can provide automated responses to customer queries and can even handle more complex customer service issues.

3. Cross Sell to Cross Buy: Another way to make digital work is to use cross selling and cross buying strategies. Banks should look to identify products and services that can be used together in order to appeal to a range of customers. For example, a bank may offer a package deal that includes a savings account and a credit card. By using cross selling and cross buying strategies, banks can increase their customer base and ensure that their customers remain loyal to the bank.

4. Ecosystems or Partnerships: Another way is for banks to build ecosystems or partnerships with other companies. This strategy can be very beneficial as it can help

to expand the reach of the bank, as well as provide customers with access to a wider range of products and services. Banks should look to partner with companies that offer complementary services such as insurance, investment options, or financial advice. By establishing these partnerships, banks can offer their customers a more comprehensive suite of services, which can make them a more attractive option for potential customers.

5. Big Users of Data: Finally, banks should look to become big users of data. Banks should make use of data analytics in order to gain a better understanding of their customers and the trends in the industry. This data can be used to inform decisions on product development, marketing campaigns, and customer service. Additionally, banks should look to leverage data to optimize their customer experience. By analysing customer data, banks can identify areas where they can improve the customer experience and ensure that they are providing the best possible service to their customers.

Ultimately, banks need to focus on delivering a positive customer experience, both digitally and in-person. This means using digital technologies to make the customer experience as fast, convenient, and secure as possible, but also making sure that customers feel confident and secure with their financial transactions. By doing so, banks can provide customers with a digital experience that is comparable to consumer technology companies.

The author is Chief Digital Officer at HDFC Ltd

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