The ROI of Omni-Channel Digital Banking
The expectations of digital banking have completely changed in the past couple of decades. Where in the beginning when the digital banking system was introduced, it was considered as an optional extension, it has now grown to become a ‘must have’ for the banking industry. Nowadays, customers are not interacting with the banks; they are carrying out the majority of their tasks online.
Omni-Channel is a seamless and consistent interaction between customers and their financial institutions across multiple channels. While multichannel is focused on transactions, omni-channel focuses on interactions. Providing omni-channel based customer experience is the central aim of digital banking organizations.
Impact of Attrition and Hidden Defection
It is the primary aim of the banks to attract more customers. The underlying causes are not always apparent when the growth levels are not impressive. Increased attrition is considered as one of the primary drivers. This is when customers leave the system and begin their primary banking relationship elsewhere. There is another type of attrition, which is more insidious; which is known as hidden defection. The banks tend to lose customers to competition when the customers don’t choose to buy the second, third or fourth product offered by the bank.
Customer Intimacy is Built Through Engagement
The banks have invested a tremendous amount of money into developing the digital portals that enable them to interact with customers and align the crucial and ‘high security’ transactions. The primary aim of these tasks is to improve and increase customer interaction at various levels. Banks who succeed in transforming their operations tend to become the trusted advisors to their customers. As a result of this activity, the customers tend to take crucial financial decisions based on outputs of their bankers. Banks have to keep up the pace with the ever-growing technology and stay relevant to the demands of their customers.
Onboarding: One Rate-Limiting Factor
It is very much possible that the digital onboarding process would leak the majority of its data unless it designed to be Omni-channel. In a way, it is acknowledged to motivate customers to buy further products, making them more valuable to the bank; Omni-channel is the precursor. In other words, the people who are not your customers, would not help you grow your ‘share-of-wallet’. An improved onboarding helps improve the organization downstream.
Majority of the interactions carried out by the customers is nothing but routine tasks. Each customer aims to get the tasks done as quickly as possible, and the bank seeksto execute each task as cheaply as possible. It is an established fact that most of the banks never achieve their target to execute the work reasonably. Banks still call their customers to bank branches to get their transactions done, which are required to be fully automated. The solution to this is the Omni-channel banking system, which incurs minimal cost on operations.
Omni-channel banking requires one-time investment to get the backend systems running, and it offers manifold returns in terms of business continuity. It instills a sense of belonging amongst the customers, which is the greatest way to promote their confidence in the bank. What else is required to get repeated business from the same customer?