Shocking and unbelievable secrets of digital success in finance
The financial services industry (also called BFSI in short) is going through a silent but tremendous transformation with the advent of digital marketing as a key marketing tool across the globe. Many banks, insurance giants, asset management companies have already started finding themselves behind the race to those competitors who are leveraging ‘digital’ as a lifestyle. Often the bank and other financial institutions get it all confused to build and implement the ‘digital lifestyle’ for its customers and themselves. On the other hand, the success stories of few other companies are mind boggling and help us understand the secrets behind continuing digital success:
1. Investment rather than expense on technology
The success stories of few key financial institutions highlight the important of adapting to lifestyle of investment in technology and, specifically, on setting up of digital technologies and channels on a continual basis rather than as an annual expense. Given the changing lifestyle and demographics of customers, direct banking or touchpoint transactions are slowly wading. Hence, a humanised digital presence with your customer is the only way forward. With AI and data science heavily projected as digital drivers of future, it is time companies invest rather than spend on technology.
2. Improve User experience by making it simple
It’s essential that the user interface for any digital financial product be simple, intuitive, and easy to navigate. The fewer questions required to get to a solution and the less financial jargon, the better.
Technology should augment User experience and give customers more personalized choices — recommending products that are likely to meet their needs and allowing them to compare options. In lending, for example, this might entail displaying credit products with a variety of features, such as fixed and variable interest rates, different loan terms, and showing how different products impact interest costs or monthly payments.
3. Responsible use of data
With the advent of data science and AI, it is easy to use data in any probable way. However, given the privacy concerns of users/customers, and their sensitivity to the way data is used by companies, it is important that data be used very responsibly.
With the adaption to investment in technology, improvement of user experience and responsible use of data in every day ‘digital life’, banks and other financial institutions can replicate the personalised experience to customers of direct banking through bank branches that was the key secret to success.
Remember the secret is to transform from digitising human experience today to humanising digital technology tomorrow.
Rishi works with the BFSI sector and has more than 10 years of experience in varied products and processes. He has key success stories in client engagement and turnaround in the industry.