Today's customers are more likely to interact with their banks online or via their mobile than face to face in a branch. They demand real-time communications and transactions, and will shop around for the best service or price.
Banks are responding with different strategies. Some have patched their legacy systems; others have added digital services to deliver a multi-channel approach; a third group has embraced digital-only models, abandoning branches altogether. But whatever the strategy, all agree that to survive in the digital age they must provide seamless services at the lowest price to retain loyalty and win new business. It's about providing experience-rich banking - a new intimacy.
In Singapore, banks who have responded to consumers' increasing desire for digital engagement are reaping the rewards. The Development Bank of Singapore (DBS) reported a growth from 320,000 annual transactions in 2012 to almost 2.3 million overseas remittance transactions in 2015, attributing the rise to its focus on end-to-end customer digital experience. The Overseas Chinese Banking Corporation (OCBC), launched a first-in-market biometric authentication service in March 2015. Since its launch, the service has been accessed over 2.7 million times. OCBC's Android mobile banking app, launched in June 2015, had 100,000 downloads within the first week of its release. Overall, OCBC registered a 30 percent growth in their active mobile banking customer base and a 65% increase in online financial transactions by volume, resulting in a 60 percent growth in online banking revenue.
Key to providing experience-rich banking is having a unified digital command centre that focuses on the customer's demands and needs rather than on the transaction-driven core model of old. Those that embrace this customer-centric, unified approach will be able to compete with the digital disrupters and thrive.
Our recent study Retail Banking: In Tech We Trust, published with the Economist Intelligence Unit, found that half of retail banks worldwide believe that fintech will bring an end to branch-based banking and the majority predict that retail banking will become fully automated within five years.
Meanwhile, Gartner research has found that response rates to relevant communications that land while customers are already interacting with their bank are almost 15 times higher than response rates for non-targeted campaigns.
But many banks are not in a position to fully participate in this digital revolution because their IT architecture is not sophisticated enough. To succeed, their core strategy must go beyond omni-channel to be omni-present. They need to accompany the customer constantly - be that on websites, via mobile apps, social media or in chat rooms - to drive and facilitate cross selling and upselling. This demands a unified command centre, or "SingleBrain".
The "SingleBrain" command centre delivers a snapshot of all of a customer's activity, monitoring events via analytics and insight gathering engines. The data is analysed in real time and communications channels then respond with an offer within the parameters of credit and business constraints.
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