Customer Centricity in Banking and Data

Innovation has become a critical component of business growth in the banking industry. In the process of creating the 'next big thing' innovation includes the creation of value through:

New or existing products, recognizing the needs of the younger generation needs and allowing them to define their own – self-serve with an ability to define their own

Services, personalisation of products and services, avoiding cookie-cutter one size fits all mentality or?

Processes, aimed at improving the operational efficiencies, allowing digital experiences to their customers .?

The above said should improve:

· Customer and employee experiences,?

·?Back-office efficiency and?

·?Creating revenue opportunities.

Traditional and non-traditional banking providers are increasingly responding to fast evolving customer needs and behaviours by creating new solutions at speed and scale. With a challenger mindset, these organizations are continuously rethinking back-office processes to enhance products and services that build engagement and create better experiences.

The future of retail banking innovation has the foundation of internal and external data, advanced analytics, digital technologies and new delivery alternatives. Winners will be defined by how well they can rethink back-office operations and whether organizational leaders can embrace change. This also requires a shift from a product orientation to a consumer-centric culture.

1.?Success of innovation

a.?Centre of excellence for innovations

2.?Increased collaboration with 3rd?parties

a.?To bring in enough ideas.?

b.?To bring in breath of fresh air

c.?Understand where the competition is going. In some ways, customer expectations are the drivers for changing competitive landscape.

3. Increased importance of digital engagement?

a.?More power in the hands of the customer, better it is.?

4.Omni channel innovations across the customer journey

a.?As in the earlier days, customers are still involved emotionally with their banks.?

b.?It is just that the customers are expecting personalization of services independent of people behind the curtains at banks, but they still invest their hard earned money for wealth creation.?

5.Tectonic shift in banking business model

a.?A shift to a more customer-centric strategy is critical for retails banks to thrive.?

b.?Growing number of millennial and Gen-Z customers have very different expectations.?

?i.?They want total control over banking information

?ii.?A seamless and digital banking experience

?iii.?More diverse and innovative financial & banking products

c.?Retail banks being customer centric organization. Most organizations are mandated to be customer centric.

d.?Because of rapidly growing and shifting expectations, retail banks have to be on the edge to pivot strategically through creation of new banking channels, product innovation and even implementation of new organisation charts – for example someone to lead digital banking, data creation and consumption, chief operations officer thinking digital, head of customer life-cycle management

Leadership in Banks:

A financial institution’s leadership has a direct impact on the ability to create innovation and the success of innovations already undertaken. This includes both the top leadership of an organization as well as those in a lower supervisory position.??A culture that encourages new ideas and a challenger mindset is now essential.

In the process of delivering superior customer-centric approach, banks should develop and monitor client-centric KPIs, which would help streamline customer experience metrics and accurately identify areas of improvement. Some examples:

·?Monthly active users per product

·?App use duration per product

·??Time taken to obtain funding,?

·??Etc….

The above treatise brings us to the most important aspect - Utilisation of Data. Better utilisation of data allows banks to offer a more personalised and differentiated user experience — and a better UX keeps customers more engaged. Every interaction provides valuable data, which then helps inform how a financial institution can better personalise the experience and drive engagement.

Ready to change? Remember, always Winner Takes It All!