Why differentiation in digital banking is the key to success

Why differentiation in digital banking is the key to success

Tailored banking experiences are the next step in digital banking because of the endless digital opportunities it brings to financial institutions.

Here’s how it happens.

Tailored banking uses customer data to create products for specific customers. To achieve that, structural flexibility is required for dynamic product creation. Banks are best served by using an architecture that enables them to build on demand. Not once, but all the time.? Then, the bank can address the constant and changing flow of customer data and needs. The boundaries between the core system and other sources of data, including delivery channels, must be fluid, including speed and flexibility.?

Today, tailor-made banking poses 2 significant challenges for banks. The first one is to have access to many different types of data that enable them to identify and anticipate clients’ needs. The second one is the ability to meet different kinds of customers' needs. We know that banks don’t make just one product so true transformation demands that the bank transforms its value proposition into innovative products. But which products and services? The permutations of data and products are infinite. Data, however, is key to identifying the right product, for the right customer, at the right moment, in the right channel.?

It’s proven that data-driven organizations are 3x more likely to report significant improvements in decision-making, and experience 2-3x above-market return on equity.

Why digitalization is changing business models

Differentiation in your bank’s value proposition helps your financial institution grow as your business needs dictate - whether you’re supporting hundreds of customers or tens of millions.

In addition to that, it will also help you increase your revenue streams:

• The connected bank: Become embedded in other ecosystems or operate as an operator in another brand’s embedded journey.
• The customizable bank: Embed tailored financial services, targeted to micro-segments and integrated into other’s value chains. Preferably close to the point of need.
• The insightful bank: Actively participate in the Open Finance/Banking ecosystem by mandate or market needs.
• The conversational bank: Know when to provide AI or human-based support in order to give the best customer experience.

Understanding your customer's needs, genuinely

Financial Institutions that lead in elevating customer experiences are able to deliver on what motivates and engages consumers through all of the human senses.?

The key to a meaningful banking experience that deepens relationships and drives customers into action is delivering on the whole experience in a unified and integrated manner when a customer needs it — not just in individual channels or how the bank wants to engage.?

In other words: think of meaningful experiences for the life of your customer, not products.?

For this to happen, a mix of digital and human interaction is needed and is always evolving. One way to do this is by using virtual personal assistants, powered by AI, that recognize voice and text, understand intent, decipher different languages, and know when to provide AI or human-based support for every customer engagement.

Why Technisys should be your long-term partner in this journey

At Technisys, we have been helping companies to be part of the modernization of banking for more than two decades. Our mission is to help traditional banks become digital and help other financial institutions get into the market with Cyberbank, our next-generation banking platform.?

Some of Cyberbank’s benefits are:

If you are interested in being part of the future of the industry, feel free to reach out to me and learn more about our solutions.