The banking industry has been urging its customers to use digital channels such as mobile and Internet banking for several years now. They reduced costs and protected customer relationships by moving process-driven communication to digital media and keeping complex questions for the branch. Although many people welcomed the shift to digital, specific customer segments still preferred to visit their branch for even simple transactions.
When the pandemic hit, consumers had no other choice but to use their bank’s digital mediums.
As a result, many consumers now started interacting with their banks through mobile applications and websites. The increasing use of digital transactions during COVID-19 is expected to continue in the coming years, requiring banks to re-evaluate their banking activities.
Global Internet penetration, digital initiatives by governments, and a wide variety of budget smartphones are leading factors driving people to adopt, use and live with technology. Increasing global internet users makes several industries adopt technologies for business growth, better customer service, and engagement.
As per this report by Hootsuite, there were 4.9 billion active internet users worldwide, i.e., 59% of the global population. Of this total, 92.6% (4.32 billion) access the Internet via mobile devices.
Online and Mobile Banking Scenario
Technology plays a vital role in every industry in the global tech era. Mobile and Internet banking are just a few examples of ever-developing technology advancements. Mobile banking and Internet banking are the new ways of banking, as it makes it easier for customers to access their finances from anywhere.Â
Mobile and internet banking allow their customers to conduct banking activities such as account management, bank transfers, bill payments, and so forth, thereby saving their time and money by using their internet-connected smartphones/tablets and desktops.
The modern customer wants convenient and high-tech banking options. Many customers prefer speed, convenience, and security when making transactions electronically. Online and mobile banking exceed predictions. With the rapid growth in the technology ecosystem, banks are helping to improve data management, customer engagement, and retention.
The Financial Brand data details the pervasiveness of online and mobile banking, which is a development from traditional brick-and-mortar branch locations. The study also reveals that millennials are the top adopters of mobile apps.
Challenges faced by Traditional banks
– The Emergence of New Banking Business Models
Now, customers can simply register with a fintech company and take advantage of state-of-the-art services with the click of a button instead of standing in long queues for banking functions.
The emergence of disruptive banking models UPIs, Mutual Fund companies, Credit Unions, Lending Apps, and Cryptocurrency has begun to replace every single service from the traditional value chain, including savings, payments, investments, mortgages, and personal loans.
– Improper Customer Engagement
Customer satisfaction is a measurement that can be obtained by meeting consumers’ expectations about the services offered by the bank.
Customer service plays an essential role in the service industry; banks have to engage with their customers and deal with their issues immediately. The customer has to visit the bank for problems to be solved. These may not happen in traditional banking.
– Cost Saving
The banking industry always has a greater focus on cost-saving. Compared with digital banks, traditional banks incur a constitutive cost. These include lease costs or branch rents, staff salaries, maintenance costs, infrastructure costs, cash distribution costs, etc.
Why do banks need to drive customers to adopt mobile & Internet banking?
Banks have been encouraging their bank customers to avail the benefits of online and mobile banking services. Most people are using e-banking services as it is clear that it saves time, is cost-effective, reliable, and easier to use than conventional banking.
For banks, mobile and Internet banking helps get a higher income, larger markets, better customer engagement & retention, save more money and be more assertive in competitiveness.
Therefore, mobile and Internet banking have become critical to the banking industry’s development.
#1 Better Engagement
Better customer engagement offers innovative opportunities to establish business strategies focused on customer value co-creation. Engaged customers have great purchase intent and consideration.
#2 Be More Competitive
Increasing technology and digital capabilities enable the way your bank operates to function; this will help retain and attract more customers, especially the next rising generations. Additionally, Data Analytics, AI, and Machine learning give a competitive advantage over the competitors in the market.
#3 Personalization
The most successful organizations will have a holistic data and technology strategy that could personalize the data available from the Internet and mobile apps of the customers. Personalized and tailored offers, products, and services.
#4 Build Trust Before Selling
Educating customers on various means of online banking, electronic statements, methods of transferring money, notification alerts, and rewards programs with the help of screen tips and tutorials helps in building trust and loyalty. While this relationship grows, additional insights into customer needs can be collected whenever possible with personalized communication to upsell or cross-sell.
#5 Rewards and Recognitions
Companies’ rewards and recognition are strategic approaches to engaging and maintaining strong relationships with their customers. Customers regularly require additional encouragement to use a product or service optimally. As a result, rewards are often required to stimulate the desired behavior.
#6 Push and In-App Notifications
Because of the mobile consumption patterns, push notifications and in-app notifications are highly effective communication in building an engaging relationship with customers. Push notifications and In-app notifications act as stimuli for customer engagement and effectively drive website traffic. It helps provide helpful information, such as the latest updates, promotions, and offers, with a quick-to-the-point alert with a call-to-action.
#7 Digital Retargeting
Digital analytics assists in understanding consumer behavior. This makes it easy for businesses to retarget and reach out to the people who visited and left your website, didn’t respond to the landing page message, opened the mail but didn’t respond, and clicked on the online sales banner but didn’t perform the desired action.
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How can Upshot.ai help?
Upshot.ai is an omnichannel, user engagement, and gamification platform that helps digital product owners and marketers improve product adoption and conversions.
With Upshot.ai, banks and FinTech firms can enhance the digital experiences they offer with pre-built gamification features while providing personalized insights, actionable recommendations, and contextual nudges designed to deepen their relationship with their users.
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