The Balancing Act: Omnichannel Banking along with the Digital Scheme of Things

In today’s age, customers want the best of both worlds – excellent and seamless omnichannel experience while experiencing rich digital features that encourage on-the-go banking along with personal human touch. According to a report by McKinsey, approximately 60% of all banking, customers use digital channels and 80% of all customer touchpoints appear on the digital platform. However, the final point of sales, happen at the branch or over a phone call. Therefore, in other words, the winning bank or financial institution is the one, which balances each division or channel to its strengths to provide the ultimate customer experience.

So what is the right balance that banks should look to focus on?

With the millennial and Gen-Z crowd taking up a massive chunk of the banking population, banks have to start understanding the financial situations of their customers. This starts with capturing and monetizing the everyday usage behavior – and that is where, banks should mostly spend their time and money on –  the customers.

Remember, approximately 92% of customers pick a bank for their digital services. A bank can rope in a majority of that 92% by implementing some digital winners while ensuring an omnichannel experience at all times.

A Personalized Recommendation Engine with Smarter Finance Options

Technology has always evolved to help humans make smarter decisions. Right now, that technology is at the fingertips of banks and the millennial crowd is more cautious than their previous generations on proper financial management. According to a study by National Endowment for Financial Education, only 24% of millennials are financially literate. If banks can successfully build a self-learning personalized recommendation engine, which churns out accurate insights for each customer uniquely, then the remaining 76% of customers would cling on to the bank as their financial savior.

Instant Payments

The second winner in my list would be instant payments and the reasoning is that, instant payments are still a very novel idea. With the total adoption of instant payments lying at 12%, there is still a lot of demand that banks can leverage – through fund and scheduled transfers, bill payment features and a virtual digital wallet. While the adoption rate can be linked with the banks’ worry that instant payments could cut the revenue from legacy revenue streams – card and wire payments, cross border transactions -, if banks don’t focus on instant payments, they are losing out on a myriad of opportunities and pushing themselves away from the center of innovation. It is Do or lose out to non-financial entities like Google, Amazon and Facebook.

An Open Bank

The final winner on this list would be an open bank – the current CX revolution that is enveloping the globe. By placing customers in the center and in complete control of their finances, open banking has emerged as the true winner over the past decade. While it may appear concerning in many ways for a bank, the concept of increased competition in the finance sector, and the plethora of options for the customers is a thing of the present and future.

Banks can leverage the open banking phenomena to their advantage through a thorough review of their CX avenues – onboarding, digital presence, and analytics. By understanding each avenue and building their everyday digital bank, banks can massively add on to the customer list that it currently caters to.

Final Thoughts

Banks need a one-stop solution that helps them to refurbish their entire customer experience. With a solution like The Everyday Digibank, banks can onboard customers in less than 5 minutes, offer the seamless omnichannel experience that customers are dying for, enable a completely personal digital platform with personalized recommendations, an open platform encouraging tie-ups with top non-traditional fintechs, instant payments on the go, and much more. Banks can achieve so much and can create a clear differentiating digibank that serves every financial need of their customer.