How Automation Is Helping Banks Improve Customer Experience
The banking sector is increasingly providing revamped services to its clients, enhancing its technological infrastructure in order to give banks and financial companies a competitive edge. According to a new study by Ken Research, automation and service segregation in the banking sector is seen to be improve customer experience.
The study researchers noted an uncertainty prevailing in the banking industry as many capital markets are being transformed and experiencing serious existential threats. At present technologies such as artificial intelligence and machine learning, block chain technology, collaborative ecosystems, demographics, and consumerism are the major driving forces affecting this sector.
A sea of change
Needless to say that the banking and financial sector is a zestful sector that regularly undergoes through a series of systematic changes. For instance, a few years back, banking brands were on par with most other industries in terms of consumer faith and brand value but the financial crisis in 2008 changed the whole scenario. Conveying a consistent brand experience is the biggest challenge faced by the banking industry. Regulation has been imposed on certain banks, urging them to monitor their activities and capital position more diligently.
Read more: Mobile, A Game Changer In Banking
At the same time, enhanced spending on infrastructure, rampant implementation of projects and continuation of reforms are expected to provide further thrust to growth. Growing usage of internet and mobile phone penetration has transformed consumer financial activity, allowing consumers and businesses to connect in new ways, the study noted.
Rise of more direct payment
In such a scenario, online transactions, mobile point-of-sales, digital payments and private block chain payment system will deliver a remarkable transaction volume by 2020, said Ken researchers. “There will be more direct payments which will automatically reduce the role of intermediaries. Incumbents along with increasing digitalization will be in the mainstream and dominant in the banking industry,” said the researchers adding that the role of the human trader is diminishing due to electronification of exchanges and algorithmic trading.
In this regard, the study further identifies two key Vendors delivering online services in this industry, Square and Paypal. According to the researchers, Square is the best used for business requiring mobility. It has many customizable features including inventory monitoring, the ability to take online orders, print receipts, report sales and set up automatic tips options; PayPal on the other hand, can be used to transfer and pay money to a friend.
Meanwhile, mobile banking transactions also declined since last year due to bank’s inability to keep up to the expectations of customers. Consumers also have preference for a bank which provides best in-class experience, integrated service and imposes less restriction for the new entrant. Banks either need to build their own competitive solutions, they can buy those solutions from outside or they can forge new partnerships, the researchers recommend.
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