Digital transfromation in banks or for that matter the industry of financial services are going through radical changes as like any other industry. Not long ago, every banking action required physically visit a bank and have a face to face interaction with the professional behind the counter. However, this had started to change from the 80's with the introduction of automated teller machines. On the whole, though, all the other operations by the customers like opening an account or issuing of new cheque books or applying for a loan or investing for an amount would all required for the person to go to a bank and meet one of the bank officers in person. This scenario has started to change drastically in a world connected to the internet. More and more banking services are being provided digitally. The financial services are well aware of this digital disruption and many banking corporations are aggressively experimenting and redesigning their customer service mechanisms as well as their purpose. However, nobody really knows how a future banking branch look would like.
Empowered customer and financial services
in a world, where customers are undergoing a radical change, overwhelmingly living digital lives and as a result, want to interact with brands and businesses digitally which has affected the retail banking sector as well. Today, banking could no longer be defined as by going to a particular place but by your specified action. Banking process was invented based on the paper and cash transaction system and it was designed to direct the customers. Generally, the bank would tell the customers what and how to do a particular business, which line they have to stand in, what forms to fill out and how long to wait.
But, the traditional concept of 9 to 5 banking structure is not valid anymore, because, customers are accessing their account at any time through online banking. Now, the bank must redesign all their business processes from a customer's perspective and it has an enormous impact on every aspect of the entire business.
What exactly does digital transformation in banking system means?
At the heart of a digitally transformed banking system is fundamental to improve the customer experience and enhancing their satisfaction. The system should find new ways to engage customers with their business, in a time and method they prefer. Offering this new level of convenience will help the customer to interact with the bank. In a digitally transformed world banking services need to realize that customers are empowered and informed and have multiple options to choose from, so, instead of waiting for them to come bank has to reach them. The study has shown that people will open more accounts, pay more for services and increase deposits with those banks or financial institution who invest time in them, assist them to formulate a realistic financial plan and help them find ways to save more money. So, even if you talk about automation and digital transaction finally, it comes down to personal relationships and personalized services.