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It is said that change is not an option but a necessity, not to win the world but to thrive in the world, and that’s why Fortune 500 CEOs say their biggest challenge is “the rapid pace of technology change”. The pace of technology change is a major driver for the changing nature of banking or digital banking. As demanding customers’ expectations continue to evolve, retail banking has followed the same path of innovation, leading to an era of digital banking and, recently, self-service banking.
Customer centricity is the new buzzword that is taking away all the attention of the industry with all the valid reasons as it helps companies to build trust & loyalty by putting the customer first and at the core of the business. Likewise, retail banking is also undergoing major disruption, as transactions are turning into experiences, and the traditional way of making money is eroding very fast, leaving no choice other than pacing up to provide the experience their customers are looking for, that is “digital banking on pillars of trust, sustainability, and fairness.” It will enable banks to harness the power of customer engagement and stay relevant in the fintech & digital-only banks disrupted industry.
Self-Service Banking is a user-centered and interaction-focused approach to banking that leverages a suite of solutions such as cardless banking, mobile banking, ATMs, etc. It is a result of the amalgamation of “banking with retail” and “consumer indication of preferences for on-demand banking services” like on-demand commerce & retail experience that consumers have been experiencing since the last decade. Self-service banking journeys should not be limited to only online/digital banking but rather an integral component of overall bank omnichannel digital strategy to enable experience banking at a broad scale.
Embrace Self-Service Banking
There is a paradigm shift in banking behavior toward digital, and the pandemic only expedited the push. Multiple studies have highlighted the fall in physical branches and the meteoric rise in digital banking channels. Gartner has specifically called out the top three factors that impact customers’ experience in self-service
Two other critical factors explicitly applicable to banking would be:
Ways to enhance the self-service experience:
In a nutshell, banks’ self-service should be on pillars of speed, efficiency, and convenience such that self-service banking becomes a transformation lever for banks in the digital world. As per a Gartner report, an overwhelming 96% of customers become disloyal after having a high-effort interaction, which indicates how critical the three pillars are for long-term customer loyalty.
Use cases for self-service banking
There are multiple other use cases such as “Get Rid of Overworked Call Centers & Inefficient Branches”, “Human touch from a distance”, “Move to as a service”, etc.
Benefits of Self-Service Banking
Advantages for Banks
• Deeper digital engagements with customizable journeys providing a richer experience to end customers and able to launch new products & services faster.
• Cost savings on physical Infrastructure (branches) and reduced transactional costs associated with the banks.
• Reduce the bridge between digital and physical experience into a seamless experience.
• Focus on complex customer needs by accelerating self-service banking.
• Transition from transactional banking to financial advisory leading to possibilities of more business opportunities with customers.
Advantages for Customers
• On-demand access to the majority of banking services.
• Less waiting times for support services and reduced dependency on support executives.
• Easy and convenient access – round-the-clock access to essential bank services.
The process of implementing self-service banking can be time & resources consuming and thus need strategic planning towards it. Banks can work with digital technology partners to integrate and leverage all the technologies at their disposal to provide an efficient yet differentiated experience.
Working as a Senior Consultant, Product & Platform Engineering at Brillio. GTM Strategy & Consultative selling professional with 5+ years of industry experience advising business & technology leaders on solving business problems by leveraging technology in innovative ways. He has vast experience in CIO advisory, alliances & analyst relations, large strategic deals, and business development.
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