It is important to have basic understanding of key digital banking aspects & how to apply them
With the banking industry undergoing extensive digital transformation, a serious rethink on talent is the need of the hour. Nowadays, banking professionals are expected to be tech savvy, rather than having financial skills and expertise. So, banks are redefining job roles and restructuring organizations to facilitate various digital banking initiatives.
An open, programmable and agile IT architecture can help banks become truly digitized. This openness will become the norm over the next five to 10 years. Banks are also joining hands with FinTech start-ups to provide better products and services to end customers. So, as you prepare for a striking cultural change arising out of digital transformation, acquiring these digital skill sets will set you apart as a banking professional.
Future Communication
As banks reduce their physical presence with people adopting mobile banking, it is important for bankers to effectively engage with customers. Sources say that over 65% of customers carry out half of their banking transactions online and about 70% are open to automated support. Moreover, mobile banking customers want improved basic functions, such as account opening and support. By engaging with consumers through digital channels, banks will be able to better map customer journeys and offer personalized products. Future-ready banks are incorporating advanced Know Your Customer (KYC) and multifactor authentication systems in their apps for continued customer engagement.
Digital Awareness
It is becoming increasingly more important for bankers to have a basic understanding of key digital banking aspects and how these can be applied to the business. In this connected world, digital platforms are becoming the preferred channel for reaching customers. So, digital marketing and sales become more important in delivering digital banking services. Besides, artificial intelligence is being used to provide contextual and holistic advice through chatbots. These are used in the best interest of customers, which is likely to promote brand loyalty. Although retail banking will remain mostly personal, there is a need to integrate digital knowhow. With new technologies coming up in the banking sector, professionals should familiarize themselves with these tools to know their short-term, as well as long-term, potentials.
Agile/Entrepreneurial Thinking
It is essential to have an open and adaptable mindset, especially in an agile organization where change is the only constant. IT companies note that the core objectives for most banks are to achieve organizational agility, which encourages innovation and talent upskilling to meet the needs of the ecosystem. A recent top MNC study notes that full-service retail banks may lose nearly 40% of their market share by end-2022 if they are not agile. Banks that continue to be non-agile are facing strong competition as digital disruptors keep offering better products and services. By adopting digital technologies, like social media, mobile applications and data analytics, banks are creating agile mindsets to stay ahead in the coming days.
Customer-centric
The focus of digital banking is customer-centricity and seamless customer experience through various channels. Such an approach requires banks to come up with products and services from the customer;s perspective. When banks include customers in their design process and blend customer needs, the products and services hold more value for customers. DBS DigiBank’s AI-driven virtual assistant that is able to hold ‘human-like’ conversations is a good example. Customers feel heard as the virtual assistant anticipates and answers about 1,000 customer queries. As new technologies become powerful, it would be important for banks to keep the human element alive while designing products for customers.
Risk and Governance
In this digital world, financial services face plenty of new security threats. Risks linked to synthetic identity fraud, cyber security and regulatory compliance may threaten a bank’s control over customer experience. So, banks will have to improve identifying between real and fake customers by using digital platforms. Moreover, possible cyber risks have increased manifold with greater connectedness and use of new technologies in the banking ecosystem. Most importantly, unmet regulatory expectations can put banks at major risks in terms of compliance functions. So, it becomes important for bankers to be able to understand and manage such risks in the digitization process.
Data-Driven Decision-Making
Banks use a great deal of data analytics in decision-making and problem solving. A data-driven approach towards customer segmentation helps banks deliver targeted messages to the right audience. Additionally, real-time data helps banks to be more agile and reduce costs in response to sudden changes. So, data skill sets are also important for generating information and delivering an improved customer experience. Technical talent has become important for banks to succeed in this technology-driven world. But intrinsic human skills should also be nurtured for a bank to succeed in the long run. Upskilling and retraining have become vital for bankers and aspiring banking professionals to work more effectively in the digital environment.