Increased use of smartphones and superior digital apps are driving the increase of digital banking. Digital banking is traditional banking activities and programs that customers were only able to do inside a bank are done online. Not only does digital banking drive revenue growth, but in our digital world, banks must adopt a new model that is more customer-centered. They must increase their online products and provide customers with more service channels.
Continue reading to find out ways to find digital banking growth.
This allows banks to enter new markets, potentially in other countries, without having to put a physical building in any of those new locations. Banks can create digital channels and new businesses to attract more customers in a short amount of time. Since these are digital channels, the banks do not have to create expensive storefronts. This way the banks can bring in income without having to put out additional income in infrastructure.
All banks collect data about their customers and how they use the bank’s services. You can use the data they collect for digital banking growth. By taking the identifying information you already collect about customers and using it to provide them access to online channels, you open a new world of easy access. This is like how customers log in to a new site using their Facebook or Google accounts. The new site uses their information from Facebook without the customer having to provide it again. Once analyzed, this data can help determine what credit cards or other goods the customers might want.
Broaden Financial Reach
Expand your digital tool selection to find digital banking growth. Offers the ability to apply for cash advances online to help with short term cash flow. Give customers access to innovative platforms to trade stocks and make investments. This gives customers an all in one place ability to handle their banking business. There may be a short-term investment for the web design, but when done properly, the bank could see a huge return on investment.
Focus on the Customer Journey
To find the most digital banking growth, you should be a part of the customer’s entire journey. Offer products that follow the customer through his or her entire life. Do not stop at checking or savings accounts. Consider offering home mortgages, car loans, and credit cards. Offer products that travel through the customer’s life, such as saving for retirement. Make sure your mobile app has mortgage and loan calculators that are easy to use. Provide online tools to allow the customer to take a picture of a house and the entire sales history comes up.
If you want digital banking growth, invest in a bill pay app that allows for real-time bill payment from your site for all your customer’s bills. Allow your customers to manage and pay their bills from your site. This prevents them from having to go to multiple sites to pay their bills. After a simple setup and with a single click, the customer can pay all bills.
It may seem like an obvious statement to suggest cloud computing to increase digital banking growth, but it is often overlooked. This provides an inexpensive way for banks to store large amounts of information off-site. This allows banks to become more flexible in storing and accessing confidential data. Google has been saving information to the cloud for years and information is available to customers on the fly at any time across any device platform.
Don’t Forget Your Infrastructure
Providing access to customers is not the only way to find digital growth. You can provide services to smaller banks or businesses. If you have a wider variety of services you offer, you can make them available via third parties. You can also provide your own infrastructure as a service to smaller organizations. An example of this is providing credit cards and processing to retailers, such as a local store. This opens a new stream of revenue and an opportunity to collect additional data.
Extend Beyond Financial Matters
Consider moving beyond just financial or banking segments. At the end of the day, banks are retailers and they offer products. You could consider offering a product that is not traditional for a bank, such as mobile phone services, or money management tools. You could consider a partnership with health care providers to create a platform where customers can easily pay their medical bills or apply for financing to pay those bills.
You should absolutely consider mobile wallets for digital banking growth. They are a critical need for any bank in this technological age. Mobile wallets provide a convenient online method for customers to pay. They are secure and provide customers with a sense of security. It is a quick way for customers to make purchases and the projected growth is over 500 billion dollars in mobile payments by 2020. This is a quick way to increase revenue. The transaction is fast, and both the customer and retailer can be sure the money is available. Businesses like Walmart are getting into the game with a mobile app to track gift card purchases and balances.
Create a Supermarket
A supermarket approach provides banks without a strong position in specific areas to grow in those new areas and complement their current offerings. This type of digital banking growth opens a market to you that is often missed because you can focus on products that offer high returns. This is basically a one-stop-shop for your customers.
You offer a mix of your financial products, in addition to some third-party options to provide the ability for your customers to address all their financial needs in one place. When you offer access to third party products, you do not have to take on new products but can still gain revenue.
This is the basic concept of looking at the products of up-selling your current customers and up-selling them on additional products. Your customer has a checking and savings account with you, but nothing else. It is incredibly likely that the customer has a mortgage, car loan, and a credit card. That customer may have all those things with several different institutions. It makes much more sense for that customer to have all those things with one bank – you.
Begin to offer those things, at a better rate, to your existing customer. It produces digital banking and revenue growth for you and provides convenience to the customer. You can offer discounts for multiple products and have a better idea of the needs of those customers. You can assist directly on your website to offer these products. You can have a chatbot interacting with customers to determine their needs and they can apply for it right online. They never have to work with a live agent. This brings about savings and revenue for you and convenience for the customer.
Like the concept above, you learn and understand your customer and then offer services based on their needs. When a customer creates an online account, offer electronic statements and ask them to opt-out of paper statements. This is a great way to see digital banking growth and create savings.
When your customer logs into an online account and there is an overdraft fee, offer overdraft protection. You can take it one step further. When a customer notifies you that he is traveling to another state or country, offer food recommendations for that location. This is a unique customer service you can offer that will not cost you any money.
Fintech organizations try to create digital banking growth for themselves at your expense. They are looking for banks that are antiquated and come in and swoop on your customers. Do not lose your customers to them because they have fancy online services that you do not. Creating a mobile platform for banking is relatively inexpensive and commonplace. If you do not have one, you are already behind. Keep an eye on Fintech and you will know what is considered old business. Make the changes they are making and keep them at bay.
Upgrade IT System
Get rid of those old systems, like Legacy and upgrade to something more current and relevant. Your old Legacy system will hold you back from digital banking growth. Those old systems will not talk to the new, more technologically advanced technology. You should consider making the investment and get rid of legacy systems.
Once you have made the decision to improve your digital presence, you must hire the right people to do the job. Do not have the random associate that dabbles in web design create a new platform for you. Hire people with the skills and experience to build your digital platform. Do not hold them back. Let them do the job you hired them to do.
When it comes to digital banking, it may seem daunting to you to find revenue growth. It is simple to create a robust mobile and digital platform that provides value for your customers. If done properly, you spend little money and reap a huge return on investment rewards. You also provide better customer service and one-stop shopping. It is important to do some research and move into digital banking with purpose and intent. If you do it without much thought, it will show somewhere along the line and your customers will go elsewhere.