The banking landscape has also fundamentally changed due to heightened customer expectations, growing digital adoption, and a new breed of competitors.
Additional leading retailers and technology companies have set a high bar for the financial services industry to create better experiences and simple, seamless integrations that can make traditional banking activities easier.
However abundant opportunity exists for those able to position correctly in the quickly evolving landscape.
Today’s banking landscape is a complex blend of traditional practices of the 20th century and the digital innovation of the 21st century. The erstwhile banking system was extremely tiring and lengthy, frequently resulting in poor customer experiences. This was because one had to stand in long queues, file many papers and be physically present. The advent of net banking and mobile banking have reduced the time you spend on banking-related tasks and ensured hassle-free customer service even from a remote location.
You also do not need to carry cash; you can just make a digital payment from your E-Wallet. From goods and commodities to metal and paper, to plastic, and now electronic money, we have evolved and continue to do so.
Additionally, from an operational perspective, in the earlier days, banking was completely dependent on human accuracy and skill, and mistakes and errors were more apparent as human capabilities had a limit. We are prone to skip certain things or make calculation errors. However, with the introduction of computers, the frequency of errors has reduced to almost nil.
Another important perspective is that banks can now protect data much more efficiently. Today’s technology provides complete security of your transactions and safety of your data, so there are very rare occasions when the data is misused.
However, it is important to note that digital does not and should not mean a lack of personal interactions. Banks must replicate the physical experience, especially the responsiveness and empathy, in digital interactions.
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Hence, banks need to focus on workforce talent to ensure high-quality interactions with customers and create positive moments that matter. Even while going digital, customers continue to expect a blend of human touch with technology. Rather than do away with human interactions, customers are looking at how digital can drive high-touch interactions like an extension of service hours through virtual remote support and interactions.
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Hence, it is important for banks to accelerate the transition to a seamless omnichannel integration. We need to simplify where necessary and differentiate where valuable.
While banks around the world are in the midst of a sweeping digital agenda, realising the true potential of these changes remains elusive for many. Digital success is ultimately not about technology but about strategy as well.
Views expressed by Zuzar Tinwalla, Chief Operating Officer, Standard Chartered Bank
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