5 Tips to Avoid Pitfalls in Digital Branch Transformation

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Banks can benefit from digital branch transformation, but they need to take care not to overdo it. Too often, this kind of project fails to deliver sustainable business value and ends up being superficial. Digital technologies offer a host of benefits to financial institutions and can enable new service, delivery models. However, they can also lead to costly pitfalls. Here are five tips to avoid pitfalls when implementing digital branch transformation projects. Incorporating these technologies into your branch operations will increase your bank’s profitability and give you a better customer experience.

 

1.Self-Service Zones

As online customers grow, self-service technologies will become more critical in branch operations. Whether it is the use of multifunction ATMs or mobile banking, consumers increasingly embrace self-service technologies. With these tools, most transactions can be completed without the interaction of a person. Other benefits of self-service technologies include extended branch hours and reduced staff headcount. Self-service technologies can also include biometrics, accurate personalization, and cordless transactions.

 

The shift toward self-service technologies is not new, but it requires some planning and careful consideration. For example, when launching a self-service zone, banks should not try to offer everything that the main branch does. Instead, focus on the most popular transactions and services in small-format branches. Then, brand these branches clearly with their branding and distinguish them from the central branch hub.

 

2.Customer-Authentication Technologies

A new breed of digital banks uses customer-authentication technologies to transform the way customers access their accounts. These technologies offer many benefits, from enhancing customer service to improving security. Customer-authentication technologies don’t collect personally identifiable information; they rely on complex algorithms to verify that the person behind the device is who they say they are. Banks that embrace this new technology will have the edge over their competitors.

 

The bright branch requires highly trained staff, with 90 percent of their time spent on analytics and targeted customer interactions. Self-service tools will allow customers to complete the shortest sales and service needs, eliminating the need for greeters and tellers. Employees will be empowered to do more than answer the phone. As a result, they will spend less time in front of customers, providing more extraordinary service to customers. Customer-authentication technologies help banks achieve these goals and become the customer service center.

 

3.Artificial Intelligence

While AI may sound like a far-fetched concept, it can transform how your bank. Specifically, AI can help banks tailor to customers based on their interactions with professionals and past data. For example, AI can detect whether someone has recently posted on social media about buying a home and then send them targeted marketing information about home mortgages, including instructions for applying online.

 

In a McKinsey study, companies that deploy AI in their branches will be 2.5 times more likely to feel competitive and capture opportunities in adjacent industries than those that do not. This pandemic will increase AI adoption, enabling organizations to create new skills and behaviors. AI will also enable them to share insights with different departments, which will create new opportunities for innovation and customer engagement. While AI will undoubtedly affect all aspects of a financial institution, its economic return on investment is just the beginning.

 

4.Big Data

Banks are increasingly using Big Data to improve their customer service and their bottom line with queue management system. These technologies can help banks get deeper visibility and combine different metrics to provide personalized customer care. This article will explore some of the benefits of using Big Data for banking. Ultimately, we’ll look at some of the most common use cases. But before we get into those uses, it’s essential to understand the concept behind Big Data.

 

Banks are increasingly adopting digital technologies liketo improve customer service, ensure cyber security, and enhance customer loyalty. It’s easy to imagine how banking customers used to operate fifty years ago. In one way, a typical customer walked into a branch and handed over their credit card to the cashier, who knew their financial situation. However, in a more recent era, a customer can interact with a bank in many ways – from mobile to online banking.

 

5.Internet of Things

The benefits of the Internet of Things technologies for banking are many. They can improve customer service, reduce fraud, and streamline operations. Banks can even create centers of excellence in crucial hub locations and extend these services to individual branches with interactive kiosks. This requires the integration of IoT and collaboration technologies. Banks and other organizations are considering the impact of IoT on branch operations. This article explores the opportunities and challenges of implementing IoT in banks.

 

Bankers may not think about IoT technology when they envision future bank branches. But financial services have already started investing in sensor technologies. In a recent report from PwC, the sector spent $1 billion on sensors. This is an excellent opportunity to use IoT technology in brick-and-mortar bank branches. Moreover, IoT-enabled branch transformation will help banks increase customer loyalty and boost customer satisfaction.

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