Digital Banking Case Study
What kind of banks will survive in next 10 years?
By: ABHISHEK SHARMA, MDI Gurgaon
Word Count: 1060
Banking is the backbone of any economy which has seen many changes in the past decades. In such changing times, technology has emerged as the great enabler for banks. “Digital Banking” has become the new buzz word in the industry. Banks nowadays have been vying to transition from the providers of plain vanilla banking services to become universal banks where ATMs, Internet banking, mobile banking and social banking are the norm. The customers have become more demanding which has led to the concept of "Anytime Anywhere Banking". Smartphone penetration is also growing and the customers are looking not just for a product or service …show more content…
Digitization is challenging the way the banks have been traditionally operating. However, it also represents a significant opportunity. Digitization promises to improve and automate multiple banking processes. Due to this customer expectations and demands are increasing, and the technology is creating conducive environment for the emergence of significant new competitors. The past of retail banking was defined by expansion of consumer credit, the future one would be defined by digital. This would involve innovation in payments and banking systems enabled by digital technologies.
Within the next five to ten years, sales of banking products and services through digitization have the potential to account for majority of new revenue inflows in almost all geographies and customer segments. Future of banking would involve adding value to the customers through digital banking. The survival of banks would depend on how well they are able to adapt to these changes. Below are the four ways in which digitalization can be used by banks to create value for their …show more content…
Branches would still play an important role in the multichannel representation of a bank ten years down the line. When the customers would visit a branch, the stakes will be higher. They would be coming for sales and advice or to get a complicated issue resolved. The traditional banks’ front lines do not have the capabilities to meet these new challenges. In case the banks want to maintain their branches as a source of competitive advantage, they must build better frontline skills and capabilities to advise customers and address their service issues. Therefore, providing unified customer experience across channels would be the key in gaining competitive
By: ABHISHEK SHARMA, MDI Gurgaon
Word Count: 1060
Banking is the backbone of any economy which has seen many changes in the past decades. In such changing times, technology has emerged as the great enabler for banks. “Digital Banking” has become the new buzz word in the industry. Banks nowadays have been vying to transition from the providers of plain vanilla banking services to become universal banks where ATMs, Internet banking, mobile banking and social banking are the norm. The customers have become more demanding which has led to the concept of "Anytime Anywhere Banking". Smartphone penetration is also growing and the customers are looking not just for a product or service …show more content…
Digitization is challenging the way the banks have been traditionally operating. However, it also represents a significant opportunity. Digitization promises to improve and automate multiple banking processes. Due to this customer expectations and demands are increasing, and the technology is creating conducive environment for the emergence of significant new competitors. The past of retail banking was defined by expansion of consumer credit, the future one would be defined by digital. This would involve innovation in payments and banking systems enabled by digital technologies.
Within the next five to ten years, sales of banking products and services through digitization have the potential to account for majority of new revenue inflows in almost all geographies and customer segments. Future of banking would involve adding value to the customers through digital banking. The survival of banks would depend on how well they are able to adapt to these changes. Below are the four ways in which digitalization can be used by banks to create value for their …show more content…
Branches would still play an important role in the multichannel representation of a bank ten years down the line. When the customers would visit a branch, the stakes will be higher. They would be coming for sales and advice or to get a complicated issue resolved. The traditional banks’ front lines do not have the capabilities to meet these new challenges. In case the banks want to maintain their branches as a source of competitive advantage, they must build better frontline skills and capabilities to advise customers and address their service issues. Therefore, providing unified customer experience across channels would be the key in gaining competitive