Balancing Tradition and Innovation : The Role of Digital in the Future of Banking
Vikram Nair , President , EMEA Business , Tech Mahindra
With the rise of technological advancements , businesses believed their customers would solely migrate to digital channels , causing offline business models to become obsolete . However , it has become apparent that customers seek more than the mere convenience provided by digital channels ; they desire human interaction and tangible experiences . This observation accentuates the critical importance of striking a balance between traditional and contemporary approaches , and of leveraging digital tools to complement , rather than supplant , the personal touch in banking services .
It is hardly surprising that numerous businesses , which initially launched as purely online entities , have progressively transitioned towards establishing physical stores and branches . This strategic shift aims to forge deeper connections with their customers and cater more effectively to their needs . However , this evolution should not be misconstrued as a diminishing relevance of digital platforms . The underlying issue resides in the perception of digital technologies by industries . Digitalization has often been regarded merely as a distinct channel , rather than recognizing its potential to enhance and complement physical customer experiences .
Businesses embracing a blend of physical and digital operations are setting themselves up for unparalleled success , outshining peers who limit themselves to just one realm . This hybrid approach broadens their reach and enhances their resilience , making them more adaptable and competitive in today ’ s dynamic market landscape . For instance , a banking mobile application built for small business customer onboarding can be used by the customer directly . Moreover , it can also be used by the branch staff to quickly and seamlessly onboard walk-in customers , allowing them to form relationships immediately .
Concurrently , real-time data analytics can provide inputs on other value-added services that might be relevant for customers , leading to cross-selling opportunities for banks and a smooth customer experience . AI-enabled processes can help the customers and the bank fill out applications faster with the help of information that otherwise might not be readily available . With an intuitive application that allows quick and seamless on-boarding , banks can now reach larger audiences which were previously inaccessible .
During our research work with one of the largest UK banks , the head of SME onboarding shared , “ it is imperative that we innovate , keeping our customer at the center of everything we do , crafting every experience with their journeys in mind , right from when they see us for the first time to when they have become long time customers , so that we can enable them in life , and do so with elegance and speed .”
To maintain customer-centricity , banks with a legacy of prioritizing their customers must embrace digital technologies . This will enable banks to cater to the specific needs and preferences of the customers and provide them with the best possible experience . With this , banks can ensure that their customers engage with them through the channel they prefer , thereby enabling customers to be their best selves . It is not just about going digital fast but leveraging digital to build a complete , wholesome customer experience .