The status quo in retail banking is under attack by digital. New business models, new competitors and unexpected partnerships are emerging on an almost daily basis. Digitally empowered consumers have more power and higher expectations.
To thrive in this competitive environment, banks and financial institutions must adopt a digital transformation (DX) strategy that will enable them to leverage digital technologies to understand and engage with their customers more deeply so they can deliver relevant, differentiated experiences.
Digital transformation in banking, however, is incredibly challenging. DX touches every business unit and function. It demands new skills and investments. It relies on complete and accurate data and appropriate metrics. To succeed, banks need a clear vision and a roadmap that charts a path to DX.
In a recent IDC Flash, Jerry Silva concurred with TCS Digital Software & Solutions Group’s position on three maturity levels for deploying an effective analytics solution. He said, One compelling aspect of TCS go-to-market strategy is that its vision lays our three maturity levels from 360-degree Customer Insights to Customer-Centric Operations to Deeper Customer Engagement. Each stage represents an increased level of sophistication.
1) Maturity Level 1: Develop 360 customer insights that result in superior customer interactions and improved targeting
To defend and grow their core business, banks need to provide exceptional experiences at every touch point of the customer journey. And, in order to do that, they need a comprehensive, 360 view of the individual customer and the customer base.
Gathering and analyzing all of the data availablestructured and unstructured, internal and externalis critical to understanding customers current needs and predicting their future needs.
What is needed is an analytics solution built on an open architecture that can accept structured and unstructured data. One that delivers real-time decision support based on insights on the quality of the base, the customer experience, product usage, channels of interaction, and the level of engagement through loyalty programs will help achieve this level of maturity.
2) Maturity Level 2:Implement customer-centric operations across banking processes to identify and eliminate process bottlenecks that affect the customer experience and reduce overhead costs.
To progress to the second maturity level of DX, retail banks need a customer-centric operational framework that maps product fulfillment related banking processes to respective departments for improved management and efficiency.
Banks need insights into trends of customer impacting processes over time and their impact on high value customers.
They also need an analytics solution that provides the ability to configure customer alerts that get triggered when critical processes or activities breach a pre-defined threshold.
3) Maturity Level 3:Deepen customer engagement by delivering differentiated, contextual experiences across the connected customer journey based on customer journey maps, customer experience monitoring and ecosystem development.
In this third stage, internal data and external data is integrated with new sources of information from a myriad of new sources e.g. city Wi-Fi data, partner data, social feeds and more to create customer digital personas for insights across customers end to end journeys.
This new wealth of information helps banks provide relevant services and products at every point of interaction through collaboration with an ecosystem of partners.
It enables banks to anticipate customer needs throughout their digital journey, and, most importantly, it helps banks deliver continuous value in a boundary-less world.
Advancing through these stages can pave the way to successful digital transformation. Banks that implement a clear digital strategy and deploy an analytics solution that is agile enough to help them respond quickly and cost-effectively to new technologies and ever changing customer demands, are the organizations that will thrive.
Learn what IDC has to say about TCS Digital Software & Solutions Group New Analytics Offerings in Financial Services and Smart Cities.