Yaron Morgenstern is CEO of glass boxthe leading provider of digital experience analytics for web and mobile applications.
Six years ago, Deloitte conducted a study among financial services organizations on how digital technologies are impacting the industry. Only at that time 46% of respondents believe that their companies have been adequately prepared for the digital disruption. Now, the financial services industry has fully embraced digital transformation, incorporating cutting edge technologies at scale and setting an example for other industries looking for best practices for digitization.
The success of the digital transformation of financial services lies in the industry-wide commitment to providing a superior customer experience that prioritizes customer needs and preferences. Achieving this requires the right technical tools and a willingness to listen.
Adopt a fully digital, customer-centric approach
Banking, wealth management and investment institutions can be categorized as an old industry – slow to adapt, slow to change and sticking tightly to practices that were established decades ago. In the process of digital transformation, the industry has learned to listen to the needs of customers and meet their needs.
Customers rarely visit the branch in person anymore and most of them don’t want to. To retain customers, all services must be moved online – everything from deposits to loan applications to account creation. Other industries can learn from this approach, especially industries such as healthcare and insurance. Even if personalized services remain available, companies that develop a full-service digital experience and are committed to transforming their core operational technology will be better able to serve their customers. This will also make it easier to adapt to changing customer preferences.
Let data drive decision-making
In order to truly understand customers’ preferences and needs, companies must look at data. With the sheer volume of customer interactions that occur daily on financial services organizations’ digital platforms, executives can quickly become mired in data mounds, making it difficult to gain insights and make data-driven decisions.
To overcome this, most financial services organizations have integrated digital experience intelligence (DXI) solutions into their operations. Powered by artificial intelligence, DXI captures and analyzes 100% of digital customer interactions, providing a comprehensive view of the customer experience, and alerting teams to issues that need immediate attention. Executives can use DXI insights to make informed business decisions, to prioritize fixing technical bugs before they significantly impact revenue and to find revenue-enhancing opportunities based on customer activity.
For example, one of the large digital personal finance companies we worked with wasn’t aware that a technical issue on their website was causing a spike in incomplete loan applications. Using DXI, they were alerted to the problem and were able to understand the full scope of the problem. The business and IT teams were then able to fix the bug within a day, preventing a potential revenue loss of $9 million.
Companies outside the financial services industry must also include DXI as part of their digital transformation or risk losing the knowledge and key benefits of digitization.
Launching the Mobile-First Strategy
For financial institutions, a mobile first strategy is a must. Seventy percent of customers of the four largest US banks using mobile banking applications, with the use of banking applications growing at a steady rate. Mobile banking offers speed, convenience and a wider range of options than what is available on websites. Today’s empowered consumer expects to be in control and to be able to self-serve – getting what they want when they want it. A well-designed mobile app provides just that.
The future is mobile, regardless of the industry. When considering the best path for digital transformation, companies must lead with a mobile-first strategy, one that not only scales down the website, but thoughtfully takes advantage of mobile-specific benefits, including customization, built-in camera, GPS services and real-time alerts.
Find the right technology that does it all
In the early days of digital transformation, many technical and corporate solutions emerged, each offering a unique feature and service. In recent years, partnerships and mergers and acquisitions have bolstered those offerings to deliver greater value. The financial services industry – and its clients – have benefited from this.
For example, financial services companies use digital experience analytics technology to detect technical errors and detect fraud. Fintech startups are collaborating with larger players in the industry to share data and create new ecosystems that spur innovation. Comprehensive all-in-one solutions help businesses get more benefits for their money and lead to happier customers.
Prioritize security and privacy
Security and privacy can never be an afterthought in digital transformation, especially for financial services companies. When designing and developing digital platforms, companies must begin to focus customer journeys on privacy, consent, and security. Forester This is expected to be a major trend for the digital experience in 2022.
To support this trend, a new technology called reg tech has emerged to help financial services organizations facilitate regulation and compliance at lower cost and greater accuracy than relying solely on human monitoring. Similarly, financial companies use artificial intelligence-based platforms to monitor any fraudulent activity.
Rising concerns about data privacy and tightening regulations are affecting all industries. Even companies that consider their digital transformation complete must evaluate their approach to privacy and security for customer retention.
Transformation for the future
The financial services industry has undergone an impressive digital transformation in the past few years, but in order to consistently meet customer needs, financial institutions must iterate, adapt, and think forward. Other legacy industries are using financial services as a blueprint for digital transformation. Modernization and digitization are moving fast, and giving customers what they want shouldn’t wait.