Dig­i­tal Banking

The Economic Times - - The Edit Page - SO­NIA BARQUIN & VI­NAYAK H V

The dig­i­tal rev­o­lu­tion in banking has only just be­gun. To­day we are in phase one, where most tra­di­tional banks of­fer their cus­tomers high-qual­ity web and mo­bile sites/apps.

An al­ter­nate ap­proach is one where dig­i­tal be­comes not merely an ad­di­tional fea­ture but a fully in­te­grated mo­bile ex­pe­ri­ence in which cus­tomers use their smart­phones or tablets to do ev­ery­thing from open­ing a new ac­count and mak­ing pay­ments to re­solv­ing cred­it­card billing dis­putes. Among the peo­ple we sur­veyed in de­vel­oped Asian mar­kets, more than 80% said they would be will­ing to shift some of their holdings to a bank that of­fered a com­pelling dig­i­tal-only propo­si­tion. For con­sumers in emerg­ing Asian mar­kets, the num­ber was more than 50%.

Many types of ac­counts are in play, with re­spon­dents in­di­cat­ing po­ten­tial shifts of 3545% of sav­ings-ac­count de­posits, 40-50% of credit-card bal­ances, and 40-45% of in­vest­ment bal­ances, such as those held in mu­tual funds.… While it’s im­por­tant for banks to digitise their busi­nesses, cre­at­ing a new dig­i­tal-only banking busi­ness can meet evolv­ing cus­tomer ex­pec­ta­tions quickly and ef­fec­tively. This is es­pe­cially true in fast-grow­ing emerg­ing mar­kets where cus­tomer needs of­ten go un­met.

Launch­ing a suc­cess­ful dig­i­tal-banking busi­ness re­quires a mar­riage of tra­di­tional con­sumer re­search and a deep, real-time un­der­stand­ing of the be­hav­iour and pain points of in­di­vid­ual cus­tomers.

From “Build­ing a dig­i­tal-banking busi­ness”

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