‘Bank’s digitalization push must consider customers’

CUSTOMERS should manage expectations on the digitalization efforts of banks and financial institutions and realize that they will not experience flawless transactions all the time, executives of a data analytics company focused on credit scoring services.

“The secret is that sauces need to be simple. For the customer, it has to be fast and relevant,” Aashish Sharma, Senior Director of Decision Management Solutions for Fair Isaac Corp. (FICO) in Asia Pacific said in a recent webinar for business journalists in Southeast Asia.

According to Sharma, the onus is on banks, which must also pursue segmentation for customers to ensure better processing of their needs and requirements. He added banks could do it for certain portfolios. In terms of technology application, Sharma cited machine learning that could be used for verification.

Sharma said it is also quite important for the banks to get the feedback of the customers on their digitalization plans and provide time to enable their clients to get familiar with their new technologies.

“There has to be a certain period for learning. Technology has to enable the changes for customers. It is vital for traditional banks to help customers handle the situation. Banks should also bring the technologies they can deploy to help the customer in their personal journey,” Sharma said.

Market needs

SHARMA said it is also important for banks to realize that today’s customers demand convenience and personalization in their preferred channel. He said banks and service providers must deliver “fast, frictionless, engaging digital-account opening experiences.”

“Moreover, they need to be agile, future-proofed, and provide extensible solutions for business users,” he added.

Trust Bank Chief Risk Officer Lalit Lohia, meanwhile, said that aside from customers, it should be noted that markets have different needs.

“Markets like the Philippines and Thailand have different needs and customers will buy into what they need. You have the right offer to the customer and they will buy it. You have to be truly digital,” Lohia said.

He said the Philippine experience is different from the Singaporean situation as the latter is more advanced in digital banking.

Nonetheless, Lohia said the Philippine banking system has “a vibrant ecosystem” for fintechs, which benefits the country in the long term. He added the movement of money in the Philippines needs to be sent faster.

Lohia noted that the country’s young population, composed of digital natives, is helping the financial sector in its digitalization push.