8 must-have capabilities of digitally-driven financial institutions

Digital capabilities are critical for financial institutions looking to keep pace with the competition and meet the needs of digitally-savvy customers. Research shows that digitally-mature financial institutions are two times more likely to be profitable than their less digitally-mature counterparts.

So, what are the must-have capabilities for digitally-driven financial institutions?

1. A focus on customer experience

In the digital age, customers expect a seamless, personalized experience from their financial institutions. To meet these expectations, digitally driven financial institutions need to have a customer-centric focus and use data and analytics to deliver a personalized experience.

How can digitally-driven financial institutions create a better customer experience?

There are a few key things they can implement:

• A user-friendly website and mobile app: In today’s digital world, customers expect financial institutions to have a user-friendly website and mobile app. This means having a site that is easy to navigate and provides the information and services that customers are looking for.
• Digital data collection methods: Digitally-driven financial institutions collect customer data through online data intake journeys, social media, and other digital channels. This data is then used to understand customer needs and deliver a personalized experience.
• Omnichannel customer service: In addition to having a user-friendly website and mobile app, digitally-driven financial institutions also need to provide omnichannel customer service. This means being available on the channels that customers prefer, whether that’s phone, chat, email, or social media.

2. An omnichannel approach

Customers today interact with financial institutions through a variety of channels, including online, mobile, in-person, and call centers. To meet the needs of these customers, digitally-driven financial institutions need to have an omnichannel approach that allows customers to interact with the institution through their preferred channel.

One way to provide an omnichannel experience is to offer a digital assistant. A digital assistant is a chatbot that can help customers with tasks such as checking account balances, transferring money, and finding ATM locations.

3. A data-driven approach

Data is critical for digitally-driven financial institutions looking to understand their customers and deliver a personalized experience. Financial institutions need to collect and analyze data from a variety of sources, including customer interaction data, transaction data, and social media data.

Data must not just be collected, but also properly managed and stored. Data management includes tasks such as data quality control, data cleansing, and data enrichment. Data storage is the process of storing data in a secure and accessible manner.

The more data that financial institutions have, the better they can understand their customers and deliver the right products and services.

Artificial intelligence (AI) and machine learning are two technologies that are being used more and more frequently in the financial industry to leverage the power of data. AI can be used to identify patterns and trends in customer data, while machine learning can be used to develop predictive models that can help financial institutions anticipate customer needs.

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4. A focus on security

In the digital age, security is critical for financial institutions. Digitally-driven financial institutions need to have robust security systems in place to protect customer data and prevent fraud.

A data breach can have a devastating impact on a financial institution, so it’s important to have security measures in place to prevent breaches from happening in the first place. These measures can include data encryption, two-factor authentication, and biometric security.

Employee training, as well as customer education, are also important when it comes to security. Customers need to be informed on best practices for protecting their personal information and what to do if they suspect fraud.

5. An agile approach

In the fast-paced world of digital finance, agility is key. Digitally-driven financial institutions need to be able to adapt rapidly to changes in the market and customer needs. This requires a culture of innovation and a willingness to experiment.

No-code and low-code development platforms can help digitally-driven financial institutions be more agile by allowing them to develop and deploy new applications quickly and easily. Such development methods also make it easier to test and iterate on new ideas.

6. A focus on customer service

In the digital age, customers expect to be able to get help when they need it, 24/7. This means that digitally-driven financial institutions need to have a focus on customer service and provide multiple channels for customers to get help, including online chat, phone support, and social media.

Personalization is also important for financial institutions looking to create a great customer experience. By using data to understand customer needs, digitally-driven financial institutions can deliver a more personalized experience that helps build customer loyalty.

7. A commitment to innovation

In the fast-paced world of digital finance, it’s critical for financial institutions to be committed to innovation. This means being willing to experiment with new products and services and using data and analytics to drive decision making.

Tolerance for failure is also important, as not every new product or service will be a success. What’s important is that digitally-driven financial institutions are always learning from their failures and using those lessons to improve their chances of success in the future.

8. A culture of collaboration

To be successful in the digital age, financial institutions need to be able to collaborate effectively. This means sharing information and ideas across departments and functions and working together to solve problems.

A culture of collaboration can be fostered by using collaborative tools, such as online chat and video conferencing, and by encouraging employees to share ideas and best practices.

Digital capabilities are critical for financial institutions looking to keep pace with the competition and meet the needs of digitally-savvy customers. By focusing on customer experience, security, data, and agility, digitally-driven financial institutions can stay ahead of the curve and provide the best possible experience for their customers.