Banking sector: How to set up an efficient digital strategy?

Banking sector: How to set up an efficient digital strategy?

The digital revolution is now a reality that affects every sector of the economy.  

In this new article, our experts take a closer look at the evolution of the banking sector, which has been impacted by a major digital transformation in its operations, a transformation that has proven to be necessary. 

 

Why does the banking sector need digital? 

A 2020 Accenture survey among about 48,000 people in 28 countries showed that customers now prefer digital means such as mobile apps and websites to interact with their bank. 

In Switzerland specifically, a study by Deloitte shows a decrease of more than 60% in the number of bank branches since 1990 and a 25% decrease in the number of employees since the same year. These figures seem to indicate that digital has taken over the old banking business models. 

The need for a new banking model has become imperative in order to face economic and social changes, and digital technology, in all its aspects, has become indispensable. The use of Big Data to better know the customer, offering faster and more secure payment systems, the use of robot-advisors to assist advisors, the development of participative platforms to finance projects, bank branches 3.0, digital marketing to forge one’s own identity, the development of e-Banking applications, etc. are all examples of how much digital has become part of the progress in the banking sector.  

Banks have naturally turned to digital to develop a more targeted omnichannel strategy. Nowadays, this gives them the ability to offer more than just services and products to their customers. An omnichannel strategy allows them to offer a truly personalized experience that meets the needs of their customers. More than ever, the banks’ mission is to generate sufficient profitability while building relationships based on regular interactions and trust with clients.  

Internet users’ expectations of the banking sector  

In the banking sector as in others, the explosion of digital channels has profoundly transformed consumer behavior and expectations. Mobile banking now appeals to more than half of all smartphone users, especially among the Y generation. Customers are now more autonomous, more unpredictable and more demanding. While the advent of the Internet has given them access to information, mobility has given them immediacy, and social networks have given them a voice. They no longer hesitate to change banks and to let it be known when they are no longer satisfied with a service or a product.  

In addition, customers expect to be able to solve any problem quickly online given the vast amount of information they have access to. This means that they expect a high level of reactivity and availability from their bank. Beyond reactivity, consumers are looking for simplicity, given their accelerated lifestyle.  

Which digital strategy to adopt for your bank  

In order to make your bank’s digital transformation as successful as possible, our experts suggest the following tactics:  

  • Opt for a customer-centric vision:  

Some banks tend to focus solely on bank-centric goals, while forgetting the importance of customer satisfaction. In this regard, there are several ways to engage with consumers while keeping the bank’s development in mind. It is enough to focus on other stages of the customer decision-making journey. For example, a bank can provide advice on how much to save for retirement, or the best loan to take out for a home, or help them determine the best rates and terms for financial products. The goal is to show that a bank is there to offer its customers the best possible services in a way that is transparent and relevant to them. 

  • Take advantage of customer databases:  

Use all the data you own about your clients to their benefit. Help them personalize their financial plans and long-term goals. For example, if you track someone’s spending history, you are able to recommend certain online banking products or services based on that information. You can also inform them when bills are due and when a credit or budget limit is reached. This feature will not only help your clients make clearer financial plans, but it will also demonstrate your personal interest in their financial well-being. 

  • Think mobile:  

A responsive website is essential for any business, including banks.   

According to an infographic from Formstack, 57% of internet users would not recommend a business with a poorly designed website on mobile. The same infographic indicates that 46% of visitors are less likely to browse other options when using a company’s mobile app.  

However, a well-designed mobile platform can be used to share information with customers, while sending them reminders for pending bills and payment updates, so they feel taken care of.   

 

A mobile app can also be used for in-app marketing campaigns to deliver personalized messages about your bank’s products or services.   

Also keep in mind that it’s easier and less expensive to up-sell and cross-sell to existing customers than to acquire a new customer. 

  • Focus on e-mail marketing:  

Despite all the technological advances, email marketing is still one of the most valuable marketing channels for providing valuable information to customers. You can make the most out of an email by integrating it with your other marketing channels to automate your sales cycle and lead nurturing efforts.   

Using emails can help you create individual customer profiles that give you insights about your customers’ spending and saving habits. With this information, you can create personalized messages tailored to your customers, instead of sharing standard emails that might irritate some users.   

In short, the banking market had to accelerate its digitalization, especially in the context of the sanitary crisis, forcing it to shift to a more agile and resilient model. In this context, some banks have already started to offer a 100% online service.   

If you are a bank or a financial company, Eminence helps you to have a 360° vision of your operations and guides you in the elaboration of an efficient digital strategy.   

Do not hesitate to contact us by clicking on the following link: https://eminence.ch/contact-agence-marketing-geneve/