What is an omnichannel digital banking platform?
An omnichannel digital banking platform is a comprehensive banking system that provides customers with a seamless and integrated banking experience across multiple channels, such as web, mobile, social media, and physical branches. It enables customers to perform banking affairs and transactions through various devices and channels.
With an omnichannel digital banking platform, users can access various banking services, such as account management, bill payment, fund transfers, loan applications, and investment management. Additionally, it renders real-time alerts and notifications, and customized financial advice.
Why is omnichannel important for retail banking?
According to a survey conducted by Accenture, 83% of customers use digital channels to interact with their bank, and 52% use two or more channels to complete a single transaction. This highlights the need for banks to offer an omnichannel banking experience to meet customer demands.
Research also shows that customers who use multiple channels to interact with their bank are more engaged and likelier to be loyal. A study by McKinsey & Company also found that customers who use four or more streams have a 90% higher customer satisfaction score than those who only use one channel.
Moreover, banks that provide an omnichannel digital banking platform are likely to see improved customer retention, as customers, utilizing multiple streams are less likely to switch to another bank.
What steps should banks follow to become a true omnichannel platform?
To become a credible omnichannel, banks need to fulfill the following metrics to become pioneers in the industry.
Develop a customer-centric approach: Banks must shift their focus from internal processes to customer needs and preferences. By understanding customer behavior and facilitating them, they can tailor their services and offerings to meet their needs across all mediums.
Implement an integrated technology infrastructure: Banking institutions should have a unified technology infrastructure that enables seamless data sharing and customer interactions within different streams. This involves integrating various banking services and data sources, like core banking, mobile apps, online banking, and customer relationship management systems.
Prioritize data analytics and insights: The value of data analytics and insights to understand customers’ choices for banks is unprecedented. This helps banks to personalize their services and offerings, identify new revenue opportunities, and have better customer engagement.
Foster collaboration and communication: No matter what the count of baking branches is. Guidelines should be directed to cater to users and to foster collaborations and communications across all departments to deliver a consistent and flawless omnichannel experience.
What is the difference between omnichannel and multichannel?
The main difference between omnichannel and multichannel approaches is the level of integration and coordination between the different mediums.
In a multichannel approach, a bank offer different mediums for customers to interact with, such as a website, mobile app, call center, and in-person branch.
However, these channels are operated independently, with separate data sources and limited coordination. This can lead to a fragmented user experience, where customers may have to repeat information or experience inconsistencies.
In contrast, an omnichannel approach seeks to integrate and coordinate all channels into a flawless and compatible experience for the customer. This involves breaking down silos between different channels and data sources and using technology to enable a combined view of the customer across all channels.
With omnichannel support, customers can move between channels without disruption or loss of information and receive personalized and consistent service across all touchpoints.
What are the challenges of omnichannel banking?
The following are the common omnichannel banking challenges that need to be resolved for the best user experience.
- The integration of various technologies and systems
- To ensure exceptional communication across different departments
- Maintaining consistency in the customer experience across all channels
- Making possible arrangements for the security and privacy of customer data.
- Developing effective data analytics and insights to inform omnichannel strategies
- Complying with regulatory requirements to avoid troublesome situations.
- Managing the cost of implementing and maintaining an omnichannel platform
- Keeping up with rapidly evolving technology trends and customer preferences
- Addressing the cultural and organizational changes required to support an omnichannel approach.
What role do chatbots and AI play in omnichannel?
Chatbots and AI are critical in an omnichannel banking platform, enabling customized and efficient customer connectivity. Chatbots are computer programs that use natural language processing (NLP) to pretend human conversation, while AI refers to machine learning algorithms to analyze data and make predictions.
Chatbots and AI can be used in an omnichannel banking platform in the following ways.
Customer support: Chatbots can offer 24/7 customer support on different mediums. They can answer frequently asked questions, provide account information, and help customers troubleshoot issues. They are quite helpful and solve 70% of customers’ issues.
Personalized recommendations: AI algorithms are known for learning from data and making predictions. The algorithms can analyze customer data to provide personalized recommendations on products and services. For example, the bank could recommend a travel rewards card if a customer frequently uses their credit card for travel purchases.
What is the best example of a successful omnichannel banking platform?
Citibank is a great example of an omnichannel bank. Citibank’s mobile app allows customers to deposit checks, pay bills, and transfer funds. The app also provides a “Citi Quick Lock” feature that allows customers to lock and unlock their credit cards in real-time. This gives customers added security and control over their accounts.
Citibank’s online banking platform offers customers accessible reach to account statements, transaction history, and personalized financial insights. Customers can also set up automatic bill payments, transfer funds, and manage their investments online.
Omnichannel digital banking platform
In addition to its digital channels, Citibank has a network of branches and ATMs that allow
customers to perform transactions and access services in person. Citibank’s
branches also offer personalized financial advice and guidance to customers.
