This is the age of open retail and digital banking and open data sharing. It is a question of how banks make use of this landscape to have a better understanding of their prospect as well as customers and personalize their service portfolio. While this appears to be a mammoth task in itself, there is another critical dimension that adds substantial complexity – the demographic pattern of the customer universe. Each demographic segment starting from millennials need specific attention. Without the aid of new age tools and platforms, it becomes a daunting task.
Banks are recognizing that to turbo-charge with a front wheel drive at supersonic speeds mandates opening their systems, both for partnering with Fintechs as well as lifestyle partners, who cohort with their customer universe. In many cases, this ‘ecosystem build’ is emerging as one of the key business units alongside their product management.
Customer centricity is the key aspect of banking. For long, banks while recognizing the importance of human interactions in a certain part of their portfolio (namely wealth management), took their eyes off it in other lines of business. To gain back relevance, banking leaders have to humanize across channels – be it the call centre, branch walk-ins, or the digital platforms. Thankfully, there are technologies available which makes this possible, across demographic profiles and linguistic segments.
The period of forbearance is over, and the reign of penalty is in. Further accentuated by the pandemic, the digital platforms today need to be real-time. So, while other options are available, the banks need to commit considerable investment and strategic oversight to accomplish their compliance towards regulations.