The banking industry has been a significant beneficiary of technological advances. However, some of these advances come with several bottlenecks, despite them having a profound impact on the bank’s operations. Banks, like their clients, share these frustrations. Not only do some of these hiccups attract complaints from clients, but they also result in higher operational costs.
While most banks have computers and working systems, most of them still rely on old legacy systems. That said, here are some potential gains that come with the digitization of the banking industry.
Improved Customer Relations
Most clients today do not fancy using lengthy emails as their preferred channel of communication. In most cases, customers are tempted to abandon any process that employs email chains. In light of this fact, banks should embrace digitization to enhance the quality of customer service.
Offers a Competitive Edge
Most clients know what excellent customer service is all about. As such, banks need to focus on the quality of customer service. It is worth noting that the standard is not just about your direct competitors, but you also need to consider other aspects of modern life, including your social media presence. Consequently, banks that are reluctant to embrace digitalization face the risk of losing their customers to better banks.
Financial institutions are often subject to complex rules, most of which are often managed using excel-based checklists. As such, banks using manual methods are at risk of having high error rates, which could be over 50%. Most of the errors can be associated with human fallibility. Digitization of operations that are highly regulated goes a long way in allowing banks to focus more on customers and less on those conflicting requirements.
Aids in Cross-Selling Opportunities
Digitization has been instrumental in helping financial institutions sell several complementary products and services such as forex trading. As much as they stay ahead of the market trends, it also encourages excellence in the provision of essential services. Largely, these developments can prove instrumental as far as growing the company’s bottom line is concerned.