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Why banks are aiming for a digital transformation?

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Banking is one of the oldest businesses in the world and needless to say, one of the most successful ones as well. And following the widely spreading digital revolution across industries, even the banking industry has been leveraging it to optimize its operations and augment customer experience. From in-branch banking to online and mobile banking, the digital technologies are redefining the way we bank.

Powering banks through technology and innovation is the modern digital driver – SMAC (Social, Mobile, Analytics and Cloud). It is not one of these attributes anymore that propels a business to digital excellence but a combination of all of the above, which fuels this revolution.

Let’s socialize

Social media has become the undisputed platform for brand communication, awareness, and customer acquisition as well as retention. It is also a trusted and authentic source for Big data and vital customer insights.

Bank in your pocket

Mobile banking is one of the biggest banking assets in today’s era that has made transacting easy for customers. With the luxury to bank even from the comforts of your home or office, you can make quick money transfers, easy bill payments and send service requests with a few taps on the screen. Mobile banking, along with net banking has saved the customers as well as the banks from the resource and time consuming in-branch banking experience.

Making banking sense out of data

Analytics has emerged as a major business enabler, helping banks decode customer satisfaction. It certainly makes it easier for businesses to target and sell their services to customers who are really seeking them. With the power of big data and analytics, banks can make smarter decisions, innovate their services and leverage predictive analytics for better risk management and strategy.

Banking in the Cloud

With cloud providing a safe and easily accessible storage, hosting and computing platform, banks are moving to a whole new operational ecosystem. Traditionally, banks have been relying on software algorithms to enable customers and employees to make smarter and quicker decisions, but, in this new age, cognitive computing (infused with data and cloud processing power) has made banking easier.

More than just a bank
The way customers perceive banks has completely changed. From being traditional financial partners, they have grown on to become financial advisors, wealth planners, and one-stop solutions for savings and benefits. With every card swipe or online transaction, they bring you a host of offers, discounts and customer benefits, making them the preferred gateway for all your payments and turning them into your go-to wallet. Payment apps and mobile payments have transformed transactions and wealth management, taking immense pressure of the banks, letting them serve their customers better. This is not only adding to their business, but more importantly, to their customers’ experience as well. The digital offerings of the new age banking industry has customer at its centre, and the offerings are built around this newly found business driver.

A bankable future

Banks are riding on the SMAC wave, and if they manage to harness its potential to the fullest, we could soon reach the shores of paper-free and digital branches in the near future. The days when wearables and sensors would ease banking operations and face-recognitions would end the KYC (Know your Customer) dilemma seem to be a future within reach. Digital banking is the way banks see their future as it opens the doorway to decreased operational cost, enhanced customer experience, and better service offerings. The digital transformation has already begun, and with innovations like these, the future virtually seems to be a customer’s paradise.

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