The digital age is offering retail banks of all sizes plenty of opportunities to better address the needs of their customers. Financial institutions that are quick to adopt digital core banking systems now have the ability to present modern banking applications, products, and services to the general public. At the same time, many tech-savvy individuals are on the lookout for service providers that will enable them to complete real-time transactions and access their updated financial information anytime, anywhere. Improving engagement between these two parties will result in a win-win situation for both. This will afford customers a greater level of banking convenience, and retail banks will be able to grow their market share and set themselves up for future success.
Just like the financial industry, however, the marketing industry is undergoing rapid transformation due to the ever-changing digital landscape. Reaching out to tech-savvy users may seem like a huge challenge for banks at this point, but quite surprisingly, the modern retail banking solutions that afford financial institutions enterprise-class operational intelligence across the middle and back offices can now also provide these same institutions with the tools they need to engage new and existing customers. Here are just some of the strategies that banks can employ to deliver customer-centric banking in the current digital age:
Ease Access to Quick, Reliable, and Affordable Interbank Transactions
Today’s retail banking customers are accustomed to enjoying a high level of convenience when sending and receiving money, paying bills, or shopping online. Sellers are well aware of this, so they are typically open to incorporating all sorts of payment methods into their online sales channels and even in their brick-and-mortar shops. Banks that make it easy for buyers and merchants alike to complete their online and offline purchases from just about anywhere are more likely to be used by retail customers to send and receive payments.
Naturally, a retail bank that has a reputation for offering quick and convenient transactions will attract customers who want to enjoy the same level of service. Also, partnering with online marketplaces and trading platforms will help improve a bank’s brand recall among the customers who frequent these digital spaces.
Leverage First-Party Data to Provide Personalized Value to Customers
To build a large customer base, it’s a must for retail banks to retain their existing clients. While financial organizations have to widen their reach, they should also make an effort to deepen the loyalty of their existing customers to their brand.
Retail banks that have upgraded their core banking system to one that’s designed for the digital age have all the tools they need to effectively and efficiently collect, access, and utilize the information of their existing customers. Retail banking services providers can use first-party data—the information that a company has directly collected from its customers—to analyze the wants and needs of their users. This information, in turn, can help them come up with products, services, and programs that will strengthen their connections with their existing clients.
To apply this data, banks can look into the touchpoints, such as search engines and social media platforms, that a particular customer demographic uses and create user-centered journeys based on these commonly used points of contact. For instance, they can launch a marketing campaign on these platforms that center on savings and accessible investment products for young professionals. This can help banks foster ongoing relationships with their customers and retain their business with them. Offering customers personalized banking experiences can seem like it’s a lot of work, but modern core banking systems are equipped to automate this process and make it more streamlined.
Incorporate Gamification Strategies into Financial Transactions
Gamification refers to applying game elements, dynamics, and principles to non-game contexts in an effort to improve user engagement, and it’s an effective strategy for retaining existing customers and attracting new ones. By using this strategy, organizations can turn what used to be menial tasks into opportunities to engage with people, train them, or improve their skills.
Retail banks have multiple platforms and programs where they can apply gamification strategies. How they’re going to use gamification, however, depends on their end goal. If a bank wants to promote a savings culture among its users, for example, it can offer incentives such as higher-than-usual interest rates to users who are able to exceed a particular savings threshold. Retail banks that are aiming to attract empowered buyers or improve the financial acumen of their existing clients can offer customers a chance to view or download informative and timely video lessons on financial literacy after downloading their mobile app or paying a monthly bill, for example. Financial organizations that aim to improve customer loyalty, on the other hand, can introduce programs that encourage users to do daily or weekly tasks to meet their specific financial goals. Such a campaign will help customers become more invested in the app and use it repeatedly to carry out their transactions, thus maintaining their streak and enjoying continuous perks and rewards.
Diversify Channels to Reach New Audiences and Markets
Finally, retail banks would do well to maximize digital platforms to market their products and services. In the digital age, reaching new audiences and markets often means engaging with them using both traditional and novel channels and platforms. . Instead of limiting the use of their social media accounts to advertise their services, for example, banks can use it to entertain questions, queries, and complaints or create a community around the brand. Banking apps can also be designed to be used throughout the customer lifecycle, from onboarding to subscription renewal, instead of simply functioning as a means to access a customer’s online banking accounts. Thus, simply by promoting the app, banks have a better chance of onboarding new clients. Still, though, every financial organization should make an effort to provide its audience with a uniform experience no matter what device or digital platform the said customer initially used to connect with the bank.
Strengthening their relationships with their existing customers and attracting new users are constant challenges for financial institutions. The good news is that most modern core banking systems offer retail banks the means to improve their engagement with their existing and new markets. With the tools and capabilities that these new banking systems are bringing to the table, it should be possible to carry out the basic strategies enumerated above.
