Banks today are facing various challenges in order to increase their bottom line. Competition is severe, technology is changing fast and hence need quick adaptability, changes in socio demographic factors too are posing challenges for banks to understand customer.
Banks in developed countries are struggling to find growth opportunities due to stagnancy in economic growth. The youngsters are not banking early due to lack of employment opportunities, this delays there social growth too and hence curtails future opportunities of banking. They are delaying marriage, buying home etc, which is an eclipse to banking business. On the other hand developing countries do have tremendous opportunities of business growth but the dynamics of marketing have changed drastically for them or as a matter of fact for banking across world.
Peer to peer lending, mobile wallets and branch less banking fully operating on digital platforms is pouring salt on the wound. Many telecom operators have opted applied and even got banking licence, whereby they will be now offering saving interest rate and term deposit rate when you keep your money in their mobile platform wallet.
All these challenges have created a hard press need of adopting digital technology and integrate all the touch point to understand the customer and to serve them better. Customers today need brands to provide more value to them. More than 73% of people when asked told that they will not be affected if all the brands which were available today vanish out of market. May be because they don’t see value in these brands.
Astonishingly 23 billion text messages are forwarded everyday across world and 98% of them are read, but only 20% of emails sent are been read. This gives us hint of the preferred touch points and hence banks needs to focus on channels which delivers product closest to customers.
Banks will have to increase their product offerings by collaborating with merchants. Marketing has to be seen differently by emphasizing more on digital platforms. Social media has to be looked more maturely. It should not be only posting but it should me monitoring and engaging more with customer to understand them. Big data analytics based on data collected from various channel like traditional branches, mobile banking, internet banking, telephone banking, social media engagement, and ATM has to be exploited and integrated for understanding the customers in best possible way.
Success of banks thus depends about strategic alignment of technology and digitalisation in all the facets of their working.
BY – Prof Hitendra Lachhwani,
Ph.D(Pursuing), PGDM(Finance), M.Com(IBO),
SKIPS – Ahmedabad