Looking out over the edge of a cliff. That’s what it feels like to be a retail banker these days.
Retail banks need three things to move forward: a vision for making banking more compelling to customers, a strong case for massive change, and an integrated customer experience.
#1 Define the Vision
The vision defines who the banks’ customers are and should be. The products and services that are most important to generating business value for customers should drive the transformation. Without a strong vision, the transformation will be seen as an IT project, one that’s too expensive to risk the business on.
To get buy-in for the transformation, retail banks must build a compelling, easy-to-understand narrative that tells employees and customers alike why the bank must change. Banks have traditionally responded incrementally to a series of must-haves, such as ATMs and online and mobile banking. This is why having a narrative is so important now. Once a bank constructs a story based on how customers want to interact with the bank, it’s forced to rethink all of its channels. That in turn provides the strategic and economic drivers for core transformation.
- Approvals don’t take weeks.
- Settlements don’t lag transactions.
- The bank really does know your name. here).
Creating more customer-focused business processes make it possible not only to deliver products and services more effectively, they also enable banks to tackle new market opportunities quickly. When Standard Bank of South Africa saw a competitor signing up unbanked or underbanked customers, it devised an banking process for opening accounts using mobile devices. The process makes it easy for people who live far outside of cities – and far from an ATM or branch office – to save money and make common transactions.
The e-banking challenge is not easy. But it becomes easier when you have a vision and a story for why it must be done. There’s money on the table for banks that can make the necessary transformation to customer centricity.
What’s holding your bank back from having an integrated e-banking face to the customer?
Learn more about how to become a customer-centric bank by reading the white paper How to Make Consumers Love Their Banks.
This story originally appeared on Banking View from SAP.