Question and answer
Digital banking has revolutionized the banking industry due to immense benefits that accompany its adoption. Digital banking has enhanced the joy of luxurious banking anytime from anywhere hence making banking easier. When a person is connected to the internet, online services are available all the time throughout the year. In addition, customer support team is available 24/7 to help address every issue a customer arises. It enhances higher interest rates because of the reduction in overhead costs and infrastructure when the bank goes online fully. It allows mobility of services because people can have virtual banking using their mobile phones. Digital banking is eco-friendly because it saves paper and discards office space and construction.
What is the ways to move to digital banking? And which one I the best? Why?
There are three main ways of migrating customer to digital banking and each way has its benefits and drawbacks. They include offering positive or negative incentives, setting positive defaults and providing interactive education. Providing customer with interactive technology has the potential of encouraging channel migration. This way can be achieved through interactive kiosks online or creating short instruction videos to orient customers to new channels. Creating particular online digital channels as the standard is important because customers will not opt for a channel of their choice that mostly puts many customers off. The best way is offering positive incentive because customers will be willing to transfer to digital banking to benefit either by increased interest rates in savings or reduced interest rates on their loans (Cognizant, 2015).
What is the key factor?
The key factors in digital banking are the online platform or system and the reaction of the employees to the system. Creating an interactive system that allows for ease of use is important and can enhance customer switching unlike having a system that is difficult to use. Employee behavior is critical in enhancing digital banking because the play a key role in educating customers and helping them solve or answer their questions concerning digital banking.
How to tell customers?
There are many ways of telling customers about digital banking. The bank may use a branch, twitter advertisements, short messaged (sms) or viral marketing through online videos. The best strategy to tell people is to use the branch because the customer can have the opportunity to listen from the employees and learn how the online system works.
References
Cognizant (2015). Retail Banking: Delivering a Meaningful Digital Customer Experience. pdf
