November 2013 Issue

The 'Real-Time Data Analytics Newsletter' from CustomerXPs is your monthly insight on how Real-Time Data Analytics is re-shaping the customer experience domain.

This would keep you abreast of all the latest trends in Customer Experience Management space and help you leverage your customer experience efforts to the maximum.

Digital Banking in Asia


One of the surprises confronting banks in Asia is how quickly local consumers have adopted digital technologies. Mobile platforms have been critical: in China, 65 percent of mobile-phone users regularly access the Internet via their phones; while in India, mobile only Web browsers are expected to comprise 55 percent of the total Internet user base by 2015.

Rise of Mobile Banking


With the rise of mobile comes the rise of mobile banking. In 2011, for the first time in its 13-year history, the McKinsey Personal Financial Services survey found that Asian consumers were visiting branches less often than in earlier years. In mirror image, digital-channel usage increased by 36 percent in developed markets (where people now use digital channels more than branch and telephone banking put together), and 39 percent in emerging Asia, although on a much smaller base.

Surfing the web

The Internet is also playing an increasingly crucial role in the decision-making process. A 2012 McKinsey survey of Indian Internet users found that, for example, about 70 percent of users who had acquired credit cards in the preceding year used the Internet for product research, as did 66 percent of users who bought health insurance and 53 percent who took out personal loans.

Digital-Banking-Asia-Customerxps

Cross-channel Banking goes beyond pricing

Asian digital consumers’ eagerness to move across channels points to a deeper finding: when it comes to digital banking, consumer needs in Asia are increasingly similar. For instance, when asked about what they like about using their mobile devices, India’s digital-banking customers cited good customer experience, flexibility, and customization as the main features they wanted from digital banking. Pricing came in a distant fourth place, even among lower-income consumers. For wealthier, more urban “digital high value” customers, pricing barely even registered as a concern.

Digital-Banking-Asia-Graph-Customerxps

What Banks Should Do

 

Invest in IT:

Although banks have long been among the most voracious consumers of technology, launching a multichannel, digital-centric platform will necessitate whole additional classes of IT investment. Robust core banking systems must move beyond basic transactional and risk-management functions to accommodate advanced customization and straight-through processing. And they must support the big data and analytics needed in order for cross-selling offers to be relevant and timely.

Build on Big Data:

Yet the sheer quantity of data that banks will be able to see and integrate could allow them to leapfrog leading retailers. The big-data capabilities that a leading European bank recently implemented allow it to track its credit-card customers’ real-time purchasing behaviors, covering the categories purchased and their sequence down to the customer and street level.

Source: McKinsey

The Business Value of OmniChannel Customer Experience


The ability to deliver a seamless /consistent experience across multiple channels is a top challenge impacting customer experience management programs in both B2B and B2C environment. A recent research by Aberdeen highlights the importance and business value of creating a seamless omni-channel customer experience:

Omni channel customer interactions require firms to be laser-focused on addressing client expectations of receiving a consistent experience regardless of the interaction channel ...

Retail banks looking to invest in innovation to boost revenues


 

Retail banks across the world are increasingly investing in innovation as a means of generating revenue and controlling costs amid recovery in global economy, says a study by IT major Infosys.

Banks are looking towards technologies that can simplify their operations and deliver a richer customer experience. In particular, mobile innovation is beginning to gather pace, with 77 per cent of banks deploying or planning to deploy a mobile wallet solution, the ...

3 Mandates to be embraced for growing your bank


After several years of "holding the fort" post-financial crisis, banks are now looking ahead to the future. Pursuing growth and innovation in the current business and regulatory climate can be daunting, but KPMG recently issued a report with some advice on what banks need to do to succeed in both the immediate future and long-term. Here are some of the notable takeaways:

Embrace Change

For banks to effectively move forward and continue to grow the business, a culture that is ...

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