Customers are Demanding a Digital Banking Experience
Customers are demanding a modern banking experience that delivers services, in the same manner, they are accustomed to in their day-to-day lives – on-demand, tailored to their needs, and in the palms of their hands.
The transformation to a digital bank is extremely disruptive for financial institutions who have historically provided services via disparate product lines with limited ability to share data about their customers. Small and mid-sized banks are further challenged as outsourced banking platforms are often leveraged thereby allowing the service provider to dictate the digital capabilities available.
The journey to digital banking involves:
- Transformation to a new customer-centric operating model.
- Optimized data capabilities delivering security, transparency, efficiency, and digital scalability.
- New digital capabilities providing omnichannel services and engagement.
The Digital Challenge for the Digital Bank
Now imagine instead of a retailer with a single line of business, you’re a mid-sized bank with multiple products available for your prospective customers: checking and savings accounts, mortgage loans, credit cards, student loans, just to name a few. In each of these service areas, customers are interacting with you via multiple channels (online, in a branch, over the phone) and their data is potentially stored across multiple systems. A comprehensive, single view of each customer is critical to effectively tracking, managing, and serving your banking customers. The challenges include:
- Measuring outcomes, not outputs
- Improving the experience of the customer
- Increasing trust and transparency
- Leveraging big data and analytics to improve decision-support
- Transformation of the banking operating model
Data Drives Digital Banking
A well-designed and effective MDM platform is a critical component of the Data foundation. Customer 360 is the key needed to unlock powerful and game-changing capabilities. Investing in a master data management solution for your Customer domain will pay dividends for decades to come by enabling a customer-centric approach to digital service delivery, a holistic approach to analytics and fraud detection, major improvements in operational efficiency, increased collaboration, and improved decision-support. Ultimately, investing in a well-designed master data management solution will ensure that financial institution is effectively leveraging data assets to serve every Customer.
The four key value drivers for the customer 360 model are:
- Customer-centric approach to service delivery
- Process optimization & operational efficiencies
- Holistic Customer Analytics & robust decision-support
- Identify fraud, waste, and compliance issues