How Digitization is Transforming Retail Banking

As digitization is paving way for the banking industry, the way banks communicate with their customers is rapidly changing. Contrary to the traditional means of communication via printed messages, banks are integrating modern communication channels, including email or now even web-based notifications that facilitate the customers with access to documents—anytime, anywhere. Besides, the continuous innovation in smart tech has boosted the expectations of customers, calling for more interactive and dynamic two-way communication. While one-way communication channels provide less scope for personalization, traditionally-followed communication practices, including in-branch consultations, are quickly losing their essence; forcing banks to adopt omnichannel communication systems as the trend is changing. What is challenging, though, to banks is the increasing demand of customers to have control over their communication with banks. To keep up with the expectations of individuals, banks must adopt innovative tools that offer them a combination of both the worlds to cater to the needs of varied customers—including non-tech-savvy—across channels. 

The banks are harnessing the potential of smartphones to offer flexible and seamless communication experience through apps as well as social media. Likewise, the innovative tech such as smart assistants and wearables—balance updates on smart-watch and chats with Alexa as examples—will change the banking technology landscape in future. Another challenge confronting the retail banking space is employing the right tools that can send more personalized responses to customers rather than generic ones. To fix this, the industry as a whole is making use of smart assistants such as ‘chatbots’ that provides tailored-made and more personalized responses.   

Flexibility, personalization, and interactivity are the need of the hour for banks to incorporate them into their communication strategy for a profitable and sustainable future. Further, the banking space is adopting disruptive technologies, including big data and cloud, into their IT infrastructure to improve on key metrics such as customer satisfaction, brand image, and brand loyalty.