Sunday, February 22, 2015

Digital Banking III - How to get there?

Traditional banks are organized around money in branches.
  • Their thinking,
  • Their technology,
  • Their incentive systems,
  • Their knowledge about customers
are all structured around branches and product lines.

To become digital,

- Banks have to focus on electronic platforms and data as their core and branches as secondary.
- To get to an integrated electronic platform,  banks need to replace their old core systems.

Banks are shutting down branches
           - Europe closed 20,000 in the last four years.
           - Thousands have been closed in the U.S.
           - It has been predicted that banks will go from 1 branch per 20,000 customers now to 1 branch per 250,000 customers.
          - Banks will move to electronic channels where a transaction is much cheaper than one   performed by a teller.


Digital banking is more than getting consumers to use online or mobile banking or building a new app – it is a way to run an entire organization.

This new model touches product development, distribution, front and back office operations, marketing communication and the entire customer experience.

Image result for digital banking benefit

When engaging with a digital bank, consumers should benefit from the following:
  • Shop for a financial institution online or with a mobile device
  • Open a new account by using a computer, tablet or mobile device using image capture to save steps
  • Communication with their bank through the channel of choice, potentially with live video tools
  • Financial insights pre-login, such as balances, recent transactions and product recommendations
  • Real-time and secure transactions online or at the point of sale with a mobile device
  • Personalized and predictive offers that leverage geographic as well as contextualized insight
  • Real-time digital money management including alerts and notifications
  • Integration of financial services with daily activities.

Digital Maturity Model


Dell has developed a comprehensive Digital Maturity Model (DMM) to map a financial institution’s current digital state allowing an organization to develop a comprehensive action plan that is completely aligned to overall strategic goals.

digital_maturity_model



 

9 comments:

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thanks for sharing information,good blog..

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