According to Capgemini, 76% of customers expect an omnichannel experience and 59% of customers expect on-demand, anywhere anytime customer service. It isn’t just about the convenience of mobile apps; it’s about creating a cohesive ecosystem where customers can automatically switch between various channels. 

Are you ready to dive into the world where banking meets brilliance? Let’s navigate the landscape of omnichannel banking and discover the future of financial services together!

What is Omnichannel Banking?

Omnichannel banking is a comprehensive approach to providing automated and integrated banking services across multiple channels, both physical and digital. It aims to create a cohesive and consistent experience for customers. Resultantly, customer can interact with their bank effortlessly through various touchpoints such as online platforms, mobile apps, ATMs, call centers, and physical branches.

In an omnichannel banking environment, customers can initiate transactions from one channel to another without any disruption. For example, a customer might start a transaction on a mobile app, continue it on a computer, and finalize it in a physical branch. They can complete all without losing any information or experiencing inconsistencies in the process.

Moreover, it includes a unified customer profile that is accessible across channels, consistent branding, and messaging. The integration of technologies like data analytics and artificial intelligence (AI) to personalize and enhance the overall customer experience.

It is driven by the desire to meet the evolving expectations of modern customers who demand flexibility, convenience, and a personalized approach to their banking interactions. This approach not only benefits customers by providing an automated experience. Also, it helps banks to optimize their operations, improve customer satisfaction, and stay competitive in the rapidly evolving financial landscape.

Benefits of Omnichannel Banking 

In omnichannel banking, customers can interact with their bank across multiple channels such as mobile banking, online banking, ATMs, branches, and more. Here are some key benefits of omnichannel for banks and customers:

Customer Benefits

1. User Experience

When you switch from multichannel to omnichannel banking, you ensure a frictionless experience for customers by providing a consistent and unified journey across various channels. Whether accessing accounts through a mobile app, online platform, or visiting a physical branch, customers encounter a transition without disruptions. 

This leads to increased customer satisfaction as users can effortlessly navigate and complete transactions.

2. 24/7 Accessibility

Customers gain round-the-clock access to banking services. Whether checking account balances, transferring funds, or making payments. Most importantly, users can perform transactions at any time through online platforms or mobile apps. 

This enhanced accessibility caters to the modern lifestyle. It offers convenience and flexibility to customers who may not adhere to traditional banking hours.

3. Personalization and Customization

Omnichannel financial services uses data analytics to understand customer preferences, behaviors, and needs. This enables banks to provide personalized services and offers tailored to individual users. 

It can personalize product recommendations to targeted promotional messages and customers experience a banking environment that caters specifically to their financial goals and interests.

4. Efficient Issue Resolution

In an omnichannel setup, customer issues, and inquiries can be efficiently addressed across various touchpoints. Whether through online chat, phone support, or in-person at a branch, banks can access customer information to resolve issues promptly. 

This efficiency in issue resolution contributes to a positive customer experience and fosters trust in the bank’s service capabilities.

Bank Benefits

1. Enhanced Customer Engagement

Omnichannel banking enhances customer engagement by facilitating interactions through multiple channels. Banks can engage customers through personalized communications, targeted marketing campaigns, and feedback collection. 

The ability to connect with customers across various touchpoints strengthens the overall relationship and encourages customers to explore additional services.

2. Operational Efficiency

Banks can achieve operational efficiency by integrating systems and processes across different channels. Reducing redundancies and streamlining workflows contribute to a more cost-effective and resource-efficient operation. 

This allows banks to allocate resources strategically. Ultimately, it improves the bottom line and ensures a sustainable and competitive business model.

3. Data-Driven Insights

This platform plays an imperative role in generating valuable data on customer behavior, preferences, and transaction patterns. Analyzing this data provides banks with actionable insights into market trends, customer needs, and areas for improvement. 

This data-driven decision-making empowers banks to optimize their services, design targeted marketing strategies, and stay ahead in a dynamic financial landscape.

4. Competitive Advantage

Adopting an omnichannel approach gives banks a competitive edge in the market. As customers increasingly seek personalized experiences, banks can deliver on these expectations stand out. 

A comprehensive omnichannel strategy positions a bank as innovative and customer-centric to attract new customers and retain existing ones in a highly competitive industry.

Importance of Omnichannel in Retail Banking

Retail banks always need to stay relevant, competitive, and responsive to the evolving expectations of today’s digital-savvy consumers. Let’s take a look at some key reasons: 

1. Enhanced Customer Experience

In retail banking, delivering an enhanced customer experience is paramount. Omnichannel financial services ensure that customers enjoy an automate and consistent journey across various touchpoints. Whether accessing services through online platforms, or in-person at branches. 

This unified experience contributes to higher customer satisfaction as users can effortlessly navigate through channels without encountering disruptions or inconsistencies. 

It goes beyond mere transactions and aims to create a positive and memorable interaction at every stage of the customer’s journey.

2. Improved Customer Engagement

The omnichannel banking platform provides multiple avenues for interaction. Retail banks can connect with customers through personalized communications, targeted marketing, and feedback mechanisms. The omnichannel approach enables banks to build stronger relationships with their customers. 

This heightened engagement translates to increased customer loyalty, as individuals feel more connected to the bank and are more likely to explore additional services.

3. Efficient Operational Processes

It is needless to say operational efficiency is a key advantage of adopting omnichannel strategies in retail banking. Banks can reduce redundancies and streamline workflows by integrating systems and processes across different channels. 

This optimization leads to a more cost-effective and resource-efficient operation for strategic allocation of resources. And, efficient processes contribute to quicker service delivery, faster issue resolution, and an overall improvement in the bank’s ability to meet customer needs promptly.

4. Competitive Edge in the Market

In fiercely competitive retail banking, having a comprehensive omnichannel strategy provides a distinct competitive edge. Customers increasingly seek personalized experiences, and banks that deliver on these expectations stand out in the market. 

A retail bank with an effective omnichannel approach is perceived as innovative, customer-centric, and forward-thinking. This competitive advantage not only attracts new customers. Also, it enhances the retention of existing ones to reinforce the bank’s position in the dynamic and evolving market.

Multichannel Vs Omnichannel Banking 

Multichannel and omnichannel banking represent two distinct approaches to providing banking services across various channels. 

Let’s take a closer look at the key differences between these two strategies:

Multichannel Banking

• Channel Isolation: Each channel operates independently. Online banking, mobile apps, and physical branches often function as separate entities, with limited integration.
• Siloed Customer Experience: Customers may experience inconsistencies when transitioning between channels. Information is not always shared which is leading to a fragmented and siloed customer experience.
• Limited Cross-Channel Interaction: Customers may need to restart transactions when switching from one channel to another. For some customers it causes inconvenience.
• Channel-Specific Focus: Each channel is designed to cater to a specific set of services. For instance, online platforms may focus on transactions, while physical branches handle complex services.
• Operational Independence: Operational processes for each channel are often independent. This can result in redundancies and inefficiencies, as information is not consistently shared across channels.

Omnichannel Banking

• Unified Customer Experience: Customers can transit between channels without disruptions, as information is shared consistently.
• Consistent Branding and Messaging: Branding, messaging, and services are consistent across various channels. This creates a cohesive brand identity and reinforces the same level of service, regardless of the chosen channel.
• Cross-Channel Integration: Omnichannel banking emphasizes the integration of channels for a continuous and interconnected customer journey. Transactions can be initiated in one channel and completed in another without starting over.
• Holistic Customer View: This enables banks to offer personalized services and targeted marketing across all channels.
• Operational Harmony: Omnichannel banking platform allows for smoother workflows and optimized resource utilization by eliminating silos and redundancies.

How to Select an Omnichannel Banking Solution?

Choosing the right omnichannel banking solution is a critical decision for financial institutions, as it can significantly impact customer experience, operational efficiency, and overall business success. 

Here are some key steps to consider when choosing an omnichannel banking solution:

1. Omnichannel Customer Experience Evaluation

Before selecting a solution, conduct a thorough evaluation of the omnichannel customer experience it promises to deliver. Assess how well the solution integrates and streamlines customer interactions across various channels such as online platforms, mobile apps, and physical branches. 

You should always look for features that ensure transition between channels, consistent branding, and personalized experiences for customers. An effective solution should prioritize enhancing the overall journey of the end-users.

2. Banking Technology Landscape Exploration

It is imperative to explore the banking technology landscape to understand the compatibility and alignment of omnichannel financial services with industry trends and emerging technologies. 

When you’re planning to select an omnichannel solution you need to ensure that the solution is built on robust and scalable technology. And. it is capable of accommodating future innovations. You can examine how the solution adapts to changes in technology, security standards, and regulatory requirements for long-term success.

3. Risk Tolerance and Cost Framework Establishment

Define your organization’s risk tolerance and establish a transparent cost framework before selecting an omnichannel banking solution. Also, consider potential risks associated with implementation, such as disruptions in services or data security concerns. 

Assess the total cost of ownership, including initial setup costs, ongoing maintenance expenses, and any hidden fees. Align the solution’s features and pricing structure with your risk appetite and budget constraints to ensure a financially viable and secure investment.

4. Potential Suppliers and Service Providers Assessment

Evaluate potential suppliers and service providers offering the banking solution. Consider factors such as vendor reputation, reliability, and scalability. Assess their track record in delivering similar solutions and their ability to provide ongoing support and updates. 

Look for references and case studies to validate their success stories. This comprehensive assessment helps in selecting a vendor that aligns with your organization’s goals and values.

5. Strategic Planning for Effective Implementation

Plan strategically for the effective implementation of the chosen omnichannel banking platform. Outline a detailed implementation roadmap that covers key aspects like user training, change management, and contingency planning. 

Consider how the solution integrates with your existing systems and processes, minimizing disruptions during the transition. Define clear milestones, allocate resources effectively, and establish a communication plan to keep all stakeholders informed throughout the implementation process.

Challenges of Omnichannel Banking 

While omnichannel banking offers numerous benefits, it also comes with its fair share of challenges. Some of the key challenges include:

1. Integration Complexity

Integration across various channels, such as online banking, mobile apps, and physical branches, poses a significant challenge. Connecting diverse systems and ensuring a unified customer experience can be complex and resource-intensive.

2. Data Security Concerns

It involves the exchange of sensitive customer data across multiple platforms. Ensuring robust security measures to protect against cyber threats and unauthorized access becomes a critical challenge in maintaining trust and compliance.

3. Consistent User Experience

Providing a consistent and cohesive user experience across different channels is a challenge. Users expect a unified journey, and discrepancies in service, features, or interface design can lead to frustration and dissatisfaction.

4. Regulatory Compliance

The banking industry is heavily regulated, and ensuring compliance with various financial regulations across different channels can be demanding. Staying abreast of evolving regulatory requirements and adapting omnichannel strategies accordingly is an ongoing challenge.

5. Technology Adoption Hurdles

The rapid evolution of technology introduces challenges related to the adoption and adaptation of new tools and platforms. Banks must invest in cutting-edge technologies while ensuring that staff and customers can embrace and utilize these advancements.

How to Achieve Omnichannel Banking Successfully?

If you want to achieve success, you require a series of essential steps. You need to focus on different aspects of the banking experience. Here’s a detailed guide to help you get there:

1. Define Your Omnichannel Strategy

You can start by outlining what you want to accomplish with omnichannel banking. With it, you can get enhanced customer satisfaction, better operational efficiency, or reach new markets. So, you will have to examine all customer touchpoints and interactions to ensure a smooth experience across channels. Your omnichannel strategy should align with your bank’s overall goals and vision.

2. Focus on the Customer

In this stage, you’ll have to gather insights through surveys, focus groups, and feedback to understand customer needs and expectations. You can use this data to provide personalized services and products. This will play a crucial role in boosting the overall customer experience. You must design your services emphasizing ease of use, convenience, and customer happiness.

3. Data Analytics and Insights

If you want to succeed in omnichannel banking, you must collect data from every customer interaction across various channels. Afterward, you can utilize analytics tools to gain insights into customer behaviors, preferences, and trends. Plus, use these insights to make well-informed decisions, tailor services, and predict future needs accurately.

4. Engage in Omnichannel Marketing

It is quite important. You need to maintain consistency in your marketing messages across all channels. So, how to do that? You can develop campaigns that utilize multiple channels to reach customers wherever they are.  You can use these data for targeted marketing based on individual preferences and behaviors.

5. Provide Omnichannel Customer Support

Undoubtedly, customer support is key to achieving omnichannel banking. You must implement a support system that offers consistent service across online platforms, phone lines, or physical branches. Always place it a high priority to provide robust self-service options via mobile apps, websites, and ATMs. Also, ensure round-the-clock support availability on different channels.

6. Integrate Technology Infrastructure

In this phase, you need to adopt a centralized database to maintain data consistency and accessibility across all channels.  You can integrate APIs for various systems and platforms. It will ensure a smooth service delivery. And yes,  you should consider cloud-based solutions for greater scalability and flexibility.

7. Enhance Security Measures

Data security is vital in banking. You must protect all customer data with encryption both during transmission and storage. To achieve this, you can utilize multi-factor authentication (MFA) for an added layer of security during logins. Most importantly, don’t forget to conduct security audits and compliance checks regularly to identify and mitigate vulnerabilities.

8. Train and Engage Employees

Well-trained employees can be a game-changer. You must offer training programs for employees on omnichannel tools, technologies, and best practices in customer service. You should train employees in the omnichannel strategy. So, they understand its significance and their role in its success. You need to build a culture of continuous learning to keep pace with technological advances and evolving customer expectations.

9. Implement Scalable Systems

Choose modular system architecture for easy scaling and integration of new channels and services. In this case, you can invest in adaptable technologies that can adapt to future banking industry changes and growth. It is necessary to monitor system performance continuously to ensure smooth operations during peak times.

10. Transform Physical Branches

If you are managing routine transactions digitally, you need to shift the focus of physical branches towards advisory roles and complex services. To resolve it, you can equip branches to provide the same level of service as other channels. Essentially, it will ensure access to the same customer data and support tools. So, you will have to train branch staff to assist with digital channels effectively.

Staying on Top of Omnichannel Security

Security is one of the biggest concerns. How do to deal with it? What key measures need to be taken to stay safe and secure from any potential threats? Let’s take a look at some important aspects to stay on top of security. 

1. Address Mobile Weaknesses

Fixing weaknesses in mobile banking should be the top priority. In omnichannel banking, mobile is a crucial channel for its massive use and constant connectivity, and it often faces risks. To protect against these threats, banks need to enforce strong encryption, multi-factor authentication, and consistent security updates. Most importantly, educating customers on how to safeguard their devices and identify phishing attempts is equally crucial for banks.

2. Secure Established Channels

Securing popular channels like online banking, ATMs, and call centers is just as important. These systems require robust security measures, such as end-to-end encryption, secure access controls, and continuous monitoring of suspicious activities. In doing so, banks can keep these channels and ensure overall security integrity.

3. Forecasting Future Trends

Being forward-thinking about future trends is essential to staying ahead of new threats. Banks should invest in cutting-edge threat detection technologies and artificial intelligence to foresee and counteract emerging security challenges. If the financial institution stays updated on the latest cybersecurity trends and incorporates proactive strategies into the security framework. It will enable banks to swiftly adapt to evolving dangers.

4. Engage With Customers

No doubt engaging with customers plays a key role in maintaining security. Banks should regularly communicate with customers about best security practices, updates, and potential risks. They can share valuable resources and support to help customers protect their personal information and report suspicious activities. Remember, building a culture of security awareness among customers can greatly reduce the likelihood of breaches.

Present and Future Omnichannel Banking Trends 

Omnichannel banking trends are driving innovation and transformation to enable banks to better meet the evolving needs and expectations of their customers in an increasingly digital and interconnected world. Let’s find some latest trends below. 

Current Omnichannel Banking Trends

• Digital-First Strategies: Many banks are prioritizing digital channels, offering a smooth online experience and mobile banking applications to cater to the growing demand for convenient and accessible services.
• AI and Chatbot Integration: The integration of artificial intelligence (AI) and chatbots is becoming more prevalent, enhancing customer service by providing instant support, personalized recommendations, and efficient query resolution.
• Biometric Authentication: To bolster security and improve the user experience, biometric authentication methods, such as fingerprint recognition and facial scanning, are being increasingly implemented across various channels.
• Personalized Financial Insights: Banks leverage data analytics to provide customers with personalized financial insights, offering tailored advice, spending patterns analysis, and proactive financial management tools.

Future of Omnichannel Banking Trends

• Voice-Activated Banking: The rise of voice-activated devices is expected to lead to increased integration of voice commands for banking transactions, enabling customers to perform tasks using voice recognition technology.
• Augmented Reality (AR) Experiences: The adoption of augmented reality is anticipated to provide immersive and interactive banking experiences, such as virtual branch visits and enhanced product demonstrations.
• Blockchain for Security and Efficiency: Blockchain technology is expected to be further explored for its potential to enhance security, reduce fraud, and improve the efficiency of transactions across omnichannel platforms.
• Hyper-Personalization: The future of omnichannel banking involves hyper-personalization, where AI-driven algorithms provide highly individualized services, offers, and recommendations based on a customer’s behavior, preferences, and financial goals.

Conclusion

The choice of an omnichannel solution isn’t just a decision; it’s a commitment to revolutionize the way you engage with customers and navigate the technological frontier. 

As you select the omnichannel banking solution that aligns with your vision, you’re not just adopting technology; you’re embracing a future where banking is not just a transaction. But, it’s a journey that’s automated, engaging, and thoroughly strategic. 

You can start your journey and stay ahead of the competition with REVE Banking Chabot.

Frequently Asked Questions

1. Who Benefits from Omnichannel?

Businesses that aim to deliver a cohesive and integrated customer experience across various platforms, such as banks, retailers, and service providers.

2. What is an Omnichannel Example?

A bank allows customers to start a loan application online, continue it through a mobile app, and complete it at a branch without re-entering their details.

3. What Are Omnichannel Activities?

These activities include aligning marketing efforts across platforms, integrating customer service systems, and synchronizing inventory as well as sales data.

4. What is the Core Principle of Omnichannel?

The core principle of omnichannel is to ensure a unified and consistent customer journey across all touchpoints for automated transitions between channels.

5. What is the Purpose of Omnichannel?

Omnichannel aims to boost customer satisfaction, increase customer engagement, and boost operational efficiency by merging different communication and service channels.

Bangladesh aims for 75% of local transactions to go digital by 2027, as a vision of a “Smart Bangladesh” by 2041. Notably, Nagad Digital Bank and Kori Digital have recently joined as newly licensed digital banks to start a new beginning.

In this exploration of Bangladesh’s digital banking landscape, we uncover the fusion of convenience and innovation, where the future of finance rests within arm’s reach. So, get ready to be amazed as we’re taking you to this fintech revolution propelling Bangladesh forward!

What is Digital Banking? 

Digital banking refers to the use of digital technology and online channels to provide a wide range of financial services to customers. Unlike traditional banking, digital banking operates in a branchless and virtual environment. The primary objective of digital banking is to enhance accessibility, convenience, and efficiency for users. It eliminates the need for physical branches and allows transactions and interactions through electronic means.

Additionally, digital banking has further evolved with the emergence of Neo-Banking. Neo-banks, or digital-only banks, operate exclusively online without physical branches. They leverage technology to provide innovative and user-centric financial solutions. The integration of Neo-Banking concepts aligns with the broader trend of using technology to transcend geographical limitations and time constraints to the evolving needs of a digitally connected society.

In digital banking, customers can access their accounts, conduct transactions, and manage their finances through secure online interfaces. Furthermore, it facilitates electronic payments and transfers that reduce reliance on physical currency. It often incorporates advanced security measures such as encryption, multi-factor authentication, and continuous monitoring to ensure the safety of customer information and prevent unauthorized access.

Digital Transformation Over Time in Banking

Digital transformation in banking has been an ongoing journey that has evolved significantly over time. The financial industry has seen a remarkable shift from traditional banking methods to fully embracing digital technologies. 

Here’s a timeline that highlights key developments in the digital transformation of banking:

1960s – 1980s: Early Automation

• Banks began to automate their processes with the introduction of electronic data processing systems.
• ATMs (Automated Teller Machines) were introduced, allowing customers to perform basic transactions outside of bank branches.

1990s: Online Banking

• Banks launched online banking services, providing customers with the ability to check balances, transfer funds, and pay bills over the Internet.
• The adoption of secure socket layer (SSL) encryption made online banking safer.

2000s: Mobile Banking and SMS Alerts

• The proliferation of mobile phones led to the introduction of mobile banking services.
• SMS alerts were used to notify customers about account activity and transactions.
• Online payment gateways like PayPal gained popularity.

2010s: Fintech Disruption

• The rise of fintech startups challenged traditional banks to offer innovative solutions for payments, lending, and personal finance management.
• Mobile banking apps evolved, providing features like mobile check deposits, P2P payments, and budget tracking.
• Regulatory changes, like PSD2 in Europe, encouraged open banking and data sharing between banks and third-party providers.

The mid-2010s: Blockchain and Cryptocurrency

• The emergence of blockchain technology and cryptocurrencies like Bitcoin created new avenues for financial transactions, particularly in the areas of cross-border payments and remittances.
• Central banks explored the potential for central bank digital currencies (CBDCs) as digital counterparts to physical currency.

Late 2010s – Early 2020s: AI and Automation

• Artificial intelligence (AI) and machine learning were integrated into banking systems for customer service, fraud detection, and risk assessment.
• Robo-advisors gained traction, offering automated investment advice.
• Chatbots and virtual assistants have become common in customer support.

Present and Beyond Omnichannel Banking and Personalization

• Banks are moving towards providing a seamless omnichannel experience, where customers can transition between online, mobile, and physical channels seamlessly.
• Many tech-driven banks are using Chatbots to provide a consistent experience across different channels to ensure that customers receive uniform information and assistance whether they are interacting through a website, mobile app, or other channels.
• Personalization is a key focus, with banks using data analytics to offer tailored financial products and services.
• Enhanced cybersecurity measures, including biometrics and multi-factor authentication, are being adopted to protect digital assets.
• Quantum computing and 5G technology may further revolutionize the banking industry by enabling faster data processing and more secure transactions.
• Decentralized finance (DeFi) and blockchain-based financial services could become more mainstream, potentially reshaping the industry’s infrastructure.

The digital transformation in banking continues to evolve, driven by rapid advancements in technology and changing customer expectations. As banks adapt to these changes, they are likely to remain at the forefront of innovation to offer increasingly convenient and secure financial services.

Types of Digital Banking Channels

1.  Mobile Banking

It allows customers to access their bank accounts and conduct financial transactions using a mobile device, typically through a dedicated banking app or mobile web browser. It offers features like checking balances, transferring funds, bill payments, and mobile deposits.

2. Internet Banking

It also known as online banking enables customers to access their bank accounts and perform transactions through a web portal using a desktop or laptop computer. It provides services such as account management, bill payments, and fund transfers.

3. Chatbot Banking

Chatbot banking brings convenience and accessibility to the financial landscape. This innovative technology employs artificial intelligence to enable meaningful interactions between customers and their banks through natural language conversations. It simplifies financial tasks, offering 24/7 assistance for inquiries, transactions, and personalized financial advice, all via a chat interface. Chatbot is revolutionizing traditional banking by providing instant, personalized support and fostering a more intuitive and user-friendly banking environment.

4. Online Payment Gateways

These gateways are digital platforms that facilitate secure online transactions. They are commonly used for e-commerce and allow customers to make purchases or payments electronically. 

5. Digital Wallets

It is also known as e-wallets are mobile apps or online platforms that allow users to store and manage their payment information, such as credit card details and bank account information. They enable quick and secure payments for a wide range of transactions, both online and in physical stores.

6. Online Bill Payments

Online fund transfer services allow users to send money to individuals or businesses electronically. These services include peer-to-peer (P2P) payment platforms, wire transfers, and interbank transfers. They offer a convenient and efficient way to move money between accounts.

7. Online Investment Services

It also known as robo-advisors or online brokerage platforms, provides individuals with the ability to invest in stocks, bonds, mutual funds, and other financial instruments online. They often use algorithms to offer investment advice and portfolio management services.

8. QR Code Payments

It involves scanning a Quick Response (QR) code with a mobile device to initiate a payment. This technology is commonly used for in-store and person-to-person (P2P) transactions, making payments swift and contactless.

Digital Banking Vs Online Banking: Key Differences

Both are closely related terms but have distinct differences in terms of scope and functionality:

1. Scope of Services

• Online Banking: It typically refers to digital access to your customer’s existing bank account through a web portal or a mobile app. It allows your customers to perform basic banking operations like checking account balances, transferring funds, and paying bills online.
• Digital Banking: It encompasses a broader range of financial services. It often includes not just basic banking functions but also more advanced services like investment management, budgeting tools, and even the ability to open new accounts online. It’s a comprehensive, all-in-one financial platform.

2. Access Points

• Online Banking: It is primarily accessed through a bank’s website via a web browser or a dedicated online banking app. It’s essentially an electronic version of traditional banking services.
• Digital Banking: It can include online banking but extends beyond it. It can encompass multiple channels, such as mobile apps, dedicated banking apps, fintech apps, or even integrated financial management platforms.

3. Interconnected Services

• Online Banking: It focuses on the core banking services offered by a specific bank or financial institution. It doesn’t necessarily integrate seamlessly with other non-banking financial services.
• Digital Banking: It integrates with a broader ecosystem of financial tools and services. It may provide access to third-party financial apps, investment platforms, and personal finance management tools to create a more holistic financial experience.

4. Customer-Centric Approach

• Online Banking: It is essentially a web-based version of traditional banking to offer convenience and 24/7 access to basic banking services. However, it may not always prioritize customer-centric innovations.
• Digital Banking: It is designed with a strong customer-centric approach. It often incorporates user-friendly interfaces, personal financial insights, and customized financial solutions to emphasize a more personalized and modern user experience.

5. Innovation and Integration

• Online Banking: It may not always keep up with the latest fintech innovations and trends, and its services can be limited to what the specific bank offers.
• Digital Banking: It is more likely to adopt the latest technological innovations, including artificial intelligence, blockchain, and open banking principles. It’s often more adaptable to evolving customer needs and preferences.

While online banking is a subset of digital banking, the latter offers a more comprehensive and technologically advanced suite of financial services. Digital banking leverages technology to create a more holistic, customer-focused, and integrated financial experience, often involving a broader ecosystem of financial tools and services.

Digital Banking Challenges and Effective Ways to Overcome

Balancing convenience with concerns about security and technological accessibility can be a big challenge for the customer. On the flip side, navigating cybersecurity risks, regulatory compliance, and integrating digital innovations within existing systems pose hurdles for banks embracing digital transformations. Let’s take a deep look at the key challenges customers and banks may encounter.

Bank Challenges & Solutions:

1. Cybersecurity Risks: Banks encounter escalating threats of cyberattacks and data breaches. Banks must ensure robust security measures and ongoing investments in cybersecurity infrastructure.

Solution:

• Investment in Cybersecurity: Continual investment in advanced cybersecurity measures, including encryption technologies, threat detection systems, and regular security audits to safeguard against cyber threats.

2. Regulatory Compliance: Adhering to ever-evolving regulations and compliance standards in various jurisdictions poses a challenge. It requires continual adaptation and resources.

Solution:

• Adaptive Compliance Frameworks: Develop flexible and adaptive compliance strategies to navigate changing regulatory landscapes and ensure adherence to evolving standards.

3. Legacy System Integration: Introducing digital innovations into existing legacy systems can be complex and costly. It hinders the seamless integration of new technologies.

Solution:

• Modernizing Infrastructure: Gradually modernizing legacy systems to enable integration of digital innovations. It ensures they complement and enhance existing banking operations rather than disrupt them.

4. Customer Support: Offering effective customer support can be a big challenge in digital banking. It involves addressing the demands for automated query resolution, timely responsiveness, and maintaining a human touch in a virtual environment.

Solution:

• Chatbot: Using AI-powered Chatbots for quick query resolution, implementing a well-structured knowledge base, and combining automation with personalized human assistance can enhance the efficiency and effectiveness of customer support in digital banking.

Current Trends in Digital Banking 

Several trends are shaping the landscape of digital banking. It’s important to note that the digital banking industry is dynamic, and new trends may have emerged since then. 

Here are some of the current trends in digital banking up to that point:

1. Open Banking and API Integration

Open banking initiatives, such as PSD2 in Europe, have promoted data sharing between banks and third-party providers through APIs. This enables customers to access a broader range of financial services and manage multiple accounts from a single platform.

2. Artificial Intelligence (AI) and Machine Learning

Banks are using AI and machine learning for enhanced customer service, personalized product recommendations, fraud detection, and credit risk assessment. Chatbots and virtual assistants have become common in customer support.

3. Biometric Authentication

Enhanced security measures, such as biometric authentication (fingerprint, facial recognition, and voice recognition), are increasingly used for secure access to mobile banking apps and online accounts.

4. Contactless Payments

The adoption of contactless payment methods, including mobile wallets (Apple Pay, Google Pay) and contactless cards, has grown significantly, especially in response to the COVID-19 pandemic.

5. Cryptocurrency Integration

Some banks are exploring or integrating cryptocurrencies and blockchain technology, offering services like cryptocurrency custody and trading to meet the evolving demands of customers.

6. Robo-advisors and Wealth Management

It continues to gain traction, providing automated and algorithm-based investment advice to customers. These platforms make investing more accessible and affordable.

7. Digital Identity Verification

Digital banks and financial institutions are investing in advanced digital identity verification methods to streamline the onboarding process and comply with regulatory requirements, such as Know Your Customer (KYC) checks.

8. Enhanced Cybersecurity

With the increased digital footprint, cybersecurity remains a top priority. Banks are adopting advanced security measures, such as multi-factor authentication and AI-driven threat detection, to protect customer data and assets.

9. Real-Time Payments

Real-time payment systems are being adopted in many countries, allowing instant fund transfers and reducing the time and cost associated with transactions.

10. Regulatory Compliance

Compliance with evolving financial regulations, including data privacy laws like GDPR and consumer protection regulations, is a significant focus for digital banks.

Key Benefits and Impacts of Digital Banking

Digital banking benefits customers by offering convenience, cost savings, and personalization, while it benefits banks through cost reduction, increased customer reach, and data-driven insights, leading to improved customer engagement and competitiveness in the financial industry.

Customer Benefits:

• Convenience: Customers enjoy unparalleled convenience with 24/7 access to banking services from anywhere. It eliminates the need to visit physical branches. Transactions, account inquiries, and even financial advice are just a tap away on their smartphones or devices.
• Efficiency: Digital banks offer swift and seamless transactions. Tasks like fund transfers, bill payments, and account management take mere minutes. It reduces wait times and bureaucracy associated with traditional banking.
• Personalization: These banks often leverage data-driven insights to tailor services to individual customer needs. With personalized recommendations to targeted financial advice, customers experience a more customized and relevant banking experience.
• Lower Costs: Digital banks typically have fewer overhead expenses related to maintaining physical branches. As a result, they often offer lower fees, higher interest rates on savings, and better exchange rates, providing cost savings and better value to customers.
• Enhanced Security: Advanced security measures, such as biometric authentication and encryption technologies, ensure robust protection of customer data and transactions to foster trust and confidence among users.

Bank Benefits 

• Scalability: Digital banks have the advantage of rapid scalability, as their operations are not tied to physical infrastructure. They can expand their services and customer base swiftly and cost-effectively to tap into a broader market without the constraints of brick-and-mortar limitations.
• Data Analytics: Access to vast amounts of data generated by customer interactions. They can leverage this data through analytics to gain insights into customer behavior, preferences, and trends. This information helps in refining services to create targeted marketing campaigns, and making data-driven business decisions.
• Agility and Innovation: Digital banks operate in an environment that fosters innovation and agility. They can quickly adapt to market changes, integrate new technologies, and roll out innovative services to stay ahead of the curve in meeting evolving customer demands.
• Reduced Operational Costs: Without the overheads of maintaining physical branches, digital banks can significantly reduce operational costs. This includes expenses related to property, staffing, and infrastructure maintenance. It allows them to allocate resources more efficiently.
• Accessibility and Inclusivity: It can reach underserved populations to provide banking services to those who have limited access to traditional banks. This inclusivity not only serves a societal purpose but also opens up new markets and revenue streams for the bank.

How is Bangladesh Adapting Digital Banking? 

Bangladesh is undoubtedly making significant strides towards embracing digital banking. A total of 52 domestic and foreign entities have applied to the central bank for the license to set up digital banks. The Business Standard reports that the Bangladesh Bank made a decision to approve digital banking licenses to two of the 52 applicants, as confirmed by a senior official from the central bank.

The two newly licensed digital banks are Nagad Digital Bank and Kori Digital. The Bangladesh Bank has granted permission to three other applicants to establish digital banking services with the support of various traditional banks.

Furthermore, there are three more applicants, who have the backing of fintech firms and other companies, who may also be granted licenses after a thorough six-month evaluation period to assess the performance of the initial two digital banks.

However, the question of whether it is fully ready for this transformation involves several key considerations:

• Infrastructure: The readiness for digital banking in Bangladesh hinges on its technological infrastructure. While the country has seen an increase in mobile penetration and internet access, there is still room for improvement, especially in rural areas. A robust and widespread digital infrastructure is essential for the success of digital banking.
• Regulatory Framework: The regulatory framework plays a pivotal role in shaping the digital banking landscape. Bangladesh has recognized the importance of digital banking, and its regulators have taken initial steps to facilitate the integration of fintech and traditional banking. However, continued development and adaptation of regulations are necessary to ensure security, consumer protection, and innovation in the sector.
• Collaboration: Collaboration between traditional banks and fintech firms is often the key to successful digital banking. Bangladesh is seeing some collaboration efforts, but fostering a culture of cooperation and synergy between these entities will be essential for the digital banking ecosystem’s growth.
• Security Measures: The proliferation of digital banking also brings security risks. Ensuring robust security measures and cybersecurity protocols is paramount to gain consumer trust and prevent cyber threats. Bangladesh needs to invest in advanced security infrastructure to safeguard its digital banking system.
• Consumer Awareness: An essential aspect of readiness for digital banking is the level of awareness and trust among consumers. People need to be educated about the benefits, risks, and how to use digital banking services effectively. Building this awareness is an ongoing process.
• Fintech Ecosystem: The development and growth of the fintech ecosystem play a significant role in the readiness for digital banking. The country has shown promise with its mobile financial services (MFS) providers like Rocket and bKash. The expansion of such services and the entry of new fintech players will further contribute to the readiness of digital banking.
• Education and Training: To fully adapt digital banking, Bangladesh must invest in education and training programs for its workforce to ensure that they have the necessary skills to operate and manage digital banking systems effectively.
• Regulatory Support: Regulatory bodies should continue to support and encourage innovation in the financial sector. They need to be agile and responsive to changes in the digital landscape.

List of Banks That Are Moving to Digital Banking 

There are 52 banks, that applied for digital banking licenses to the Bangladesh Bank. This list highlights 44 forward-thinking banks that have been at the forefront of this shift, actively embracing digital banking to offer their customers more convenient, efficient, and secure financial services. 

As these institutions continue to evolve and adapt to the digital age, they are setting new standards and shaping the future of banking for the better.

1. Alliance Fingular Islami Digi Bank PLC
2. Nagad Digital Bank PLC
3. bKash Digital Bank PLC
4. Digi Ten PLC
5. Digital Bank PLC
6. Upay Digital Bank PLC
7. JRF Digital Bank (BD) PLC
8. Japan Bangla Digital Bank PLC
9. Elegant Digital Bank PLC
10. Digi Bank PLC
11. North East Digital Bank PLC
12. Next Century Digital Bank PLC
13. Adhunik Bank PLC
14. Somriddhi Digital Bank PLC
15. Desh Digital Bank PLC
16. Shonchoy Digital Bank PLC
17. Smart Digital Bank PLC
18. Shompod Digital Bank PLC
19. North West Digital Bank PLC
20. Bijoy Digital Bank PLC
21. NUH Digital Bank PLC
22. Uddipan Digital Bank Ltd
23. UNO Digital Bank PLC
24. Shomoy Digi Bank PLC
25. Amar Digi Bank PLC
26. Zamzam-Islami Digital Bank PLC
27. Islami Digital Bank PLC 
28. Shuborno Digital Bank PLC
29. Ekota Digital Bank PLC
30. Sunam Digital Bank Ltd
31. Bangladesh Digi Bank PLC
32. Aalo Digi Bank PLC
33. Aasha DigiBank PLC
34. Delta DiGi Bank Ltd
35. Starline Digital Bank PLC
36. Shadin Digital Bank 
37. Sonali Bank
38. Agrani Bank
39. Janata Bank
40. Rupali Bank
41. Pathao Digital Bank PLC
42. Agami Digital Bank PLC
43. Artist Digi Bank PLC
44. Shetu Digi Bank PLC 

Conclusion

Digital banking isn’t just a trend; it’s a transformation that’s changing the way we interact with our money. From the palm of your hand, we can now manage your finances, invest, and make payments with unprecedented ease and security. 

Digital banking has put the power back in your hands to eliminate the need to stand in line or shuffle through piles of paperwork. It’s a revolution that’s inclusive, convenient, and future-proof, bringing financial freedom to your fingertips. So, as we ride the wave of this digital transformation, remember, that the future of banking is now, and it’s as close as your smartphone. 

There is a new baseline for the customer experience in banking. 

People expect more channels, and faster and personalized responses without long wait times. Banking customers want their financial institutions to provide more than just basic service – they want insights, guidance, and relevant recommendations. 

Hence, improving customer service in banking is crucial. 

A study by Accenture shows that 48% of bank customers demand preferential treatment and rewards in exchange for their loyalty to your bank.

In the banking industry, where technology continues to evolve the way we handle personal and business finances, quality customer care includes keeping pace with both live and digital options for handling simple to complex transactions.

What is Good Customer Service in Banking?

Customer service in the banking sector depends on efficient and prompt responses. Customer service is the most important duty of the banking operations. Prompt and efficient service will develop good public relations, reduce complaints and increase business.

Providing quality customer service is important in the banking industry because it makes customers feel valued, helps you meet their needs more effectively and improves your overall customer retention in banking as well.

Key Importance of Customer Service in Banking

Financial institutions have amongst the highest customer acquisition costs in the industry today. Acquiring new customers can cost five times more than retaining existing ones. Hence, it is essential to adopt the right strategies to improve customer service in banking.

Customer service means different things in different industries, but it always boils down to the same basic element – providing superior levels of service to your customers. 

• Changing customer expectations – Customers today are more demanding and more sophisticated than he or she was thirty years ago.
• Increased importance of customer service – With changing customer expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services.
• Need for a relationship strategy – To ensure that a customer service strategy that will create a value proposition for customers should be formulated, implemented and controlled. It is necessary to give it a central role and not one that is subsumed in the various elements of the marketing mix.

10 Practical Strategies to Improve Customer Service in Banking

Today’s customer expects personal, relevant, accessible-anywhere experiences when they interact with businesses — and modern finance is no exception. With new post-pandemic norms setting in, digital-first service keeps customers connected to your offerings anywhere they need them.

1. Monitor end-to-end customer journeys to create 360° view 
2. Provide Real Time Support
3. Deliver Personalized Experience
4. Leverage a Banking Chatbot
5. Develop an Omnichannel Experience
6. Conduct Training on Intrapersonal Skills
7. Create Knowledge Base for Self Help
8. Solicit Customer Feedback
9. Revitalize Digital Experience
10. Make Use of Contextual Data 

Let us dive in to understand how each strategy can deliver exceptional customer experience in banking.

1. Monitor end-to-end customer journeys to create 360° view 

Mapping out your customer journeys is crucial to deliver the exact service that customers are expecting. 

First things first! You have to identify all touchpoints across all channels where you engage with customers. A common banking customer journey may include:

• A business professional checking account balance online
• Depositing a paycheck in-branch
• Verifying the deposited funds on a smartphone. 

You should have feedback experiences in place at all three touchpoints. Then by identifying target customers, create customer personas and focus towards your customer experience program.

Secondly, outline the journey for how customers engage with your institution. Start your journey map with the first point of contact and each next step and all potential steps until the journey is complete.

Finally, identify at-risk customers and proactively engage on a personal level to improve the relationship.

Note: If financial institutions can learn to identify at-risk customers, proactively engage on a personal level, and identify what is causing the customer’s behavior, companies have a much higher chance of keeping a customer loyal, maybe even for life.

The goal is to use experience management to move from reactive to predictive, and eventually, to a state of delivering exceptional experiences across all touchpoints.

2. Provide Real Time Support

People want to organize their finances on the go and find answers quickly online and the best option is live chat. 

Citibank reported that 90% of live chat users complete their home-equity application.

Live chat is a powerful tool to counter the bureaucratic and impersonal feel of banking institutions. It provides your customers with personal human support that’s easy to reach.

American Airlines Federal Credit Union recognized the advantages of live chat and empowered their service reps to engage customers in real time. The biggest German institutions like Hypovereinsbank and Targobank also use live chat as their main customer service tool.

How can live chat improve customer service in the banking industry?

• Increase sales conversions – Live chat can address customer queries instantly and help in faster decision making leading to more sales. It can also approach customers proactively – if they are stuck at some page/point you can trigger for a chat window to automatically open with an invite to chat.
• Sending files securely – Implementing a GDPR adhered complaint based live chat solution makes live chat suitable for directly sending files to your customers.
• Address customer concerns instantly – Live chat provides instant solutions for banking and financial queries with the help of digital engagement tools like video chat, co-browsing in order to deliver better customer service.
• Reduce customer support costs – With canned responses, you can handle multiple chats and offer faster responses. Live chat increases the efficiency of service reps by automated routing and delivers better banking support.

3. Deliver Personalized Experience

Personalized experience in any industry always pays off well. In the banking sector video chat is a wonderful tool that can have a positive impact on various aspects.

Video chat in customer service for banks has witnessed a whopping 70% growth. Its value even grows further when used in combination with other tools for customer engagement.

When the situations are complex where visual cues hold huge importance, a video chat platform emerges as the only option to ensure the best personal support.  

Benefits of video chat for customer service in banking

• Live customer engagement – Video chat helps businesses interact directly with customers on the website or mobile apps and improve the level of engagement manifold.
• Deliver personalized experience – When you combine a video chat platform with other customer engagement tools like live chat and chatbots, it’s always easy to provide personalized experiences at any time through the different stages of the journey. 
• Faster resolution of issues – By using co-browsing and video chat together, it becomes easy to collaborate with customers in real-time and fix issues faster. 
• Offer proactive support – The use of cross-platform video chat proves very handy in offering proactive support and effective engagement once you have gained insights about your customer journey. 

4. Leverage a Banking Chatbot

AI in banking customer service is gradually gaining wide acceptance. They are not only simplifying the processes for businesses but also enabling quick access to services that were formerly confined to apps.

Banks need to improve the quality of their customer service without sacrificing time to redundant user queries. 

Subsequently, banks now understand the importance of automation and 24×7 services that are not only convenient to them but to their customers. It means seamlessly providing scalable 24×7 customer support on multiple channels and languages.

AI Chatbots in banking customer service can help streamline transactions like money transfers and account balance checks via a conversational interface so that customers are constantly guided through their actions

How deploying an AI chatbot helps to deliver better customer service?

• Engage consumers 24×7 – A banking chatbot can be deployed on the website or on browsing pages to start conversations. It helps them analyze user behavior or interests, or introduce to them banking products.
• Deliver great conversational experience – AI bots respond accurately to the inputs of customers  and provide conversational experiences at each step of the journey. They route complex chats to the right human rep to ensure a humanized support.
• Offer personalized services – With the help of chatbot analytics (that captures user  behavior, trends and patterns) you can deliver relevant and personalized services and offers to customers.
• Automated support for FAQs – Bots are available 24×7 and banks can deploy them to solve customer problems any time without requiring human intervention. AI bots with advanced algorithms and machine learning ability can answer complex queries.

5. Develop an Omnichannel Experience

Nowadays, basic transactions in banks are speedily migrating from the physical to the digital channels. According to Reuters, 60% of customers would still prefer to open a new checking account at a bank branch rather than through digital channels

A majority of banks have adopted the omnichannel approach at the core of their strategies. 

It’s because banks have understood that ease, innovation, simplicity, and accessibility of platforms provided by FinTech companies can influence the customer behaviors quite strongly.

An omnichannel customer service strategy allows you to use all available marketing channels to achieve an integrated and seamless customer experience. 

The customer, on the other hand, is able to move from your app to the website to push notifications to social media, experiencing the same branding and messaging throughout in a synchronized way. 

How can an omnichannel approach benefit customer service in banking?

• Faster resolution rate – Omnichannel banks are capable of handling customer requests faster by using digital tools and strategies which increases the resolution rate as well as customer satisfaction.
• Improved customer experience – When banks engage across all online and offline customer service channels and deliver consistent support, there is a boost in customer experience.
• Streamline customer journey for better insights – Banks can easily understand the customer lifecycle better with conversation history and deliver personalized real time support.
• Reduce customer churn –  Customers expect instant response and when they are entertained across their preferred channels in real time, there is a significant reduction in the customer churn rate.

Note: However, banks should amalgamate traditional and digital components in order to create an omnichannel customer experience.

6. Conduct Training on Intrapersonal Skills

Financial matters are very critical to handle, so having frontline employees with exceptional interpersonal skills is an asset for any financial institution.

For example – There might be circumstances where you may find yourself in situations where you need to explain to a customer why their loan application has been denied or why a mortgage cannot be processed.

While it is important to be clear and transparent in explaining the options, one must display empathy and maintain the utmost composure. It will certainly go a long way in helping customers feel reassured.

So banks and financial service providers must invest in customer service training for employees to have them ready to navigate all possible scenarios. 

At times it may appear like these are additional costs that impact the bank’s bottom line, but at the same time will be made good by clients who stick with you because of good customer service.

7. Create Knowledge Base for Self Help

As banks face new and evolving challenges, including digitization, virtualization of the workplace, government regulations, and growing security concerns, they can gain a competitive advantage with knowledge management.

74% of customers report that they use a self-service support portal to resolve issues on their own before contacting a live service representative.

Creating knowledge base in the banking sector allows financial services organizations to more efficiently store and organize knowledge, which enables bank managers and employees to collaborate and stay aligned on short- and long-term initiatives. 

How to improve customer service in the banking industry with knowledge base?

• Ensure bank customers receive consistent information at any branch –  A centralized knowledge management system ensures that all employees have access to the same information, so they can then provide standardized answers to customers.
• Create a consistent brand experience, both digitally and in person – With a comprehensive knowledge base, you can ensure that you present a unified experience, no matter how a customer interacts.
• Provide all bank employees with up-to-date regulatory updates – A knowledge base system ensures that all employees receive updates about regulatory changes and understand how they impact the bank and its customers.  
• Offer a holistic view of market research and customer insights – By using a knowledge management platform to centralize all research and give all internal stakeholders access to the insights they need to make informed decisions.
• Enhance overall customer satisfaction and the CX –  When banks are equipped with a knowledge management system, employees can quickly search for the information they need to provide comprehensive solutions to client issues.

8. Solicit Customer Feedback

Customers are the ones who can anticipate their needs better than anybody else. 

After all, your customer data from your CRM and helpdesk tool can only tell you a part of the story. The other part lies with the customer. And no form of technology can magically help you read it.

It only makes sense to dive into this rich pool of information from your customer base by acquiring their feedback after every customer interaction. 

By doing this, you can gain insight into whether their needs are being sufficiently met, what financial products or services they’re interested in, their financial goals for the future, how their customer experience can be improved, and more.

There are a number of ways to gain customer feedback, but the most practical approach is to establish check-ins across all touchpoints. 

For example, if a customer were to contact your bank’s call center with a service request, the representative responsible for processing that request might close out the call by asking whether the customer had any additional questions and whether they were satisfied with the service they received. 

9. Revitalize Digital Experience

Every customer engagement platform needs a digital-friendly service experience that gets customers what they need regardless of the device they use.

For example, customers can be easily frustrated if they try to open a new credit card from a mobile device, only to be redirected to a full-size desktop webpage. In the worst cases, customers are forced to physically sign documents or come into a branch to even begin the process. 

Mobile-first banks are prepared against shifts in device preference with the flexibility to meet their customers wherever they are. Mobile users have already exceeded those of traditional online banking.

A dynamic interface design and full-featured portals on any platform feel more approachable, ultimately keeping customers loyal.

Providing an end-to-end digital facelift can also involve no manual processes. Managing documents via electronic signatures and other tools can streamline your backend to improve customer service. 

Even when leaving room for customers who prefer paper, digitizing behind the scenes will help you keep all their information at your team’s fingertips. 

10. Make Use of Contextual Data 

Leveraging contextual data is an excellent way for banks and financial institutions to survive and thrive in the long run. 

In a nutshell, contextual data refers to any form of information that provides valuable context about a person/organization and an event.

In banks and financial institutions, contextual data can be used to identify behavioral patterns and gauge customer loyalty, which they can then use to improve customer relationships. 

The data collected can also be used to create bespoke financial solutions specifically tailored to meet the needs of every customer. For banks and financial institutions, their most valuable sources of contextual customer data are their help desks and CRM (customer relationship management) tool.

While banks can use CRMs to track contact details, location, social media activity, and purchasing preferences of the customer, helpdesks or customer service software can be used to track their post-purchase interactions and their support requests.

Many help desk tools come with built-in analytics suites that can help you keep track of all your customer service KPIs without having to invest in another tool to track them. Every information can then be used to piece together a 360-degree view of the customer.

Furthermore, these customer profiles can help you tailor your financial products, upsell, cross-sell, create targeted marketing campaigns, and even design loyalty programs/provide preferential customer service.

3 Examples of Excellent Customer Service in Banking

Technology is rapidly changing the way we work, communicate, and bank. Those who are steering the ship understand the importance of not only better meeting consumers where they are today, but also planning ahead to proactively address new needs in the future. 

The below mentioned financial service leaders are freeing up members of the team to deliver higher levels of service and tailor offers to make banking more personal. 

1. Navy Federal Credit Union – Delivering effective omnichannel experiences

Virginia-based Navy Federal Credit Union exclusively serves the military, veterans, and their families — a segment to which it promises “once a member, always a member.” 

Great customer service is important in delivering on this promise, the Navy Federal Union realized that. 

“As a lender, it’s really important for us to be consistent in the member service experience” explained Prabha KC, a mortgage loan officer at the company. “If the members are overseas they can still access their loan information.” 

Offering self-service channels was one way the company sought to improve its service delivery, not only facilitating 24/7 support but also freeing up its member service representatives to do more added value work on behalf of their members. 

As a result of the implementation, the number of self-service applications doubled and the time taken to submit an application decreased by 40%.

2. BOK Financial – Making banking more personal

Investing in personalization empowers banks to deliver the white glove service that customers are looking for. In fact, the majority 72% of customers say that personalization is highly important in financial services today. 

Oklahoma-based BOK Financial adopted strategies to help it meet consumer demand for an intuitive and personalized banking experience.

By running consumer loans and mortgage applications, the company is delivering a tailored experience and, as a result, has seen completion rates more than triple. Moreover, the majority of volume now comes through digital channels — in stark contrast to the previous 15%. 

3. Amarillo National Bank – Adapting and responding to new needs

When banking teams prioritize their customers’ needs and preferences, they can deliver better service, and they can achieve more impactful customer relationships as a result.

During the global pandemic, many lenders, including Texas-based Amarillo National Bank (ANB), searched for ways to continue closing loans remotely. The value of hybrid and electronic closing methods quickly became clear. 

“We knew we had to move forward with the hybrid closings so that our customers didn’t have to go into the title companies to close their loans,” Debbie Bigelow, senior vice president, recalled. They will continue to adopt innovations that allow them to succeed in a rapidly changing operating environment.

Wrapping Up: Customer Service is Banking is Paramount

The financial services landscape is in constant flux, with new trends and regulatory measures emerging almost every day. To ensure that your financial institution delivers the best customer experience possible, you need to keep your finger on the pulse of the industry and keep exploring strategies to improve customer service in banking.

It is recommended that banks must open for change and constantly look for ways to improve and embrace new technology. By listening to your customers and making smart investments in digital customer engagement tools, you can guarantee exceptional customer service at your bank or financial institute.

In the competitive industry, where everyone is fighting to grab the market share, what an eCommerce business should do to survive? The answer will be: choose the right eCommerce strategy and market. In this ever increasing competitive world, for keeping stability in business, you have to aim for the right opportunityf.

Making a complete digital marketing strategy is the core of all business. Almost 90% of the total internet users use search engines to find out information and these have the huge capacity to drive traffic to your website. Still very few entrepreneurs know the basic rules to tap into this resource.

Proper SEO, engagement in social media channels, webpages with rich content, PR, Pay Per Click advertising are some of the major factors to be considered to get a good traffic on your website.

According to Mary Meeker’s 2014 Internet Trends report, because of the growth of smart phone usage over the past few years, now, 30% of the total mobile users are smartphone users. All of us know that, as a part of the larger retail and commerce industry, eCommerce is growing fast but do you that m-commerce is growing at an even faster rate?

If you fail to provide mobile friendly shopping experience to your customers, then you are missing something for sure. It will be a disadvantage for your business as well.

Source:  Google Mobile Ads Blog

The majority of the eCommerce business is also sufferingmainly because of the inability to offer real customer service in the online stores. Most of the online stores leave visitors alone to figure out products or services by themselves, which experiences like walking to an empty store without any sales person.

One solution for this could be adding live chat for eCommerce website. It specializes in offering real-time assistance to the website visitors and thus drawing most of the revenues by selling products to them.

How to Differentiate Your eCommerce Store from Your Competition

If you own an online store and want to be differentiated amongst your competitors, here are the 10 eCommerce business ideas which you should keep in mind:

1. Deal with shopping cart abandonment

As an eCommerce business, you need to understand how online shopping cart abandonment signifies the loss of a customer who was going through the check-out process to buy products in an online store. There are several reasons due to which many people leave the shopping cart, some of them are:

• In case you are offering the same product which your competitors also offer, people will choose based on the price
• High shipping and delivery charges
• Hassle: If you ask for too much info/ forced registration
• Doubts like, “Will it fit me? “or “Can I return the product and get refund” etc
• Your website is too slow

So what will be the solution? Use live chat’s ‘Proactive Chat’ feature to engage with them proactively. It enables you to offer assistance at the right time and stop themfrom abandoning your website.

2. Offer instant assistance

People come to your website and may get confused with your products and offerings. Worried?

Add live chat solution to your website and start chatting with them to solve their queries. Live chat offers ‘Analytics’ feature which helps you to know your website visitor’s geographic location, IP address, country, past visits, etc. So now you can start personalizing chat sessions with them in their own way.

3. Be prompt

Implementing live chat assistance in your website’s checkout page will certainly bring great improvements in the sales conversion rates. At the buying stage, you want all your eggs to remain in your basket. If an egg jumps out with doubts like related to your delivery or refund policies, it can be caught and consolidated with the help of live chat.

Traditional support solutions like email or phone are not applicable in this context because of the high response time and they also include a media-switch which may lead to cart abandonment of the buyer.

4. Compete on customer service

In some cases, you may have a better set of product features than what your competitors offer, but you will find it very tough to tell your clients about the difference. So in that case,competing on customer service is often the best way to win.

Add live chat and enable your customers to chat with your agents whenever they need any assistance. Your excellent customer service may turn the game and make your brand most popular amongst all of your competitors.

5. Attractive product images and description

One single thing that would be considered for selling a product online is images. It also would not work vice versa if you design your eCommerce website with images but no product description. Don’t forget that people want to see it before they buy. One of the main ingredients of increasing eCommerce conversion rate is having high quality images of your products with description. Display your products from different angles and make them zoomable.

6. Offer multiple payment options

Seems good? But it has two issues:

• Because of the credit card info scandals, some people avoid using credit cards for online transactions (especially on a new website they are first time buying)
• As per the 2009 survey on 2000 online British adults, commissioned by Click and Buy, a leading internet payment system, 50% of those who regularly shop online said that if their preferred payment method is not available, they will cancel the purchase.

So, adding payment options like PayPal or Amazon payments, and COD (Cash on Delivery) mode makes you win over at least some of the customers you would lose otherwise.

7. Increase the trust for your business

Suppose you are not as big and popular as Amazon and you also don’t have the 6 digit budget at your hand for your eCommerce business strategy, monthly marketing and website development expenses.

Now, is it still possible to build trust and accumulate a loyal client base? Yes, it’s possible!

Start building strong and meaningful relationship with your clients. Be it a small or medium size online business, live chat will help you to take on the role of a friendly salesperson. It enables you to give a face to your online store and provide it with a sales person who can vow for your products and services.

8. Make your employees the product experts

When all of your employees will act as support, your customers will get their questions answered promptly.So make each one of your employees, the PRODUCT EXPERT.

9. Build an App World for your customers

According to a research, conducted by comScore’s Media-Metrix® Multi-Platform, “Consumers spend 51% of their digital time using apps as compared to mobile web at 9%.” So, an eCommerce enabled mobile app is very necessary to offer your customers a top-tier purchasing experience. Without it, you are surely going to lose sales.

So Opt for it today. Apart from that, as mobile is becoming more popular, you should also make an effort to make sure that your eCommerce website is also mobile responsive. As per Google, if your website is not mobile friendly and misconfigured, you may see a drop in your search engine rankings.

10. Deliver what you promised

Your customers don’t want you to do impossible things for them. All your customers want is to get what you promised. So deliver your products on time with a big smile.Don’t make them disappointed.

For example, once I ordered a dress from an online shopping site. They promised me to deliver the same with 7 ways. But I did not get that within their promised time. After waiting nearly 2 weeks I cancelled that order and never visited the site. So you see, keeping your promise is very important for e-commerce customer retention.

In eCommerce business, the big giants have a huge advantage over you- They are known. Now they don’t need to fight for trust and security issues like most of the small and medium sized online stores because they have already built their loyal customer base. People are already confident about their products and services.

You still need to go a long way to win customers’ trust. So follow your own eCommerce business ideas and try to learn from those big giants. Just don’t copy them.

Recommended for you:  6 Ways To Boost Your eCommerce Sales

If you own an online store, you may have seen the natural tendencies of most of the customers: they want to communicate, need advice, help and require clarifications regarding your products and services. This can be a crucial issue in any kind of business if one fails to provide all these. To improve the scenario and provide better customer assistance, live chat solution can be the best solution on your website which can make you the differentiator for turning your website visitors loyal to your brand and not to choose your competitors over you.

Today, the customers who visit your website for shopping, feel the need to interact with someone who can assist them to choose the best product from your website as per their requirements. This is the main reason why having an expert available on your website through live chat can be a very appropriate advantage for you over your competitors. It’s just like being attended by a sales person while shopping in a normal brick and mortar store. With this live chat for ecommerce, you can make your customers feel special, they will be satisfied and encouraged to build a relationship with you. And this is for sure may lead to customer loyalty.

Benefits of live chat for ecommerce website:

Offer instant assistance

Live chat ensures instant assistance that a ticket or email system always lack. There are times, when after selecting any product, the customer may want to know some additional details of that product, for example the exact colour or size measurement which is not available in the website In that case, writing a mail or waiting in the queue for a telephonic call may turn the customer impatient and you never know he/she may leave from there. Instant response from the live chat support agent will eliminate the scope of leaving your website in the middle of shopping.

Assist with technical issues, related to your website

Many times, your customers may face several technical issues such as failure in online transaction, slow internet speed, broken pages for which they need to talk to a live person in your website. Live chat offers Click to Call, a distinct feature which provides voice call. With it, by just clicking a button, website visitors can directly talk to your support agents.

Get instant customer feedback

Now you don’t need to struggle any more to get customer feedback. You can make use of the live chat’s Triggers and Proactive Chat invitations to start a friendly conversation and gather customer feedback more efficiently. With another feature- offline message, your customer can get in touch with you even when you are offline. They can send offline messages which your support agent will get when they come online. So through live chat for ecommerce website you can assist those customers who came on your website when your support service was not available.

Keep a track of your visitor’s activities

Live chat helps you to monitor your visitor’s activities on your website with its features- real-time visitor monitoring and reporting. Now you can monitor your website visitors in real-time, you can get reports (day, week and month basis) on the number of chats, page visits, total number of visitors, their IP address, Countries, geographic locations, past chats etc. These statistics also can be filtered on agent basis to have an idea about your support agent’s performance.

Increase sales conversions

Knowing how your chat agents are performing is very important to understand the quality of your support service because it influences your customer’s buying decision. Live chat for ecommerce makes the whole process easy. Its Chat Monitoring feature enables you to check the previous chat history of your support agents and helps you to have an idea about their performances.

Apart from that it also provides an overview of every visitor- past visits, previous chat, and time on site. An agent can use these info to start the conversation in their own context and then decide what will be the right offer to give. It could be an up-selling or cross-selling opportunity or coupon code that may improve sales conversion rate.

Cost effective

Setting up the best live chat software for ecommerce is very easy. While a phone operator can serve only one customer at one time, a live chat agent can handle multiple chats thereby decreasing the human resource expense. Apart from that, its Queuing feature, enables you to specify how your incoming chat requests will be handled when all your agents are busy in assisting others.

It gives information to your website visitors regarding their waiting time in chat queue and sets accurate response time expectations.Apart from that if your agents are too busy in handling others and people are waiting in chat queue for a long time, as an admin also you can start providing support to them from your dashboard itself.

So implement the best live chat software for your ecommerce business today and see the difference.