4 strategies for banks to handle the COVID-19 curveball
“Evolution is a gradual process. While it’s important to adapt to newer technologies, we’ve still got a good solid set of customers who like our traditional offerings. We’ll go digital, but all in good time.” Well the truth is, earlier this year, several businesses had this frame of mind while prioritizing their company’s digital transformation.
For a customer, until earlier in 2020, using technology to do our everyday tasks was a luxury and a convenience that was left to our discretion. But with the onset of the COVID-19 pandemic, we’ve suddenly transitioned to a society that’s doing everything possible virtually — from gym classes, to doctor’s appointments, virtual weddings, virtual meetings, and we’ve even managed to have a virtual Thanksgiving dinner!
Suddenly, all businesses are now in a frenzy to make all their offerings as digital, as virtual and as easily accessible to everyone to retain their customers and survive. Banks most certainly are not left out of this hustle, but additionally are also one of the most crucial sectors to go digital.
The pressure on traditional banks to broaden, sharpen and hasten their digital initiatives has only become more intense with the onset of the pandemic. It is imminent therefore for banks to make cataclysmic changes to their earlier approach. This can be done in a number of ways.
- Trust the existing strategy adopted and deploy resources to fortify it: With the given digital infrastructure available, maximize customer retention and satisfaction by increasing resources and manpower in call centers, technology support and by making minor alterations to the existing platform (App/Website).
- Develop an all encompassing, state-of- the- art digital platform inhouse: Dedicate an experienced software development team and provide all necessary resources for them to create a platform that is extremely compelling and competitive with extreme pressure on the timelines.
- Acquire/ merge with a fintech that has the necessary resources: Make the most of synergies by acquiring a fintech which has the digital strengths and capabilities that are complementary to the business. This however requires a very high due-diligence and strategic alignment as it may turn out to be counterproductive if not executed well.
- Avail services of Fintechs that have niche digital solutions that suit business needs: A quicker, simpler and low-risk strategy would be to partner with or make use of the services of Fintech companies that are in the business of offering digital transformation as a service (DTaaS).
Every bank is unique and is at a different stage of their digital journey, some far ahead and some catching up. Whatever strategy the bank chooses to adopt, it is imperative that they put the needs of the customer before everything else. Recent reports indicate that banking customers have gradually crossed the digital chasm in 2020 and are more comfortable interacting digitally. The onus is now on the banks to connect and provide all the digital resources to increase loyalty and retain customers.
At Flaist, our mission is to enable Banks fast track their digital journeys to provide enhanced customer experience. Flaist offers banks a plug-and-play digital transformation solution that can be embedded into their existing technology infrastructure (Apps and/or Websites). Banks can now offer customers an enriched customer experience with the lowest go-live time in the market. To know more, visit www.flaist.com.