Banks operate in a competitive and fast-paced environment of constantly changing regulations, where they deal with a complex set of products that have changed over time. Add into the mix ageing infrastructure and applications, along with the need to operate efficiently across a broad range of jurisdictions, and you have a very complicated situation.
It’s quite obvious that banking processes need to be simplified as much as possible, not only to make things easier and less complex for the end-user but also to operate more cost-effectively and be easier to manage.
With rivalry expanding from both customary and non-conventional money related associations, the significance of improved shopper experience and resultant fulfilment and loyalty has never been more prominent. Not exclusively does an improved experience sway development of a relationship, however, it can likewise improve referrals and even the financial matters of serving clients and individuals.
Let’s look at a few key ways banks could simplify their processes, automate some processes and generally make life a lot less complicated for their customers.
Banks Need To Ditch Their “Complexity” Mindset
As technology and the needs of the modern world have evolved, especially during and ultimately after the COVID-19 pandemic, the banking system in Australia and across the globe has become increasingly more complex, despite technology making everything instantly more accessible.
Because of the very precise and meticulous nature of the banking industry, rather than simplifying and streamlining their process as technology has evolved, banks have gone in the opposite direction and made their processes more complicated and time-consuming than ever.
A traditional mindset has carried over into a new world where banking customers expect more immediate results. In order for banks to be able to deliver what customers in the modern age really desire, they need to ditch the complexity mindset and start thinking about how they can deliver their products and services in a fast and simplified fashion.
Too Many Options Is Not Customer-Centric
If you go to a restaurant and the menu is ten pages long, the amount of choices and information is overwhelming. In the end, you don’t know what to choose.
The modern banking system is much the same way. Too many choices confuse customers, not helps them. Rather than plenty of variety is a good thing, customers now have to weigh up options left, right and centre before they can make a decision on which product or service is right for them. The problem is, it can be tough to determine what’s the best choice. Banks need to get back to basics when it comes to product offerings for their customers.
Adopting E-signature Technology Would Be a Huge Plus For Customers
Why are banks refusing to get on board with mobile optimized electronic signature technology? One of the core features of the banking system is providing credit in one form or another, and all applications for credit cards and loans require the customer to sign documents. E-signatures are the ultimate solution to make this process simple and very fast, so why haven’t banks adopted it?
At the moment, unless customers go into a branch to sign documents (very inconvenient), the only other option seems to be to print out the paperwork, sign it with a pen, scan it and then email it back to the bank—a laborious, time-consuming and paper wasting process.
A few banking exchanges, for example, loan endorsements, account openings, and investments have not encountered this digitized revolution as a result of the rigid prerequisites of client signatures. Businesses are ill-equipped to deliver instant & intuitive customer experiences. Consider Lightico for example, which provides services such as collecting forms, documents, e-signatures, photos, payments & more for digital customer interactions & simplify various business processes.
The adoption of electronic signatures (e-signatures) into these procedures will demonstrate to convey critical and quantifiable outcomes regarding the decrease in cost, speed of transaction completion, and upgraded consumer satisfaction.
Banks processes can take longer with regards to the advance loaning process when numerous applications are recorded and the marking authorities are either not present or are occupied with different documents. Electronic signatures permit straightforwardness between the organization and the client on the grounds that the marking procedure is prompt and move is made right away. This speedy handling builds the degrees of consumer loyalty since they don’t have to rush to the branch to give their marks.
E-signature technology was invented to expedite this kind of process; not only making it more convenient for customers, but it would also make life easier for banking staff as well.
Creating More Automated Processes
With the adoption of AI (Artificial Intelligence) in banking, there’s no reason why certain processes couldn’t be sped up by becoming more automated.
Automation and artificial intelligence, effectively a significant piece of consumer banking, will infiltrate activities more profoundly in the coming years, conveying benefits for a bank’s cost structure, yet for its clients. Digitizing the loan-closing and satisfaction experience, for example, will speed the procedure and give clients the adaptability and opportunity to view and sign docs on the web or with their mobile application.
An example of this is when a customer applies online for a loan or increase on their credit card limit. Rather than the approval/denial process having to always go through a manual review, AI could assess the details of the application and match it up against other information and criteria it has access to and offers the customer a decision, one way or the other, within minutes rather than days or weeks.
Utilizing paper to document the greater part of these procedures may prompt forgeries, which is beyond the realm of imagination when utilizing an electronic signature for banking. Digital banking offers greater security to the archives in travel and gives the confirmation that the signature belongs to the right individual.
Bank Simplification Relies On Putting the Customer First
When trying to work out the best way to engage with their customer base, many businesses attempt to put themselves in the customers’ shoes, seeing the processes from their angle. It helps business owners learn what customers want and expect, which ultimately leads to higher conversion rates and sales.
Well, banks need to adopt the same approach if they truly want what’s best for the customer and to keep customers happy and to come back for more.
If the banking hierarchy focused on customer-centric products, services and processes the way many other businesses do, they would be attracting new customers like bees to honey. Not just attracting them, but keeping them.