In today's emerging digital era, banks must be capable enough to come across with consistent andrelevant expertise in furnishing excellence for fulfilment of customer requirements. Many players areinnovating and experimenting with new products, delivery channels and analytics. Digitization hasenabled Banks to remove the limitations of Time and Geography.
With the evolution of new channels, we believe that behavioural analysis toohas a major part inproviding excellent customer experience and developing profitable customer relationships. One of themost effective ways to do this is by identifying, analysing and harnessing the knowledge within theorganization. To achieve this aim, banks can adopt the ABC approach:
Banks are considered richest, not only in terms of money, but also in terms of data. They have hugevolumes of data from various sources, generated at a high pace. The issues that pushed bankingindustry toward digitization are:
The most important issue being, the traditional model lacks in addressing the fact that No Customer isalike. Rather than implementing a one-size-fits-all approach, financial institutions can respond to thepreferences of the different consumer groups that comprise their customer base.
For Example, Pentation Analytics segmented the banked consumer population into 7 segments, basedon their card usage.
Digital channels pave the way to develop new forms of relationships through interactivity, selfservice,direct communication and personalized offers and services.
Digital transformation in Banking has led many players to adopt technologies like digital and mobilebanking. However, for better decision making and customized offerings, banks need to go further thanthat. This is where analytics steps in.
Analytics aren't new to the world of banking; many banks are gearing up for the next big analyticspush, propelled by a load of data and new sophisticated tools and technologies.
Analytics can be primarily used to drill down on existing data to extract valuable insights for enhanceddecision making. For example, in case of Customer Analytics, insights can be derived for:
The diagram below shows the various analytics application areas in banking:
Thus, we can see that customer demand, customer efficiency, and network effects play a significantrole in online banking adoption.Upon adoption of online banking, customers might significantlyincrease their transaction demand and their adoption of banking products by opening more accounts.As a result, they also increase their use of other bank channels, such as ATMs, customer support representatives(CSRs), and branch services. In addition, there is increased customer retention after onlinebanking adoption.
Banks can potentially increase their online banking adoption by working with customers to increasetheir service co-production efficiency.
1. Project experience & Banking Analytics collaterals at Pentation Analytics
2. Adoption of Internet banking :http://www.iosrjournals.org/iosr-jbm/papers/Vol11-issue2/G01124651.pdf?id=5020
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