As digital revolution gained pace after 2000’s, everything that came in its way became digital. Marketing became Digital marketing, Shopping transformed into Online shopping and banking became digital banking.
Banking Beyond Borders.
Traditionally Banks form policies and guide lines which their customers have to follow. But then innovation in mobile industry came and banking customers gained access to smart device, which connected to internet opened a new world of financial activities. In digital banking, customer dictates the business guidelines and policies.
In today’s connected world, banking customer can do financial activity with anyone, anywhere and at anytime without visiting his bank or depositing cheques that took days of clearing. In digital banking all banking processes are transparent to user, banks have to manage all that stuff this at their end without disturbing the user. Banking is no more restricted to specific working hours, it’s 24-7-365.
Interacting with Banks.
Banking has been transformed across various channels, from Single Channel to Multi Channel and then to where we are standing right now Omni channel.
In single channel customers can interact with banks only though one channel i.e. by visiting the bank. It’s the traditional way of banking before digital banking step in. In Multichannel banking, user can interact with their financial institutes using one channel at a time, all channels are independent of each other. Examples of channels in multichannel banking are customer care or accessing via computer.
To cater modern fast business needs Omni channel banking system has been introduced. In Omni channel, the channel barrier has been dissolved as consumers can do financial activities anywhere and at any time using anything and it’s the bank who has to take care of all user requests coming from various channels.
Need for Digital Omni Channel.
Consumers no more stick with single smart device for carrying out a financial transaction. All smart devices are connected with internet 24/7. On internet sites like eBay and Amazon let you do shopping regardless of which device you use. This is just one example of why we need digital Omni channel banking today.
Technology like Internet of things (IoT) have taken connectivity to next level. With IoT, everything from schools, hospitals, shopping malls to your home devices will be connected online. It is estimated that by 2020, more than 20 billion devices will be interconnected over internet. More connectivity for baking sector means more online transaction and since there will be diverse channels from which people will be accessing their accounts need for Omni channel is inevitable.
Future of Banking
Banking experts predicts that by 2030, there will be reduction in number of branches a bank maintain. As more and more digital touch points are emerging, financial activities are done in automated way by software’s residing in banks data centers.
Using technologies like Internet of things (IoT) and Big Data, Banks now are in better position to understand user requirements that can help them in providing integrated solutions for better consumer experience resulting in better customer retention rate and increase in revenue.
Banks have already started taking Digital Omni Channel seriously, as banks now allow facilities like cheque deposit from mobile app which was a feature not available before Omni Channel Banking.