Posted on: 13 May 2020
The one-stop financial services shop is allowing banks to cross-sell retail banking, insurance, auto lending, and investment products. Yet only 36 percent of customers are fully satisfied with their service and 45 percent are not loyal to their bank. The high rate of dissatisfaction makes customer retention more difficult and attrition more likely.
Because customer data still sits in silo legacy data systems, banks are becoming less customer responsive and customers more dissatisfied. The digitization of financial services on the cloud, on the other hand, provides a more responsive, faster, and secure end-to-end customer experience. But to provide this level of service, the document scanning and centralization of all data is required.
Once fully digitized, financial services providers can rapidly and intelligently respond to customer demands. Customer data can easily be aggregated and manipulated. This data intelligence, in turn, can be combined with big data to provide powerful insight into customer financial services needs. Digitization enables financial services to:
Build Trust Through Customer Responsiveness
Critically, digitization provides more ways for financial advisors to build trust with their clients. One way this is accomplished is by being able to immediately view the client's history. Access to client historical savings and lending rates enables advisers to easily quote a comparable or better rate. With big data, you can easily compare rates with those of your competitors. You do not have to worry about your customer finding competitors have lowered their interest rates that morning — an assured trust breaker.
Lower Credit Risk
Not only can you view the customer credit score but the score and interest rate change over time. In this way, a more complete credit picture is provided. The bigger picture big data is creating for lenders is significantly lowering missed payments and loan defaults. Different credit risk scenarios can be generated nearly instantaneously. The financial advisor can then confidently upsell some investment products while avoiding those that do not match the customer's current or future financial risk profile.
Improve Trackability and Auditability
In a financial world in which customers are wearier of e-fraud, you can assure them of higher data security. Data on the cloud is more transparent. In coming years, the blockchain — a digitized distributed ledger — will provide transparency and accountability to every financial service transaction. Traditional financial services databases, in contrast, have low traceability.
Your customers eagerly await the opportunity to use biometric technologies across their entire financial life to ensure that no unauthorized parties access their data. But you will be making false promises if full document scanning and digitization of legacy systems is not achieved.
Digitization is giving a new meaning to customized financial advice. Your financial advisors' interactions will be more relevant and personal and, critically, trustworthy. To begin your transition, contact a document scanning company like Indigital Inc.Share