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Why Digital Transformation in Banking Matters?

Ever since the COVID-19 pandemic restrained us to our homes, our expectations and our needs changed. To meet the changing consumer demands banking industry is undergoing an overhaul. However, the process of digital transformation in banking is nothing short of complex and full of intricacies.

Digital transformation in banking helps meet rising customer expectations, achieve speed, convenience, minimize operating costs, and fend off competition. The surge of new fintech companies and the shifting of tech companies into financial services is a warning sign for existing banks. It is high time for them to transform their business digitally.

Digital transformation in banking helps to create a more cohesive and personal digital consumer journey. It helps seamless customer movement from marketing to sales and financing to in-app billing to customer support. It saves money in the long run, frees up staff for other value-added activities, increases customer satisfaction, and saves time with automated processes.

Digital services pile up a huge amount of data. This data helps a great deal in improving your business models through actionable insights and informed decisions. Big data analytics help you understand customer needs from a new perspective, identify opportunities, fill gaps, optimize products or services, and automate solutions.

A reputed digital transformation consulting company like EPC Group helps you with data governance policies. It takes care of security, legislation, and strict frameworks intended to protect customer data and privacy.

Digital Transformation Solves Common Banking Problems

Apart from causing some unprecedented damages, COVID-19 highlighted the digital inefficiencies in the banking sector. Digital transformation in banking would have definitely prevented much of such chaos.

Customer Service: Many banks do not have the bandwidth to serve a large customer base needing immediate support. Lack of digital infrastructure caused hindrance in customer success. Customers expect higher responsiveness and more empathy from banks.

Paycheck Protection Program (PPP): Banking processes are largely manual and dependent on humans. Hence it forbids many from getting the financial assistance they need in bad times. Failure to imply work from home culture and inadequacy of required digital resources lead to sour customer relations.

Application Processing: Manual processes, lack of training, and missing technology tools delayed application processing. Error-prone system and laid-back attitude in banking employees towards accepting change is also a cause of concern.

Communication Siloes: The complex legacy phone systems having limited bandwidth failed to address consumer problems. Delayed loan applications, lengthy waiting hours, and the inability to reach the right person at the right time damaged consumer’s trust in banks. It ultimately hurts brand integrity

Dissatisfied Customers: Even though many banks have websites, mobile apps, and an array of online services, people faced challenges in accessing their accounts and spending their own money. Inappropriately digitized customer journey increased customer dissatisfaction bringing a bad name to the banks.

Features of Digital Transformation in Banking

Integrate Digital Technologies in Banking to Meet Changing Banking Requirements

Fraud Detection
Fraudsters are getting more advanced in their tactics. Hence, using Artificial Intelligence and Machine Learning, banking institutions can create a fraud detection system aligned to their needs to identify and reduce the risks of giving loans to frauds.
Big Data
Increase transaction safety by combining big data with ML. Use it for fraud detection, prediction, forecasting, customize offers, and increasing customer satisfaction and retention.
Cloud Computing
Cloud-based infrastructure gives access to a broader scope of technologies. It enables remote transactions and remote work without the overhead typically associated with on-premise data centers.
Predictive Analytics
Good analytics software like Power BI is necessary for the banking sector. It helps to forecast future trends for the next few weeks, months, years, and probably decades to align and optimize your business goals.
Internet of Things (IoT)
IoT optimizes the customer journey and collects data based on customer movements. It will find gaps and suggest areas needing improvement. It also helps in customizing offers and banking processes.
Improved Data Security
High-level data encryption helps in saving data from possible data thefts. It prevents data leaks to competitors and fraudsters. Additionally, it enhances the safety of financial transactions and safeguards critical banking data.
Agile Operations
No one likes to wait, especially when they trust you with their savings. The micro-service architecture along with Big Data Processing systems ensures faster, safer, and agile transactions.
Risk Management
By combining multi-level transaction validation with fraud detection and data security system, you mitigate unwanted risks from the banking equation. Besides, it eliminates human mistakes and errors in banking processes.
Workflow Automation
Repeating the same tasks over and over is mindless and inefficient labor. Automate repetitive tasks and save a considerable amount of time to invest in other value addition activities like relationship building.
24/7 Service
With digital transformation, online banking services are made available to customers as and when they need them. Mobile apps, online portals, and websites keep banking services open all year round and on weekends.

Need Help with Digital Transformation in Banking?

The digital transformation consultants at EPC Group perform an in-depth analysis of the current technology infrastructure used by the bank, its market dynamics, know their customer wants, and understand their capabilities. With enough information, they work on some key points leading to an informed decision. Any response to these key points assists the client in understanding the perfect approach they need to mitigate risks, balance business drivers, and enhance current capabilities.

  • Since every bank and its operations are different, we never adopt a one-size-fits-all approach.
  • EPC Group first analyzes the core capabilities, regulatory compliances, and processing requirements of the bank. Depending on the current infrastructure, we decide whether they need a straightforward data strategy or modernization of the legacy infrastructure.
  • Our digital transformation consultants will perform every task needed to modernize the current legacy infrastructure and transform it into a modern sophisticated technology environment.
  • If required, we will build cloud-native applications that are open, scalable, and extensible.
  • We will work on a data strategy to make it more comprehensive, safer, and efficient. It includes migrating data from the legacy systems to the new system of your choice.
EPC Group is a leading and trusted provider of digital transformation consulting services. We help banks to lead the modernization path by designing a core digital transformation roadmap. We create effective solutions using our capabilities, experience, and tools and then implement them across all aspects of digital transformation in banking.

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