Digital banking has powerfully displaced the established traditional banking system. It can be referred to as a fintech disruptor because technology has fundamentally altered the way financial and banking transactions occur. It is a technological advancement that has shaken up the existing banking models, processes, and practices, creating new opportunities and challenges.
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How traditional banks can overcome fintech disruptor challenges?
Daniel Suero Alonso is a young fintech entrepreneur, who helps businesses get Fintech licenses essential for digital banking services.
The simple mantra to overcome fintech disruptor challenges is –
‘Embrace the digital revolution’
Develop user-friendly apps and websites
Traditional banks can enhance their digital offerings by developing user-friendly and intuitive mobile applications and websites. This would make it easier for customers to access their accounts, make transactions, and manage their finances.
Incorporate Artificial Intelligence [AI]
AI can automate time-consuming tasks and processes, such as data entry and customer service inquiries, allowing banks to operate more efficiently and reduce costs. AI can analyze customer data and behavior to provide personalized recommendations and services, improving customer satisfaction and loyalty.
AI can detect fraud patterns and anomalies in real-time, helping banks to prevent fraudulent activities and protect their customers. Besides, analyze complex data sets and provide insights that can help to manage risks more effectively.
In general, incorporating AI technology into their operations can help traditional banks stay competitive in a rapidly evolving financial services industry.
Move to the clouds
Cloud computing allows banks to quickly scale up or down their IT infrastructure to meet customer demand. This agility is necessary for banks to remain competitive in a fast-changing market.
Cloud providers offer robust security features that can protect sensitive customer data better than traditional on-premises IT infrastructure. Banks can collaborate with other financial institutions and fintech companies with ease. This collaboration can result in innovative solutions that benefit customers.
Cloud technology can help banks provide a better customer experience by providing faster and more reliable services.
Read also: Can Blockchain Technology Improve The Vulnerabilities Associated with Cyber Security?
Prioritize a customer-centric approach
Here are some recommendations on how a bank can become customer-centric using advanced tools and technology:
- Listen to customer feedback: Banks should actively seek feedback from their customers through surveys, feedback forms, and social media. The feedback helps to identify areas of improvement and customer satisfaction.
- Personalize customer experience: Banks should strive to personalize their services based on the customer’s needs and preferences. This includes customized products, targeted marketing, and personalized communication.
- Simplify processes: Banks should simplify their processes to make it easier for customers to access their services. This includes digital banking, self-service options, and streamlined processes.
- Train employees: Banks should train their employees to be customer-centric by providing them with the necessary skills and technical knowledge to understand and meet the customer’s needs.
- Emphasize customer service: Banks should focus on providing exceptional customer service by being proactive, responsive, helpful, and accommodating to their customers.
- Foster a culture of customer-centricity: Banks should create a culture that values customer-centricity by making it a priority in their business strategy, policies, and practices.
By implementing these strategies, a bank can become more customer-centric, which allows it to improve customer contentment and loyalty. It can even attract new customers.
Traditional banks need to adapt to the changing market by investing in digital technologies including apps, software, website, AI, and clouds, and prioritize a customer-centric approach.
