19DECEMBER 2022By Niraj Gupta, Head Of Digital Banking, Cambodia Asia BankOPINION!WHY DIGITAL BANKING ARE FAILINGWe want to go digital; move away from traditional banking to digital and transform our business," said a senior banker. But in all conversation, he overlooked one component: customer. My response is simple, ditching the digital for a better customer experience is a priority before considering a transition.Banks around the world are moving towards digital. According to BCG, this led in an increase of online banking by 21%, mobile banking by 30% over 2021. This goes to show that today's generation or the banking customer wants a convenient, fast and accessible banking services.Unfortunately, banks tend to overlook can only be done successfully if the customer experience is satisfied. The platform is tailored made for customers to satisfy their needs, not the bank alone. The business strategy is built around the customer behavior. It consists of needs and wants. In order to successful achieve a smooth transition, banks need to assess their digital, leadership and operational capabilities.It is an eye opener for most banks which sometimes it's too late to realize. Some traditional bank faces the issues where money to spend on building technology, but they lack leadership capabilities. While others might be strong in leadership capabilities but lacks digital capabilities. So, banks need to be truthful in knowing where they stand.Once identified, the most important factor is working on their operational capabilities. As this is inside out where the processes and legacy systems needs to be developed. Sometimes it becomes a major roadblock to go digital. So, all the three i.e., Digital, Leadership and Operational capabilities need to perform together.Banks should realize few things while building digital platform for their customers. Digital is not only about bringing the technology and assuming the tech will do most of the work. This is the common mistakes done by most of the organization i.e., Putting solution before the problem. One of the common misconceptions is treating digital transformation as tech issue. First, improving our underlying process which are very rigid in their approach. It then becomes easier to attract new customer and keep engagement with existing ones. This can be done by having front-to-back approach which focus on three things firstly front end focuses on customer relationship, customer insight and channel while the second part back end focuses on product and services, user insight and developing better user experience based on their need, the third part is simply connecting both i.e., front-to-back.Once the approach of front-to-back is taken into consideration then customer journey takes the preceding. The customer journey begins when customer perceives the need involving decision making process. So, we need to think on how to get involved with customer in their decision- making process through chain reaction. This involves bank's process and operating model including some invisible functions such as Risk and Compliance, technology, change management and agile delivery.Banks needs to move away from just offering product and services to customer-centricity. This can be done not only from the technology or strategy point of view but making changes internally. Banks who wants to bring these changes needs to motivate their people to go above and beyond their duty and basic requirement of the customer.Banks who wants to really win the digital race needs to first ditch the digital and focus on the customer first. Digital is not only about bringing the technology and assuming the tech will do most of the workCXOINSIGHTSNiraj Gupta
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