By Satish Roy
India’s BFSI segment is undergoing a major transformation as both private and public players in this space are embracing a customer-centric approach. Based on this model, a series of digital initiatives and technology-linked processes are being implemented to deliver greater customer satisfaction and adapt to the new normal of online offerings.
The emergence of seamless interactions through digital technologies has led to changing consumer expectations, driving the need for more personalised services. The impact of the digital shift is evident from multiple cases. For example, one of the country’s largest private sector banks has stated that more than half of all its transactions are now happening digitally. Similarly, India’s largest public sector bank has a mobile app to service customers, something unthinkable a few years ago.
Far-reaching Impact of Digital Offerings
Today, customers are not interested in visiting various bank branches to withdraw money or use allied banking services since these can be availed swiftly, securely and conveniently from the safe confines of their homes. BFSI players who do not offer online services risk losing their customers to digitally-savvy competitors.
This is not surprising as the impact of digital transformation is palpable. A legacy brokerage firm that barely managed a few thousand leads every month is presently garnering almost one lakh in the same period after going online. This is because banks and other traditional entities that spent considerable time and resources engaged in non-value-adding tasks such as chequebook requests and other mundane work are now focused on cross-selling activities that augment their bottom lines.
As a result, BFSI companies have embraced digital technology to meet rising consumer expectations while retaining relevance and enhancing their market competitiveness. Due to the digital transition, customers can conveniently access a broad range of services. These include fund transfers, applying for loans and managing their accounts smoothly via online platforms and user-friendly mobile apps.
Consequently, the country has the world’s highest fintech adoption rate at 87% versus the global average of 64%.[1] The rapid rise of the fintech space has accelerated the online transition of BFSI companies by replacing the brick-and-mortar model with digital transactions.
The innovative financial products and services include the use of digital wallets and mobile banking. Through Google Pay, PhonePe, Paytm and other mobile wallets, financial transactions are more secure and much easier since the credit and debit card information is already saved on these platforms. But since sensitive information is stored online, all data is fully encrypted, making sure that digital wallets provide greater security compared to conventional payment means.[2]
Customer-centricity and AI-enabled 24/7 Services
Artificial intelligence and chatbots are also gaining increasing prominence in the BFSI space since they provide 24/7 support along with personalised recommendations and speedy resolution of issues. With AI-enabled digital tools, customers can seek assistance at any time of the day or night.
Besides, customers can have self-service requests fulfilled in real-time while receiving help in money transfers and other online transactions such as checking their account balance, paying bills, GST, etc. Automated facilities are also used to offer customers alerts or reminders on upcoming due dates for payments, account balance updates, investment advice and more.
The focus on customer-centricity is backed by varied digital tools, including data analytics, which plays a key role. Analysing massive amounts of consumer data helps BFSI firms gain valuable insights into the behaviour pattern and preferences of customers. With this crucial information, it is possible to provide personalised products, offers and services that are customised as per specific customer needs.
Given its various benefits and implications, customer-centricity has sparked a cultural shift within BFSI entities. Actively engaging with customers and incorporating their suggestions fosters greater loyalty and builds stronger relationships. Prioritizing consumer feedback and addressing complaints helps in responding promptly and improving an organisation’s overall services and customer experiences.
Delivering exceptional customer experiences in turn leads to increased customer satisfaction. When customers are satisfied, they are more likely to stay loyal and recommend the company to people within their circle. Improved customer experiences positively benefit brand reputation, differentiating these organisations even in highly-competitive markets.
However, it should be noted that implementing digital transformation and customer-centric strategies could pose some challenges. To begin with, data security and privacy concerns would need to be addressed in gaining consumer trust, which may only be possible by ensuring transparency during customer deals and interactions.
Moreover, ensuring seamless integration across various channels and touchpoints requires careful planning and execution. Yet, customer expectations will keep evolving and rising with advances in technology. Therefore, BFSI companies should stay agile and adopt a flexible approach to meet changing consumer requirements. This could be done via an innovative approach that includes using voice assistants, blockchain, biometrics, machine learning and more to keep improving customer experiences.
It is only through an agile, flexible approach that BFSI players can keep meeting dynamic customer expectations while delivering exceptional experiences. By deploying digital tools, leveraging data analytics and creating a consumer-centric culture, companies can enhance customer experiences, thereby gaining an edge even in ultra-competitive markets.
(The author is Satish Roy, Chief of Customer Experience – mPokket, and the views expressed in this article are his own)
