Getting ready for the future: banking digitalization
The purpose of digitalization is promoting immediacy, effectiveness, and improvement in customer experience.
The digital world has been established as the most efficient way for daily tasks to be carried out in simpler ways. In commercial industry, digital tools operate according to market demands, and responding to the immediacy of technological disruption is important, such as companies increasing profitability within an extremely competitive environment.
The digitalization of processes involves factors depending on the company’s business line and interest, and the strategy’s value and viability that will be implemented. The digital environment of the business world is focused on users based on their criteria, and will shape the operation methods in a digital context. However, not all organizations can undergo an absolute digital transformation, since it could affect daily operations, or a counterweight, if it does not have a support team that is prepared to manage the resources and tools supporting the execution of digital system.
The digitalization of the financial system, specifically the banking sector, has made progress in recent years. According to the 2019 Digital Customer Experience Index for Banking, banking in the country [AGH1] has decided to venture into the digital era by adapting technological solutions for customers. All banks in the study have a digitalized basic banking service, through a website where the customer has access to accounts or through a mobile app.
A website and mobile app are the first steps of the digital transformation. According to the study, there are several criteria to observe the bank’s behavior in digitalization: the ability to offer solutions, the degree of process simplification, the effectiveness of executing transactions in cybersecurity structures, the use of biometrics in the access paths, and improving customer experience. Once the organization focuses on the customer, adapting to the digital environment, the digitalization process will produce the intended results.
The transfer to digital channels is increasing, but this procedure must be competent, reliable and needs to be taken into account by banks and related institutions. Escalating the customer’s position is the starting point to make digitization easier and more complete. Building the customer’s trust with effective tools, providing recommendations to the user to educate on financial matters, presenting several options to customer operations, and supporting possible difficulties within the service are some of the best practices that will determine the effectiveness of the transfer to the digital environment.
The Mexican financial system has multiple opportunities to execute massive migrations to the digital environment. In banking, some details in the first steps need improvement, mainly those for solving tangible problems and customer service. Although Artificial intelligence, Big Data, and Blockchain help optimizing processes, the human workforce will always prevail due to its action and decision capacities.
e customer has access to accounts or through a mobile app.
A website and mobile app are the first steps of the digital transformation. According to the study, there are several criteria to observe the bank’s behavior in digitalization: the ability to offer solutions, the degree of process simplification, the effectiveness of executing transactions in cybersecurity structures, the use of biometrics in the access paths, and improving customer experience. Once the organization focuses on the customer, adapting to the digital environment, the digitalization process will produce the intended results.
The transfer to digital channels is increasing, but this procedure must be competent, reliable and needs to be taken into account by banks and related institutions. Escalating the customer’s position is the starting point to make digitization easier and more complete. Building the customer’s trust with effective tools, providing recommendations to the user to educate on financial matters, presenting several options to customer operations, and supporting possible difficulties within the service are some of the best practices that will determine the effectiveness of the transfer to the digital environment.
The Mexican financial system has multiple opportunities to execute massive migrations to the digital environment. In banking, some details in the first steps need improvement, mainly those for solving tangible problems and customer service. Although Artificial intelligence, Big Data, and Blockchain help optimizing processes, the human workforce will always prevail due to its action and decision capacities.
Digitalizing banking operations is a response to satisfying the user’s demands, using technology devices as tools that manage their finances. Banks that digitalize their procedures will have access to a larger amount of customers who will provide feedback on the service, reset the consumption modes and optimize the service.
The digitalization defines the business operations of the future, and banks should consider adjusting to those changes that may impact the sector without overlooking their essential duty. Moving to a digital environment renews the corporate image and increases profits. Increasing customers with better conditions for the business is possible through digital channels; traditional processes have disappeared and the organization that is unable to understand this is destined to imminent failure.
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