2020 has changed the digital transformation discussion from when to how. A recent survey found that for the first time, 30% of employees are working from home and 20% have experienced remote learning. That does not include the people who are ordering grocery or food services online and making telehealth appointments. Nor does it include the percentage of consumers over the age of 40 who are giving subscription services a try.
Human behavior has changed. Not everyone has embraced the new ways of doing daily activities; but for many, the convenience of online interactions has become a necessity, not just a nice to have. Organizations that recognize and adapt to this change are more likely to survive. They will be able to attract and retain new customers because they are meeting the demand for seamless digital experiences.
Unfortunately, the financial services industry has struggled to complete its digital transformation. Obstacles such as security, legislation, and legacy frameworks may have hampered its transformation, but the industry can no longer wait. It must speed up its transformation to ensure it delivers exceptional customer experiences.
It needs to:
- Digitize paper processes
- Apply data analytics
- Deploy new technology
Incorporating these initiatives into a comprehensive strategy can accelerate the industry's digital transformation to meet the expanding demand for more online customer experiences.
Digitize Paper Processes
Most financial services providers have digitized some of their paper-based processes - applications can be completed online and regulatory reports can be generated electronically. Unfortunately, many of these digitized processes are stand-alone, meaning that many core processes still rely on manual data entry and paper-based processes. The process isn't really digitized from start to finish.
Due to the haphazard nature of digital transformation, the free flow of data is yet to be achieved. To create a cohesive and personal customer experience, organizations must integrate their processes, so the same information is available to everyone interacting with the customer. This means mapping data flow as it moves through the system, making sure that the right tools and applications are available at critical points. A company doesn't want to ask customers to repeat themselves. An interesting statistic, over 50% of people would rather wear wet socks for an entire day than repeat information!
As data moves through the enterprise, institutions need to collect data that can help personalize a customer's journey. The more personalized the experience, the stronger the relationship between an enterprise and its customer.
Achieving this level of digital transformation means investing in tools that ensure seamless digital experience in the front-end, while also supporting the free flow of data through the enterprise systems.
Data Analytics and AI tools as drivers of customer experience
Financial institutions have access to a wealth of customer data. These massive amounts of data can be used to improve operations, develop business strategies, and deliver products and services.
With predictive modeling, companies can offer products and services to customers before they realize they need them. Modeling can even identify potential problems such as loan defaults before they happen.
The more digitized an organization becomes, the more data is collected. Without careful planning, the amount of data can become overwhelming, and the results can become less insightful. As the financial services industry goes fully digital, it must ensure it is collecting the most appropriate data from the critical points in the customer's journey.
For example, combining internal data with external data sources, financial services providers can identify which customers may be looking to trade-in a car or downsize a home. From the analysis, they can develop a targeted information campaign that lists things to consider when trading-in a car or downsizing a home. This level of personalization helps strengthen relationships and reduces the loss of customers.
Analytics and modeling are technical tools that have become possible because of improvements in processing power and algorithm development. They are just two technologies that are accelerating digital transformation.
How no-code platforms accelerate enterprise digital transformation
No business can achieve digital transformation without technology. Whether it's data analytics or machine learning, companies must explore the best technologies for their business strategies. One technology that more businesses in the financial sector are considering is no-code platforms.
These are software solutions that allow non-programmers (citizen developers) to create applications suited to the specific needs of an organization.
The availability of IT developers cannot keep up with the demand. The U.S. demand for IT professionals is expected to grow between 15% and 20% over the next ten years. The shortage of programmers means organizations may outsource development, wait months for a solution, or develop a shadow-IT department where non-professionals create their own solutions using existing office tools such as spreadsheets.
These shadow-solutions are limited and are not intended to address the IT requirements for availability, performance, or security. That's where no-code solutions come in. They provide a platform that enables citizen developers to create applications while maintaining a level of performance and security that doesn't adversely impact a company.
Business units can create solutions that address their specific needs without waiting for IT availability and without compromising system integrity. That capability means institutions can become more agile, delivering solutions that increase productivity and customer satisfaction.
No-code solutions can help companies digitize their processes from start to finish, eliminating the need for human intervention. They can become a resource for collecting data, even for short-term campaigns or surveys. Deploying no-code platforms enables institutions to use their IT resources as effectively as possible without impacting the customer's experience.
Embracing seamless digital experiences with no-code platforms
As people become more comfortable using online resources for daily activities such as buying groceries, filing an insurance claim, or applying for a loan, they will be looking for companies that can satisfy their needs as seamlessly as possible. A digital solution that presents obstacles or does not provide consistent experiences will only frustrate customers.
That's why it is essential for the financial services industry to look into technologies that can bridge the gaps in legacy processes. No-code platforms can accelerate the migration to fully digitized ones. They can also address the needs for agile solutions that improve a customer's journey while contributing to the wealth of data needed for more personalized experiences.