With the evolution of digital touchpoints, banks have mastered right channeling to drive customers to lower cost digital channels for self-service. As customer adoption of digital channels is in full force and customers are calling and visiting branches less, banks are looking for innovative ways to inject a human touch into their digital channels. Specifically, banks need to focus on identifying high value interactions and directing customers to the right channel, for the right interaction, at the right time. In order to be successful, the strategy must be more than slapping an 800 number online and saying “here’s my number…call me, maybe”. Bank Hapoalim, one of Israel’s largest banks, recognized the strategic implications of limited customer interaction and implemented a strategy to inject a human touch into digital banking to meet the needs of high-value digital banking customers. The strategy focused on:
Integrating Human And Digital Channels. Each customer has unique needs and communication preferences. Allow self-served customers to select preferences by providing channel options and use right-channeling to drive low-complexity tasks to digital channels and high-complexity tasks to a bank representative.
Adapting To Evolving Touchpoints With Agile Commerce. Agile commerce is an approach to commerce that enables businesses to optimize their people, processes, and technology to serve customers across all touchpoints. As touchpointsevolve, eBusiness and channel professionals must remain focused on making decisions that support a customer’s ability to interact across human and digital touchpoints.
Infosys announced last week that Bharti Airtel, India’s leading mobile service provider, has selected its WalletEdge platform to operate Airtel Money, the first mobile wallet service in India. This announcement is interesting from a few different perspectives. First, it will provide a new source of revenues for the Indian telecom industry, which has been struggling with low ARPUs for several years. Second, it’s a boon for the banking industry, which will find a way to accelerate financial inclusion initiatives in line with the recommendations from the Reserve Bank of India. Obviously, the urban Indian consumer will also benefit from the “pay anytime, anywhere” convenience of such a service.
I also look at this deal from an IT services industry perspective, and I believe that it embeds a set of very interesting attributes that will become increasingly prevalent in the way IT services vendors engage with their clients moving forward:
One of the things that continues to surprise me about many banks’ multi-channel strategies is how little most banks have integrated their ATMs into those strategies. Cash machines are by far the most commonly used banking channel. According to Forrester’s Consumer Technographics data, 74% of adults in Western Europe use a cash machine at least once a month, far more than use either branches or online banking that often.
Despite the introduction of Windows-based operating systems and colour screens, most banks aren’t doing much to engage customers on this most-frequent touchpoint. Most do little more than promote the product of the month to all comers. Only a few leaders, like Singapore’s OCBC Bank and Spain’s La Caixa, have integrated ATMs into their CRM systems, which lets them do clever things like remembering customer’s normal withdrawal amount, wishing customers a happy birthday and making products offer that are relevant to that particular customer.