13. Digital Channels Flashcards
(43 cards)
Why might in person delivery be better than digital?
To improve the banking relationship
What does Omnichannel mean?
Offering the same set of services available to customers across all channels (both digital and online)
Eg offering same level of service when shopping online and in store in retail
What is True Omnichannel?
When customer can switch seamlessly between channels in the middle of a conversation or transaction without any break in service.
Eg you’re paying a bill on your PC and need to leave for a meeting so you switch to phone service. Instead of starting the process again the system would recognise your number and pick up where you left off.
Do people want Omnichannel services?What percentage of users tend to switch devices before finishing a transaction?
Yes, most people do. 46% of people switch devices before finishing a transaction.
Who finds it easier to implement Omnichannel services? New banks or legacy banks? Why?
New banks, they build their channels from scratch to work in this way. Harder for legacy banks to switch to a joined up approach.
This will require IT upgrades which require additional costs and enhanced security.
In what decade were online banking systems introduced?
1990s.
What are the benefits of Omnichannel services?(7)
THINK: EU SO(AR) DC
1. Improved customer experience
- choose any channel they wish and not repeat themselves when switching.
- Better understanding of customers
- analyse info being fed through different channels to build detailed profile on preferences and behaviour - Increase sales & offer new services
- more likely to have successful sales if you know more about your customers’ behaviour (targeted product sales based on this)
- able to develop your services to make them what people want if you know more about customers’ behaviour
4.Reduce operational costs
- streamlined services
- automated services. Frontline staff still necessary but can become more specialised in providing outstanding service. Their time becomes more freed up and they can offer more tailored service based on info gathered.
- Attract & retain customers
- allows banks to better meet modern customers’ sophisticated and demanding expectations.
- switching is now so effortless that it’s even more important to provide outstanding experience so custs don’t switch - Increased digital security
- able to use multifactor authentication across different devices. - More opportunity to communicate with customers
- more ‘touch points’ for intervention, able to solve issues more quickly
Give an example of how Omnichannel can help with frontline processes.
Customer starts a mortgage application on laptop and later completes it on their phone
Give an example of how Omnichannel can help with back office processes.
When existing customers want to buy a new product or service, customer data can be prepopulated from existing stored data held on them. Staff don’t need to manually enter data again.
What does multichannel mean?
Services are offered across multiple channels but these act independently of each other.
Ie what banks have been doing until now
What are the main challenges faced by banks when switching to Omnichannel? (2)
- Higher cost
- still have to run bricks and mortar bank but now have to pay for online systems as well - Updating legacy systems to Omnichannel is logistically difficult and costly
Which more complex transactions do people usually prefer to deal with in person? (3)
- Mortgages
- Personal loans
- Investments
What does onboarding mean?
Acquiring new customers
With regards to multi-channel and omnichannel, which is bank-centric and which is customer-centric in its approach?
Multi-channel = bank centric
Omnichannel = customer centric
What is meant by distribution mix? Give an example of how this can vary.
How banks choose to distribute their services.
eg. banks downsizing their branch networks
What percentage did the number of bank/building society branches fall by between 2012 & 2019?
22%
What effect has moving to digital platforms had on customer data security?
A rise in opportunity for hackers/data theft.
What happened with the Equifax hacking scandal in 2017?
Hackers stole 200,000 credit card numbers and were able to get in due to a ‘Apach struts’ vulnerability in the software which Equifax knew about but failed to fix. Equifax were forced to pay redress to the victims.
True or False - data stored on digital platforms should be kept to a minimum?
True, the less stored, the less that can be gained by hackers. Store only what is necessary.
Having Omnichannel services alone is not enough. Banks must learn how to use then effectively. How can they do this?
Analyse customer needs and habits to identify appropriate products & services & then place these on platforms that customers are already spending their time on.
How can banks adapt their Omnichannel services to meet the following customer habits & needs:
- Customer wants to be more knowledgeable
- Demanding and time poor customers
- Bank should create more information across the internet, social media and online consumer sites.
- Self-service functionality or offer a chatbot to help answer quick questions.
Banks should utilise social media better by… (4)
- Determining their TARGET AUDIENCE.
- Shape their SOCIAL MEDIA VOICE in line with their BRANDING & VALUES.
- Have TWO-WAY CONVERSATIONS with customers - involve them in SURVEYS, QUESTIONNAIRES, INFORMATIVE CONTENT & COMPETITIONS).
- ANALYSE patterns of HOW PEOPLE INTERACT WITH EACH SOCIAL MEDIA PLATFORM (e.g demographics, time of day they usually visit, which content type is most popular & tone of voice used for each channel).
What should bank staff consider when interacting with customers through social media channels? (3)
- Am I truly answering the question with RELEVANT CONTENT?
- Would video or FAQ be better? Videos are better for the less technically confident when explaining how to set up online banking as FAQ wont show a step-by-step guide - Am I providing ADDITIONAL INFO that can help the cust make a BETTER DECISION / PLAN THEIR DAY?
- e.g. when a branch is closed, don’t just post a messaging saying it’s closed, instead include info on how long it will be closed for and include other ways to get in touch. - Am I sounding EMPATHETIC, SINCERE & CONFIDENT in my reply?
- audience isn’t just the person you are contacting, your response can be seen by all online. Rudeness can damage brand image.
Analytical tools (in house or third party e.g Twitter/Google analytics) can be used to held banks to understand channel preferences due to information gathered on… (2)
What does understanding channel preferences allow banks to do?
- Age
- Geographic location
Provide more streamlined services.
