The present situation of 2021 has certainly left its mark on the importance of digitalization in business and consumer behavior and expectations more than ever before. It’s has utterly changed the whole customer behavior and expectations towards the leading financial brands, forcing most FIs to re-innovate and revamp outdated ways of doing things and thereby operating more smoothly and efficiently. Why? Simply because it has made a lot of things much easier and comfortable to do for the end consumer. Let’s take a quick look at how this will affect all industries including banking and finance.
Ever since the global economic crisis, many banking sectors have been struggling with reduced business and revenue. Banks are no longer the bulwarks they used to be. At the same time, even reputable banks have been unable to convince their customers to continue spending on the kind of financial services that they used to offer before the global meltdown. Hence, customer expectations have skyrocketed in all areas of banking from customer-friendly services to financial services that are accessible anytime and anywhere. This is what has accelerated the importance of digitalization in finance and financial services for all types of financial services companies and banks.
One can easily understand why banks and other financial services organizations have implemented online banking services. They have realized that by simply making their existing services more convenient and easy-to-use, they can attract more customers to avail of their services. Online services for instance, help in faster banking and financial transactions. Faster means less waiting time, which results into higher conversions of customers’ accounts to actual bank accounts. It also means that more customers will be able to spend their money faster which will in turn, boost the revenue of a bank tremendously.
However, it is not only convenience that increases the value of online services. In the age of the internet, customer service has also become important and has become a driving force in business and in the world as a whole. Customers expect to get high quality services from financial services providers and banks online. Hence, they demand more flexibility and ease of use when dealing with online services. Digitalization is a key that opens the doors of possibilities for all types of online services providers to make them more efficient and effective.
However, the importance of digitalization in financial services cannot be understood merely through the convenience it brings to the services. The concept of “letting go” also has a part to play. Technology has changed a lot over the years. The process of digitization has made things easier and simpler. There is also the aspect of security to consider. With the advent of technology and the impact of the internet, financial services now need to adhere to certain security measures in order to ensure the safety of clients’ information.
The security issue is mostly tackled by banks and financial institutions through encryption technology. Encryption is one of the easiest ways to secure information. It is usually done with the help of passwords or codes provided by clients. This way, outsiders are prevented from accessing customer information. Apart from encryption, another advantage brought about by digitization is the fact that customers can now access and use their accounts any time they want, anywhere they may be.
The importance of digitalization is also felt in the form of online banking. Online banking helps customers manage their accounts more efficiently. Banking transactions can now be done from any location and at any time. Further, the impact of online banking has made customers happier because they no longer have to visit a bank branch or checkbook to do their banking. They can now simply open an account using their debit or credit cards and use the money that they have deposited.
In today’s world, convenience and efficiency are synonymous. The impact of online banking and other financial services brought about by digitization has brought about a revolution in the way people handle their financial lives. These days, people are happier as well as more satisfied with their financial decisions. This is largely because they are able to get all their work done from anywhere they want. This has ensured better customer service and more services at a lower cost.