Rethinking BFSI Strategies for the Digital-First Generation
In the past three years, the Banking, Financial Services, and Insurance (BFSI) industry has undergone a seismic transformation in response to evolving customer preferences. The emergence of Neo banks and Non-Banking Financial Companies (NBFCs) offering digital lending through mobile apps has not only reshaped industry dynamics but also established a new paradigm for contemporary banking practices.
This transformation has been notably fueled by the rising demand from modern-age customers, particularly the tech-savvy Gen-Z and Millennials, who now envision seamless, digital banking experiences literally at their fingertips.
As our world becomes increasingly digital-centric, the traditional methods employed by banking and financial institutions may fall short in meeting the expectations of this discerning demographic. The looming challenge for BFSI stakeholders lies not solely in the adoption of cutting-edge technologies but in effectively aligning their strategies with the evolving expectations of their customers. Failure to bridge this gap may pave the way for CX Nightmares, jeopardizing the industry’s ability to thrive in the imminent future.
CX Challenges in the BFSI Landscape
1. Manual and Time-Consuming Processes
- Lengthy paperwork and manual documentation for loan applications.
- Slow and inefficient approval processes for credit or loan requests.
- In-person visits required for most banking transactions.
2. Limited Access to Information
- Lack of real-time access to account information without visiting a branch.
- Difficulty in obtaining timely updates on account balances, transactions, or interest rates.
- Inconvenient communication channels leading to delays in resolving queries.
3. Branch Dependency
- Over-reliance on physical branches for various banking services.
- Limited availability of ATMs, leading to challenges in accessing funds.
- Inability to perform certain transactions without visiting a branch.
4. Communication Challenges
- Lack of effective communication channels for customer inquiries or issue resolution.
- Inconsistent and delayed notifications about account activities or policy changes.
- Limited availability of customer support outside of regular business hours.
5. In-Person Verification Hassles
- Requirement for physical presence for account opening and verification processes.
- Inconvenience caused by the need for face-to-face interactions for various banking tasks.
- Challenges for customers who are geographically distant from the nearest branch.
6. Limited Customer Engagement:
- Lack of personalized banking experiences due to manual processes.
- Inability to offer tailored financial solutions without leveraging digital data.
- Limited use of customer data for relationship-building and personalized services.
7. Technology Gaps
- Outdated banking systems leading to inefficiencies.
- Limited integration of technology for improving customer experiences.
- Challenges in adapting to changing customer expectations without digital solutions.
While these CX nightmares cast shadows, they also present opportunities for growth and improvement. The BFSI industry can proactively address these challenges by investing in cutting-edge BPMS solutions like ServoStreams, refining processes, and placing the customer at the center of every strategic decision.
Addressing these issues in traditional banking involves streamlining manual processes, improving in-person and phone-based customer service, and enhancing transparency. Although digital lending solutions can provide significant advantages, traditional banks can still prioritize customer-centric approaches and operational efficiencies to mitigate CX nightmares.
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