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Need for banks to adopt digital services for growth, competitive advantage

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IMAGE: Debola Osibogun, president/chairman of Council, CIBN, »


New technologies are changing the way customers and financial service providers interact, and introducing a new demand for how banking services are delivered.

In particular, those under 30 years of age have distinct preferences regarding financial services and digital technology.

According to Toluwaleke Adenmosun, managing director, Accenture Financial Services, convergent disruption, in the form of new market entrants, is a growing factor in the banking industry. The take-off of e-commerce and the emergence of fast-rising online outlets like Jumia and Konga is opening up new avenues for e-payments and data collection.

In view of this, it is imperative that banks take a fresh look at the digital customers with an understanding of the impact of not paying attention to them and the opportunity if they do, says Adenmosun, while delivering a keynote address on “Competitive Response to Digital Disruption in Banking,” at the 2014 Chartered Institute of Bankers Graduate Induction and Prize Awards Day in Lagos.

In this regard, a customer-driven blueprint for digital experience is imperative for competitiveness, she says.

Consequently, Accenture has identified five common themes that drive customer experiences that are noticed and valued. These five areas are not to be considered in isolation, they are complementary and they need to be integrated. They include Hyper-relevance ahead, Relationships at scale, Seamless experience, Inherently mobile, and Naturally social.

Customers are becoming dissatisfied with banking relationships that are merely transactional, rather than driven by advice or a broader relationship.

“By truly focusing on customer needs and integrating data, analytics and insight with product development and delivery, banks can transform not only the service proposition they offer to their customers but also the perceptions of their brand. That, in turn, will help drive overall loyalty. The adoption of digitally enabled services presents a unique opportunity for banks to deepen the relationship with their customers – going beyond daily banking to helping them better manage their financial lives on a daily basis,” she says.

To her, there is a clear imperative for fresh and action-oriented responses to changing consumer trends related to satisfaction, loyalty, experiences using digital technologies to deliver banking products and services more effectively.

Banks that meet this need by using digital to learn more about what their customers want, and delivering proactive advice and services through a consistent, omni-channel approach will give themselves a winning edge and get ahead of the trend. Such banks will have a clear opportunity to build stronger customer relationships and improve their overall performance.

To meet these challenges, banks are expected to advance on three fronts as listed by Adenmosun, which include to become truly omni-channel by seamlessly integrating the customer experience across in-branch, assisted, and digital interactions; extend the ecosystem by offering a greater range of services for customers, and offer digital personalised financial advice and counselling to customers to help them better manage their financial needs.

She reiterates that digital is redefining the future of banking. The opportunity for banks to continue to be relevant and position for growth and competitive advantage will be driven by relevant, higher valued propositions to customers in an omni-channel way.

While welcoming the graduates and their guest, Debola Osibogun, president/chairman of Council, CIBN, reminds the graduates of some of the things contained in the Code of Conduct in the Nigerian Banking Industry recently approved by the Bankers’ Committee, which she says they must endeavour to avoid if only to ensure that they become the heroes and heroines of their chosen profession.

Article Credit: Businessdayonline

Updated 5 Years ago

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Tags:     Toluwaleke Adenmosun     Jumia     Konga     Debola Osibogun