2. DIGITAL BANKING
• DIGITAL BANKING IS THE DIGITIZATION (OR MOVING ONLINE) OF ALL THE
TRADITIONAL BANKING ACTIVITIES AND PROGRAMS SERVICES THAT
WERE HISTORICALLY WERE ONLY AVAILABLE TO CUSTOMERS WHEN
PHYSICALLY INSIDE OF A BANK BRANCH. THIS INCLUDES ACTIVITIES
LIKE
• MONEY DEPOSITS, WITHDRAWALS, AND TRANSFERS
• CHECKING/SAVING ACCOUNT MANAGEMENT
• APPLYING FOR FINANCIAL PRODUCTS
• LOAN MANAGEMENT
• BILL PAY
• ACCOUNT SERVICES
3. DIFFERENCE BETWEEN ONLINE AND
DIGITAL BANKING:
• FOR THE MOST PART, THESE TWO WORDS ARE SYNONYMS. BUT, WE
DEFINE ONLINE BANKING A BIT MORE NARROWLY THAN DIGITAL
BANKING: ONLINE BANKING PRIMARILY FOCUSES ON REMOTE DEPOSITS,
MONEY TRANSFERS, BILL PAY AND BASIC ONLINE MANAGEMENT OF
ACCOUNTS. OTHER SYNONYMS FOR ONLINE BANKING INCLUDE
INTERNET BANKING, VIRTUAL BANKING AND E-BANKING.
• SO, ONLINE BANKING FOCUSES ON DIGITIZING THE “CORE” ASPECTS OF
BANKING, BUT DIGITAL BANKING ENCOMPASSES DIGITIZING EVERY
PROGRAM AND ACTIVITY UNDERTAKEN BY FINANCIAL INSTITUTIONS AND
THEIR CUSTOMERS.
4. ROLE OF BUSINESS ANALYTICS IN
DIGITAL BANKING
• ANALYTICS CAN HELP BANKS TO BECOME SMARTER AND EFFICIENT. BY
COMBINING STRUCTURED AND UNSTRUCTURED DATA FROM THEIR USERS,
ALONG WITH DATA FILTERING AND MINING TECHNIQUES, ANALYTICS CAN
PROVIDE A LOT OF VALUABLE INFORMATION TO THE BANKS. IT CAN HELP
TO DETERMINE AND PREDICT CUSTOMER BEHAVIOUR OR TRENDS AND
ALSO HELP IN CUSTOMISING BUSINESS MODELS TO PROVIDE A MORE
PERSONALISED SOLUTION OR EXPERIENCE FOR THE END CUSTOMER.
•
• RESEARCH SHOWS THAT 60% OF THE NORTH AMERICAN FINANCIAL
INSTITUTES BELIEVE BIG DATA ANALYTICS DRIVES COMPETITIVE ADVANTAGE.
OVER 90% BELIEVE BIG DATA INITIATIVES DETERMINE WINNERS OF THE
FUTURE.
• ALTHOUGH THE PRIMARY FOCUS OF BANKS IS ON CUSTOMER
ANALYTICS, THE BANKING INDUSTRY ALSO RELIES ON BUSINESS
5. FEW AREAS WHERE BUSINESS ANALYTICS
ACCELERATE DIGITAL BANKING INITIATIVES:
• DIGITAL MARKETING:
THE CONSUMER SEGMENT WHICH THE BANKING INDUSTRY CATERS IS GENERALLY
BECOMING MORE TECHNOLOGICALLY AND DIGITALLY-SAVVY. MOST OF THE BANKS HAVE EMBRACED
ADVANCED ANALYTICS TECHNIQUES TO GATHER INFORMATION RELATED TO THEIR CUSTOMERS VIA
MULTIPLE DIGITAL CHANNELS WHICH PRIMARILY INCLUDES THE INTERNET, BUT ALSO EXTENDS TO
DEVICES LIKE MOBILE PHONES, DISPLAY ADVERTISING, OR ANY OTHER DIGITAL MEDIUM. THIS
INFORMATION IS LATER USED TO STRATEGIES THE DIRECTIONS IN WHICH BANKS NEED TO INVEST IN
ORDER TO INCREASE CUSTOMER SATISFACTION AND EXPERIENCE. THE MAJOR FOCUS OF THE BANKS
IS TO PROVIDE MORE AND MORE INNOVATIVE BANKING FEATURES VIA BANKING APPS OR WEBSITES,
WHICH THE CUSTOMERS CAN ACCESS WITH EASE FROM ANYWHERE WITHOUT THE NEED TO PHYSICALLY
VISIT THE BANK FOR ANY TRANSACTION.
CUSTOMER ENGAGEMENT:
WITH THE DETAILED STUDY OF CUSTOMER DATA, BANKS USE IT TO THEIR ADVANTAGE
BY COMING UP WITH MULTIPLE SALES AND MARKETING STRATEGIES. THIS HELPS THEM TO
UNDERSTAND WHAT THE END CUSTOMERS ARE ACTUALLY LOOKING FOR AND USE A
PROACTIVE APPROACH RATHER THAN A REACTIVE ONE TO MEET THE CUSTOMERS' NEEDS.
6. • RISK MANAGEMENT:
THE BANKING INDUSTRY IS ALWAYS AT A HIGH RISK CONSIDERING THE FACT THAT IT PROVIDES
MONETARY LOANS TO THE GENERAL PUBLIC. AT THE SAME TIME, BANKING INSTITUTIONS ALSO NEED TO
MAKE CORRECT STRATEGIC INVESTMENTS. IN SUCH SCENARIOS, A THOROUGH EVALUATION IS A KEY
ASPECT WHICH NEEDS TO BE TAKEN INTO CONSIDERATION BEFORE MAKING ANY DECISIONS. BUSINESS
ANALYTICS PROVIDES IN-DEPTH INSIGHTS TO THE BANK’S IT SYSTEMS, CUSTOMER DATA, FINANCIAL
TRANSACTIONS, AND ENVIRONMENTS TO AVOID CERTAIN RISKS.
CREDIT TRACKING AND LOYALTY:
BUSINESS ANALYTICS PROVIDES BANKS WITH THE MOST UPDATED INFORMATION ON
THEIR CUSTOMERS’ EARNINGS, SPENDING TRENDS, AND PROFITABILITY. IT PROVIDES INFORMATION ON
CUSTOMER LOYALTY. BANKS UTILISE THIS INFORMATION FOR RETAINING HIGH-VALUE AND VIP
CUSTOMERS.
INTERNAL PERFORMANCE TRACKING:
BANKS ARE USING ANALYTICAL DATA TO MEASURE EMPLOYEE AND OVERALL BUSINESS
PERFORMANCE. SUCH DATA IS COLLATED ACROSS SEVERAL DEPARTMENTS, BRANCHES, AND LOCATIONS.
THIS HELPS IN SETTING ORGANISATIONAL AND EMPLOYEE LEVEL GOALS AND IDENTIFY POTENTIAL
AREAS FOR TRAINING AND R&D.
7. • DATA AND ANALYTICS ARE FAST BECOMING A HUGE DIFFERENTIATOR
FOR THE BANKS. IT IS HELPING THEM DRIVE BUSINESS GROWTH, BETTER
MONITOR THE RISK BEHAVIORS, AND TO REDUCE COSTS ACROSS THE
BUSINESS.
