Effective digitalisation in financial institutions

In an era defined by rapid digitalisation and shifting customer expectations, banking is at an inflection point. The pandemic has spurred this transformation, notably in the B2B financial sector, where traditional interactions are quickly being replaced by digital interfaces, sparking trends in digital banking, online research, and increased mobile usage.

An IDC study suggests that 74% of consumer payments will be managed by non-traditional providers by 2030. Individuals increasingly expect financial services, especially payments, to be available in their frequented digital spaces. This trend is ripe for disruption by digital-first neobanks, which don’t need to draw customers from, or compete against, incumbents to succeed. This is especially true in Southeast Asia, where smartphone users outnumber bank account holders. This penetration is facilitating digitalisation, offering a substantial market for new entrants among the unbanked.

Financial organisations are riding this digital wave by redefining customer experiences and leveraging digital channels for growth. The urgency of this shift is underscored by changing decision-maker demographics and evolving consumer expectations. According to Adobe and PK Global’s 2020 “Tech Buyers Generational Insights Research,” millennials and Gen Z, the main adopters of fintech, now hold 55% of director roles and above. Raised in the digital era, their preference for online interactions and content-rich experiences over product specifics signals a significant shift in the financial landscape.

Driving growth through digital transformation and personalisation

In today’s digital age, enterprises need a robust suite of capabilities that include elements such as cross-channel personalisation, meaningful content creation, comprehensive measurement and attribution, as well as proficient journey management. A significant number of financial service institutions (FSIs) are adopting the strategic approach of account-based marketing (ABM). This method allows these institutions to identify and actively engage with high-potential opportunities and high-value accounts. By delivering experiences that resonate with their targeted audience, they can expedite revenue generation, making their growth not only more efficient but also more impactful

One example of the potential of digital transformation in the banking sector is Vietnam Technological and Commercial Joint Stock Bank (Techcombank). The bank recently marked a significant milestone by becoming the first in the country to launch an end-to-end customer experience technology platform. Responding to the growing digital-first mindset of the Vietnamese consumer market, Techcombank aims to deliver hyper-personalised banking experiences that seamlessly integrate both offline and digital touchpoints. It also collects relevant data to refine and enhance future customer interactions and experiences. This new marketing technology is expected to support the bank’s growth tenfold in the coming years.

Redefine the future of financial services

Consumers are increasingly turning to digital channels for financial needs, leading FSIs to adapt and innovate. Personalisation across channels is now crucial for customer engagement, according to an Adobe Commerce study. However, this involves more than just integrating technology into existing processes. It requires coordinated engagement across digital and in-person channels to create seamless experiences, fostering loyalty and ensuring return customer engagement.

Content that resonates with the target audience is also essential. FSIs need to use past successful strategies to optimise digital touchpoints, ensuring timeliness and relevance. This demands a deep understanding of consumers, allowing the crafting of content strategies tailored to their needs.

Moreover, a successful digital strategy requires robust measurement and analysis of marketing impact. FSIs must consistently track the progress of digital initiatives, attributing revenue to specific marketing touchpoints to refine their strategies.

The same study also emphasises that consumers expect brands to understand their needs, whether from a B2C or B2B perspective. Therefore, FSIs must create a personalised end-to-end digital journey for these digitally savvy consumers. As the digital landscape evolves, successful financial service institutions must include personalisation, impactful content, measurable marketing, and comprehensive experience design in their approach.

Embracing the digital future

Ultimately, the COVID-19 pandemic has fast-tracked the digital revolution in financial services. However, it has also highlighted the value of hybrid experiences that combine digital convenience with the trust-building personal touch of physical channels. Despite the quick pivot towards digital, customers are signalling a preference for a blend of both worlds. This underlines the need for FSIs to not only embrace digital technology but to integrate it seamlessly with traditional channels. Providing a comprehensive, flexible customer journey that meets evolving expectations is key to thriving in the transformed landscape of financial services.