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March 2020

The virtual alternative for traditional banks

Technology causes pivotal changes in the banking industry. Digitization process has already changed the nature of banking itself. What’s more, as we observe, customer behavior is supportive of virtual banking. Current ‘stay at home’ status keeps people away from public places, so the best way to adjust to those restrictions while having constant access to the banking is to move the services to the virtual channels.

Transformational efforts taken by financial institutions should concern the development of the whole organizational culture according to the tendencies of digital banking. What is more, this transformation requires rapid changes in thinking and planning practices. However, creating a virtual branch of services can be perceived as a far-sighted investment. That is why we need to know where the organization is heading and to stay on the course.

Banks facing coronavirus impact

In light of recent events, many schools and businesses have been closed and soon banks may share the same fate with them. However, the need for banking services won’t cease, and customers will look for alternative solutions to run their finances without disturbances. As people adjust to these extraordinary conditions, banks must do the same in order to keep in operation. Coronavirus has already impacted the financial industry and its effects will be more and more overwhelming. However, banks can prepare themselves for this scenario. Of course, they cannot eliminate all the consequences of the situation entirely, but they still can cut their losses using online banking technologies.

Demand for virtual banking is constantly growing, as we can see from an increasing number of consumers deciding to use this particular banking channel. Our partners also experienced a rapid increase in online banking customer flow, which indicates that this type of services is necessary and in demand.

Virtual banking: a field of opportunities

In 2018, 67% of customers around the world were active on digital platforms and accessed their bank accounts through digital channels (Oracle: The New Digital Demand in Retail Banking 2018). Given the need for consumer mobility today, one can be sure that this potential is to grow. Modern customers perceive ‘convenience’ as one of the most important aspects of their lives. This also applies to banking. Still, virtual customers expect to find seamless, professional and virtual service at every stage of the financial lifecycle – from opening the bank account to managing their finances and invest.

Virtual banking transforms traditional services into an intelligent conversational banking platform. Customers don’t have to visit a specific place to request financial assistance – they can have it in the place of their choice. Working hours aren’t a constraint anymore, as virtual banking provides people with unlimited access to their accounts and services. Computers, smartphones, and tablets are becoming essential tools for customer-bank communication. Thus, customers gain unlimited access to banking and an individual approach through secure and popular channels such as video, chat or audio. A combination of those two factors can help them achieve a much higher level of satisfaction with banking services.

It’s also worth remembering that customers can easily switch to an alternative bank that better fits their requirements. Therefore, for the banks that didn’t have the luxury of being born digital, it’s high time to make an adjustment and incorporate digital channels to their day-to-day services as a way to attract digital customers.

Building customer engagement

As we mentioned in the article on 2020 banking trends, personalization and connected experiences gain customers’ loyalty and create their positive attitude. People see their needs as unique and apply the same expectations to financial institutions. At the same time, their focus on remote channels confirms their need for the personal touch and the virtual branch can easily provide it.

Active engagement of both the bank and customers is the foundation of a strong relationship. Therefore, remote service shouldn’t be perceived as the one that cools down relations, it’s quite the opposite. That synergy of people and technology shortens the distance between the customer and company, providing a personal touch and made-to-measure services. Greater customer engagement can have a positive impact on higher annual revenues and costs optimization. Digital transformation is widely recognized as a priority. However, many banks still don’t realize the connection between digitization and customer retention.

Remote customer acquisition

Omnichannel access, personalization and seamless communication process combined can be perceived as key factors having a huge impact on success in the banking industry. Nevertheless, if financial products work perfectly while the onboarding process is tedious and longsome, the efforts are all in vain.

Onboarding is the very first contact between the customer and the financial institution. It defines the relationship that customers will have with an organization, helping to build loyalty and trust. It is also the basis of any further collaboration. Thus, it should have intuitive navigation, avoid unnecessary activities and provide reliable online authentication (supported by the eKYC process enabling customer recognition and preventing potential risks).

The digital era we live in creates limitless opportunities and methods for customer acquisition. Ailleron, as a provider of technological solutions, has created a product that meets all the above requirements. LiveBank enables an entirely remote acquisition of new customers. They can be easily authenticated and verified remotely, and they can access new financial products without visiting a bank branch. Video calls enable face-to-face interaction with the prospect, taking pictures and additionally checking the presented ID. This process consists of biometrics comparison and remote operation authorization with high-security standards.

The banks that already use the eKYC onboarding process can see significant improvements in:

  • acquiring new customers,
  • providing high security of sensitive data due to biometric tools,
  • increasingly positive brand perception.

Currently, while banks’ offers do not visibly differ, it is worth taking a big step towards transformation in order to have a strong competitive advantage and attract the desired group of digital-savvy customers. Focus on a partial implementation of digital solutions is not enough, especially when digital-born banks are growing stronger. Once a change is embraced, the whole organization must focus on the same priorities – enhancing customer experience. The core of virtual banking is to build a bridge between internet banking and human contact and to deliver banking experiences to customers when and where they need it.

Our solution allows to change the approach and creates new opportunities for those banks, so they are ready to switch to an online channel. That’s why we’ve prepared a special Pilot project, which allows LiveBank deployment in only 10 days. We know that effective solutions are needed right now.

 

Check out the LiveBank Pilot

Any questions?

Need quick hints? Feel free to contact us

Piotr Skrabski

Piotr Skrabski

General Manager +48 518 667 591

    Ailleron Company

    43B Jana Pawła II Avenue

    Podium Park II Building

    31-864 Cracow

    Did you know?

    A virtual branch will work perfectly wherever efficient service is crucial

    Insurance
    companies
    Financial
    consulting
    Investment
    fund
    Leasing
    companies
    Brokerage
    house