March 2019

Virtual banking suited to large and small banks

Is it profitable for small banks to invest in virtual branches?
Virtual banking is nothing new, but it is certainly a total revolution that we have been watching for some time and in which we take part. This applies not only to customers but also to the industry that have decided to step on a new degree of digitalization. At the same time we are departing from the traditional banking methods which are already obsolete and are not as comfortable as in digital banking. Did you know that lots of customers believe that virtual banking is a basic standard and they choose their future bank based on how it is developed?

Have you ever tought about how digitalization can change the level of banking? Let’s face it. No matter how big the bank is, it is always important to meet the standards of every customer.

VIRTUAL BANKING IN A SMALL BANK

Digitalization in a smaller banks can for sure improve customer experience and build their loyalty. Thanks to this, interest is significantly growing, especially from digital natives, because younger, more digitally-driven generations of customers are taking over and that is totally natural process. But as we know not everyone is a fan of getting digitalized and virtual banking also faces its strong opponents. They will get a clear message, saying: you can be totally sure that experts with a huge commitment will support step by step in completing complicated forms and will answer every question. Doesn’t it sound encouragingly? Give it a try and you will be convinced.

Let’s also mention people who are socially excluded, who are often withdrawn and use small branches and institutions. These people need remote access to banking more than anyone. And certainly they will be happy to take advantage of such opportunities.

Virtual branch can also provide new technological tools which are not available in a classic banking branches. According to “Digital Banking Expert Survey” organized by GFT Technologies in the coming years 5% of banks will give up on stationary branches and 23% is thinking about possibility of creation of fully self-service banking branches. That means boosting flexibility and change of the work dimension: short working hours can be changed to a virtual face-to-face communication between satisfied employee and satisfied client. Digitalization can help small banks, they wouldn’t only fight with their bigger “opponents” but also work for a much higher reputation.

BIG BANKS AND VIRTUAL BANKING

What are the benefits of having a virtual branch in a large bank or financial institution? As there is a large number of customers in the big banks, virtual branch can increase their personalization. It is really important to expand “customer knowledge” base. The more we know, the more we can adjust the offer. So that clients, due to the services and knowledge of the assistants, will be more willing to use the services provided by your bank. Digitalization provide better customer attraction and improve nearly 90% of customer satisfaction. Do not forget to ensure safety. It is important to provide customers with the highest level of security of your services, which can sometimes be difficult to provide, for example, through a contact center. Futhermore, digitalization will reduce costs and contribute development of new sources of income. What’s more, investing in digital channels means that a large bank will be perceived as a pioneer on a modern banking market.

things to know about virtual branch 

1. Human touch

There has been a long prejudice that virtual banking means less attention to the clients. Nothing could be further from the truth. The current development allows us to meet even very high requirements of each customer. But technology is just a means to an end. Well-designed and carefully thought-out virtual branch technology is humanizing interactions with the banks, being a combination of technology and human work. More processes can be carried out thanks to an advanced tool for communication and collaboration between client and advisor. Current solutions are open to the client when he needs it and he does not have to move from his own home. Virtual banks are open for business anywhere there is an internet connection. Everything goes fast, simple and intuitive thanks to this phygital experience.

2. Social media module  

As we talk about blending digital experiences with physical ones, LiveBank went one step further and provide Facebook Messenger Communication module. This LiveBank’s feature utilize the power of this popular messaging tool for the banking industry. The customer of both large and small banks can use it any time they want, directly from their bank’s fanpage. By that, modern banking can become even more effective and customer-friendly no matter how developed your bank is. You can read more about it in our post.

3. Preserve resources 

Furthermore virtual banking is environmentally friendly. Banking (no matter how big) requires tons of paperwork If you need more information about something, you don’t have to drive across the whole town. Sometimes it happens that a small bank is already closed or you have to wait in a long queue in a big bank. With a virtual branch there is no need to worry about that. All you have to do is open the application and ask qualified consultant or if you’ve already had this conversation scroll up and read everything once again. That means: reducing vehicle traffic, tons of paper and saving your time and as we all know time is money.

4. Safety first

Suppliers of virtual branches LiveBank has been checked and validated by multiple audits conducted by clients. HTML-5, HTTPS, SSL/TLS, AES with HMAC are just some of the technologies that are used at LiveBank. During the onboarding process (eKYC), ID and face photos are compared with the use of voice and facial biometry. Next, the document is OCRed and personal details are checked in internal and external databases to prevent frauds. LiveBank can deliver or be integrated with any biometric system available in the bank such as face, voice or fingerprint – all to keep the customer safe. Also, it can be enhanced with emotion detection technology, where the system reads customer behavior and facial expression. That means again an opportunity to gain new customers by using this type of digitalizated system and keep all the data safe and secured.

Digitalization can increase your banking and put it on a higher level. Quality of your services will help you to gain new clients. But not only, let’s remember that this type of changes have also impact on the provided services. They will low banking costs, reduce time of customer service and what is more will help to avoid long queues and tons of paperwork. Another benefit is easy availability – customer has an access everywhere and any time they want. The only requirement is access to the Internet.

Higher and higher level of technology has a lot to offer. Big banks- thanks to digitalization will significantly support cooperation with the client, and a small ones will develop them to a high level in which both sides will be very satisfied. It is only your decision, if you want to improve your system or stay behind. “According to research from the Boston Consulting Group, less than half (43%) confess they don’t even have a digital strategy. And an astonishing one-in-five banking execs consider their bank or credit union ‘market leading’ when it comes to digital.” So don’t waste your money and more important – customers and start your digital path. It is our future.

 

https://thefinancialbrand.com/71733/four-pillars-of-digital-transformation-banking-strategy/

https://biznes.newseria.pl/news/bank-przyszlosci-bedzie,p1187734742

Any questions?

Need quick hints? Feel free to contact us

Piotr Skrabski
Piotr Skrabski
General Manager +48 518 667 591
Ailleron Company

Życzkowskiego 20 Street

Building Avia, 1st floor

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