WeeklySA_AdminSHIFT: Services have to be digitised if companies are to thrive and meet customer expectations…
By Isaac Moledi
“Go digital or go dark,” that’s an advice from account manager at Liferay Greg Gatherer, who warns that companies that fail to heed this advice, irrespective of sector, run a great risk in the age of technological revolution.
“Consumers prioritise convenience and will often not see the need to step out of their houses to use a service that could be achieved with a few taps on their phone.” Added to this, he says, is a pandemic which has led to even further restrictions which has made the need to embrace digital ways of doing business even clearer.
Gatherer says it is crucial to recognize that digital transformation has become a necessity for a good business strategy. He explores some of the reasons why digital financial services need to be digitized. He also offers some tips to help with the transition to digital.
1. Meet evolving customer needs: With customers increasingly expecting convenience and on-demand services, going digital is essential if businesses are to thrive and meet expectations.
“While prospects or customers may have a positive opinion of your brand or company based on their first impressions or initial experiences, what really matters is the ability for your business to continue to stand out from the competition. With the rise of financial technology (fintech) startups and other financial organisations embracing digital transformation, a key differentiating factor is to meet customers where they are and continue to be present as an option for future services within the financial industry,” Gatherer explains.
2. Adapt to increasing regulatory complexities: With regulation of the financial services industry having undergone dramatic changes, Gatherer says what started as a response to the global financial crisis, bank failures, government bailouts and investor losses, has now increased compliance spending by 60%. These increasing regulatory complexities highlight the need for financial services companies to accelerate digitally in order to monitor risks and adapt more efficiently.
3. Meet requirements for cyber security and data privacy: With the recent implementation of the Protection of Personal Information Act (POPIA), customers now have greater control of their data. Gatherer says in order to stay ahead of the new requirements, it’s crucial for financial institutions to undergo digital transformation.
Tips for undergoing digital transformation
Gatherer offers the following few trends to get companies started in the digital transformation journey:
• Mobile banking – Mobile banking has fundamentally changed how banks and financial institutions function. It is only expected to grow further and it is an essential service to offer in 2021 and beyond
• Blockchain – According to Gatherer, this is the advancement that companies will be talking about in years to come. “Not many companies have adapted to blockchain technology, but it is gaining momentum and is expected to play a crucial role in digital payments, loan processing and other processes.”
• Big data – Big data can be utilised to serve customers by curating services based on the insights gathered. Financial firms can use machine learning and advanced analytics to process data and generate insights .
• Automated wealth management – According to Gatherer, these are essentially wealth ‘bots’.
“This AI (artificial insemination) uses algorithms to calculate ideal investments, loans, interest rates, etc..
• Financial technology (fintech) – He says financial technology has been present longer than we realise, with ATM and credit cards falling under this classification. However, this has now expanded to include tools such as customer service chatbots, expenditure trackers and online banking tools.
According to Gatherer, customer experience has a major impact on how well financial services are received. While it can be influenced by a range of factors including colour palettes and ease of use, customer experience boils down to two things: accessibility and userfriendliness, he says.
He advices businesses to ask themselves these questions:
• Is my service easy to find?
• Is it an option for people making transactions in popular marketplaces?
• Are the features of the service easy to navigate through?
• Is the interface pleasing to look at?
The answers to these questions, he says, will determine whether or not your financial services are meeting consumers’ expectations for customer experience.
Responding to why is digital transformation crucial for the financial services industry, Gatherer says: “With the increasing levels of competition in the financial services industry, it’s difficult to imagine a financial landscape without it going digital.
The number of fintech companies has continued to rise faster than ever, regulatory complexity is at an all-time high, and businesses are constantly being pushed to innovate digitally.
‘’Despite its share of challenges, undergoing digital transformation will play a major role in your business strategy and ensure that you’re future-proofing your business to ensure long-term success.”
