At the recently held Digital Banking Day event organized by Kris FinSoft in Makati, I gave a presentation to the assembled audience on how Lucep enables banks to go digital in a way that is customer-centric, rather than an upgrade of technology.
Other speakers at the event included former Finance Secretary Dr. Robert de Ocampo, OBE, and Lee Volante of Temenos, among others.
“At Kris FinSoft, we take pride in being one of the early players in this field, in the Philippines,” said Krishan Grover, CEO of Kris FinSoft. “We take immense pleasure in working alongside Lucep to provide digital banking solutions, that allows banks to remain competitive and ahead of their peers!”
Lucep is likewise very honoured to work alongside Kris FinSoft.
|Zal Dastur, Founder and COO, Lucep||Dr. Robert de Ocampo, OBE, Chairman, Veterans Bank|
This post is being published as a followup to the presentation at the event. Specifically, I want to highlight the enormous amount of reorganization and effort that goes into a bank’s digital and branch transformation events.
To this end, I want to categorize this article into the three T’s of digital banking:
Training – for employees
Transactions – for customers
Transformation – of your banking process
We’ll come to part about enabling digital banking services, but does your bank have a culture of digital? That’s the first thing required if you want to call yourself a digital bank, or at least one that provides banking services on digital channels.
In my presentation, I included a post published Finanser.com blogger Chris Skinner, author of Digital Banker and the most recent Human Digital. Chris has a litmus test with three components – access to your digital core, culture of digital, and customer-centric transformation.
In this post, I’d like to focus on the “culture of digital” part. Allow me to reference another post published on LinkedIn by Daniel Li, Head of API Partnerships, DBS Bank. Daniel points out that DBS is spending $20 million to transform 10,000 of their employees into digital bankers.
The four qualities he associates with being a digital banker are – an experienced business leader, versant technologist, visionary strategist, and a versatile problem solver.
Let’s go back to the DBS investment on creating digital bankers out of employees. This program allows DBS employees to learn and pick up new skills at their own convenience. The AI training technology is providing customized training sessions for each employee, so they can do it as per their own level of knowledge and availability of time.
It’s all geared towards a culture of digital that will ensure the bank, it’s processes, people and customers are all steeped in digital, instead of just offering digital banking services.
The second T of digital banking is transactions. If you ask any banker what is digital banking, the most likely answer you’ll get is that they allow their customers to transact using digital channels – phone banking, net banking, mobile app banking, SMS banking, and maybe even social banking on Facebook.
But that’s just your most basic offering. A truly digital bank is one that provides access to your digital core by opening up your application programming interface (API) to third-party fintech providers. This open banking API can then be used by app developers (and the bank) to develop all kinds of apps that provide value-added services and innovative banking apps to customers. This is what truly drives the move towards digital banking.
The third T is transformation of your branches into one of the touchpoints along the customer journey of interaction with the bank. This makes the branch useful in certain cases, as opposed to being a cost center with customers or transactions.
The best use case for branch transformation is to turn the branch into an advisory hub that caters to the specific interests of banking customers who are in the vicinity of that branch. Omnichannel engagement is where a new customer finds your bank website, fills up a product form or calls you, and then comes down to the bank branch in person to discuss it further. This buyer journey takes place smoothly, with the interaction in each channel as a continuation of the conversation from the previous one.
Author: Zal Dastur is the Co-founder and COO at Lucep. Lucep provides customer engagement technology solutions for the world’s largest banks, insurance companies, government agencies and automotive manufacturers and dealers.
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