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How Traditional Banks Can Leverage Technology to Stay Ahead of the Fintech

spinhigh profile image Avi ・3 min read

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The sustainability of traditional banks in the presence of numerous fintech giants has long been a subject of debate. Moreover, with the COVID-19 crisis at its brim, banks have observed a considerable decline in physical visits to bank branches. This has enabled a number of banks to embrace complete digitalization as a recovery measure and as a mandatory market practice to attain an edge over the competition. Still, a number of traditional banks struggle to retain their customers due to bad app experiences or the complete absence of a digital platform. Traditional banks need highly refined tech-driven ways to keep their customers hooked. A blend of technological, consumer-centric services, and lowered operational costs, will help banks in achieving their annual targets.

In this blog, we will have a look at some technological use cases that traditional banks can leverage to make a strong comeback in the market.

AI-based Chatbots

AI-based chatbots have long proved their effectiveness in handling customer requests and complaints. Lowering dependencies on human customer executives will not only help banks to streamline their services but also help them lower operational costs to a great extent.
Conversational banking can fuel the digital enablement of tasks like adding a payee, paying bills, and Peer-to-Peer transfers. A multi-channel, multi-lingual integration in a mobile app with contactless payment capabilities will prove to be a definite growth driver for traditional banks.

24/7 Servicing

Another major advantage of a digital mobile channel is 24/7 availability for the users. From the viewpoint of millennials, requests like password reset, making international payments is something to be done with just a few taps on the phone. In fact, modern banks embracing instant digital banking are already observing higher customer satisfaction rates.

Revamp the Legacy Systems

Legacy systems of banks cost them a lot of money. Retaining customers and service provisioning is indeed an expensive endeavor without a contemporary technological solution. Banks need to be proactive and resilient to the changing market’s expectations and reduce risks and liabilities linked to offline operational models. Mobile technology and a dedicated and secure app can transform a bank’s operational efficiency by doing away with infrastructure investments, human resources, and other hidden costs of offline operations.

Being data-driven to drive change

Technology possesses the potential to make constructive use of data that can be collected through online channels and digital platforms. This data can be used to find insightful information and analytics about customers like what they are most likely to buy at a certain time. Which services do they tend to prefer? This data can also be used to project details regarding supply and demand and align services to become lean and precise. Banks can tap the data related to resources that customers look up, and send survey alerts to gather more details regarding users’ financial status and objectives and expectations they have from a bank. Banks can also make personalized product recommendations based on that gathered data.

It is critical for the banking industry to adopt the agile and dynamic model of operation with a robust technological backup that will not only enable it to respond to COVID-19 like crises but also operate with limited resources. The competitive landscape of the banking sector is likely to intensify challenges for survival and growth. It's time for banks to buckle up and respond with future proof banking solutions in association with the right technology partners. Get in touch with one of the best mobile app developers in the business to begin your digital transformation journey.

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