Finacle Whiteboard

You wouldn’t argue it out, when I say using broad brushstrokes to segment a bank’s customer base is passé. While ‘segment of one’ is what the banking world is moving towards, at the least multiple criteria like homogeneity of behavior, aspiration, value, culture and habit – must necessarily be taken into consideration. My bank probably realized this a couple of years ago when a 20-something, tech-savy, 6 figure-salaried Gen Y customer stepped through its doors and demanded to access her account online. For such customers the mobile is almost an organic extension of their selves, while wi-fi, tweets and on-the-go acceptable lingos. They don’t have time to visit bank branches or wait patiently while the call-centre agent puts them on hold. In fact, they may not even opt to use the inevitable suggestion box at the branch or ATM. Instead their verdict is often plastered across blogs, tweets and discussions on the world wide web…often cluing in your other customers and competitors before you!

So, when someone from this Gen Y segment decides that online communities and chat rooms are the way to go for their financial requirements, banks must ensure that it is THEIR websites that this segment turns to. And, if this same someone decides that she’d rather borrow from individuals rather than a corporation, banks need to provide such forums and facilitate minimum-risk meetings. For this someone from Gen Y, if you are not online then you practically don’t exist. After browsing numerous banks’ websites, I am convinced that the time’s ripe for banks to now move beyond being mere financial executors to embrace the role of financial advisors. There is also this immense opportunity for banks to deepen their reach into these customers’ lives, penetrating those aspects of their routine that lie beyond the realms of traditional banking.

In fact some have already done it. One of the first US banks to launch a blog three years ago went one step further and launched a virtual gaming world that encourages high-school and college students to learn financial management. Another bank has created an online community dedicated to small businesses where members can network and promote products and services. These examples show that banks have recognized that social media is all about inclusion and making communication transparent, thereby engendering trust.

There’s a lesson here for us all…after all, what if the largest emerging global consumer segment really decided that life goes on with or without banks….

Related Read: Banking on Social Media

Posted by Arunnima B S at 03:03 AM | Permalink | Comments (2) | TrackBacks (0)

Through the flood of mails that I typically wade through everyday, I chanced upon a mail from my bank, reminding me that I had missed an installment payment. Gritting my teeth, I prepared mentally for a frustrating chat with the poorly informed call center executive, then downloading paper documents, making out a cheque, couriering the same… the list seemed so painfully long.

Reluctantly, I listened to the bank’s call center welcome my call with music, before my relationship manager, came on line. Surprise! Surprise! He tells me I can make the payment online, as they have rationalized their processes! What a relief!  Their processes certainly seem more customer friendly now, without compromising on the vigor of regulatory and security compliance.  This was process innovation that was not difficult for a customer – like me – to appreciate! I can also appreciate the effort they’ve possibly put into examining their as-is processes, its efficiency, throughput and productivity. These process innovations impact the agility of the organization, and reflect the culture and strategic intent of the organization. In this case – the customer – I – am at the heart of the bank’s strategic focus!

In my opinion, process innovations are vital for financial institutions, thanks to the constantly multiplying regulatory mandates and ever changing customer needs. There is a tremendous scope for banks in adopt and benefit from process-driven services. For this, banks must invest in setting up process offices, creating a repository of existing processes, establishing robust process audit procedures, identifying process innovation areas and driving innovation itself with energy.

Clearly, this is no light matter, especially for those players not yet conversant in the process game. It certainly requires real top management commitment, both on paper and in action…like it seems to be the case at my bank.

And yes, I paid my dues with just a click…besides contemplating on the merits of process innovation.

Posted by Rajendra Kumar K. L. at 08:06 AM | Permalink | Comments (2) | TrackBacks (0)