IBS Journal February 2016


channel connectivity. And that leads us to the other aspect of digitisation: any bank that is serious about digital technology would need to embrace the emergence of the new beast called data. Decision making processes no longer are driven by heuristics. Advanced data and analytics is in. Historically, decisions on customer


segmentation, product off ering, campaigns and sales were driven by demographic profi ling and portfolio level analysis. The advent of predictive analytics and big data has taken the science of data and its management to the next level. The foundation of predictive analytics


is in the ability to generate thousands of variables from the static and transactional data that is available with the bank, that help profi le the customer behaviour and build statistical correlation that helps pre- dict the way forward and the best course of action. While loyalty programs gave an


opportunity to tap into transaction data that was outside the bank, the advent of social media and the emergence of big data has brought in a plethora of new possibilities. Forward looking banks have created organisations that are increasingly more conscious of this.


3. Nurturing the ‘next-gen’ organisation No matter how glamorous the face of the bank is, the real digital transformation happens only when the bank as a whole gets to become more digital-aware. And


36 © IBS Intelligence 2016 www.ibsintelligence.com


this means more than just training and awareness. It is about a real cultural shift across the organisation. When one of my clients was looking to


drive traffi c to the newly revamped inter- net banking channel, we had a very simple solution that fi xed it. We had the customer service representatives and relationship managers to invite the customers visiting the branches to actually login to the inter- net banking portal on a tablet, even while they were waiting their turn at the teller. The results were astounding. Most


customers found the experience of being trained to use the channel so rewarding, and the non-cash transactions volumes moved very soon into the newly launched internet channel, signifi cantly earlier than expected. The key here was not just about the


quality of the internet banking off ering. It was also about the banker in the branch being fully well-versed with what its true potential was, and demonstrating that conviction in his/her communication with the customer. Most traditional banks do struggle with this cultural shift – but then there are limited choices there. With the increasing penetration of internet, and the mind-blowing growth in mobile per capita in most countries, banks will need to completely embrace the presence in the digital world even for their survival in the not so distant future. Presence on social media is a hygiene


factor. Yet, if the average banker within the organisation is unaware of the changes


analysis: digital bankingnews


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