We are living in a digital era where the entire eco-system around us is surrounded with the evolving Digital Landscape. The terms such as Big data analysis, Social Banking, Virtual Currencies are like Household words in the Banking and Finance word. Let us have a look at the four Popular Digital Social Products in Banking which is a bright future considering the way consumers have embraced the Digital World
A new generations is to be added in the customer segment very soon, The New Generation Z has an attention span of only 8 seconds and 69% of them don’t find value in most apps. Therefore, limiting channels to apps and web pages can influence brand switching. Improving modern banking with WhatsApp Business, 57% of Gen Z-ers use messaging apps at least half the time they use their phone. This is where WhatsApp Business comes into play because it connects banks with them in a way they expect. Providing services over WhatsApp can increase the likelihood of customer loyalty and engagement due to convenience, trust, and familiarity with the app. Additionally, bank profiles can be verified and messages are end-to-end encrypted so, clients and banks can feel secure using the platform.
The Gen Z banking experience in perspective
A Gen Z-er moves to London to attend university and seeks assistance from their bank, ˝Downtown Bank˝. In order to deliver the best experience, the bank makes themselves available for instant interactive communication with rich content capabilities over WhatsApp.
A student finds herself in the middle of the city, unfamiliar with her surroundings and in urgent need of cash. Unsure of what to do, she turns to her bank’s customer support and opens WhatsApp to ask the bank where the nearest ATM is. The bank responds instantly and gives direct links to the nearest ATMs using location and map sharing. The student feels reassured with her bank’s guidance in a new city.
She is at home and sees a commercial on TV for Downtown Bank. Decides to open an account with them but doesn’t want to waste time standing in line at a branch or browsing through pages on the website. She/He decides to send a picture of his ID to the bank through WhatsApp and selects the type of account he wants to open. The bank automatically opens the account.
People sees an ad for an upcoming concert. She doesn’t use the bank’s app and she needs to check her account balance before purchasing a ticket. Then remembers that she can message her bank through WhatsApp, at no extra charge, to check her balance. In seconds, the bank responds with her account balance. After seeing her balance, she realizes she can continue with buying the ticket. WhatsApp banking services are now offered by Kotak Mahindra Bank, Saraswat Bank, HDFC Bank, AU Small Finance Bank, etc. They help their customers receive updates and avail services via the messaging platform.
Following are some of the services that HDFC Bank offers over WhatsApp-
|Check the balance in your account||know the available credit limit|
|Get a mini statement of your account||details for your pre-approved offers|
|Ask for your complete account statement||Get details of your fixed deposits|
|Everything cheque related –(new chequebook, stop a cheque payment, status of my cheque payment)||Ask about all bank related queries (IFSC Code of certain branch, etc)|
|Check the outstanding balance on your credit card|
- Enhance customer experience by letting them bank through their preferred social app.
- Faster execution of customer’s query will in turn decrease the TAT of query resolution.
- Higher satisfaction for Gen-Y and Gen-Z customers.
Monzo is now a fully-fledged bank with a license regulated by the Financial Conduct Authority (FCA) to operate in the UK. It’s also backed by the Financial Services Compensation Scheme (FSCA) which protects up to £85,000 of your money if the bank should encounter any problems. This means Monzo can offer customers current, joint, teen, business and savings accounts, ISAs, loans and overdrafts, plus a number of innovative services all with the assurance that your finances are safe. As one of the new smart-banks, Monzo dispenses with physical branches and instead has a focus on its smartphone app and online customer service. you can discuss issues regarding your account 24/7 via its instant messaging system. While the app remains the hub of the Monzo experience, accounts also come with a debit card to use in the physical world.
Get paid… a day early
The users can put their salary into Monzo and it can advance the cash one day early. No cost, no hassle. Just more time with their money.
Users can sort their money between savings, bills and spending in a few taps. All of their money is neatly separated so they cannot overspend, but still. Under one roof, but separated, the Salary Sorter helps the users to divide their spending, bills and savings to suit themselves, all in one convenient place. So there’s no worrying about accidentally spending the rent.
Spend with Monzo
Get instant notifications the second the user pay. Set budgets for things like groceries and going out, and the users get warnings if they’re spending too fast.
- Collect customer’s spending data so as to find out what add-on products to offer them.
- Increased saving habit for the customer which in turn will boost customer satisfaction.
- Auto pay bills will increase customer’s transactions through the bank’s application.
Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey and then uses the data to offer advice and automatically invest client assets. The best robo-advisors offer easy account setup, robust goal planning, account services, portfolio management and low fees.
- Low-cost alternatives to traditional advisors
- No Human Intervention.
- Bank can offer lower rate of annual fee
- 24/7 accessible.
- Human Advisors can focus on HNI leads.
- Efficient and no human emotions involved in taking investment decisions.
Robo-Advisors for Customer Experience-
- Users who are digital savvy and prefer online models of trading.
- Anybody who is looking to enter into trading or investing in mutual funds but does not have the know-how of how the market works and want to work with lower risk.
- Anybody who is looking for recommendations but does not really prefer or have the time to go on calls on each to understand the best possible.
- Since the complete concept is based on an automated algorithm, there are no chance of any human errors that can lead.
UPI Based Credit Card(Downloadable Credit Card)
The latest Innovation in the market.Unified Payments Interface (UPI) is the most preferred mode of payment in terms of volume followed by debit cards, Immediate Payment Services (IMPS) and credit cards as per ‘India Digital Payments Report 2019’. UPI recorded a transaction volume of 10.8 billion in 2019, a year-over-year increase of 188 per cent, as per the report from payments company Worldline India (WI). UPI is perhaps the fastest product to hit 1 billion transactions-a-month in 2019 since its inception in August 2016. The findings of the report suggest that in India, digital payment products are being primarily utilised for person-to-person (P2P) transactions. Currently, there is no option to avail credit using UPI since it is connected to funds available in the bank account.It can be offered on mobile(a downloadable Credit card, no need to carry a physical card).
- They can transfer money to their friend’s bank account even if they don’t have adequate fund in their account.
- Pay anyone, anywhere
- Transfer credit to own account
- Personalised offers as per customer’s transactions.
For Merchant Customers-
- Advantage of credit limit.
- No need of swipe machine.
- Businesses indulging in large payments to vendors can use credit on UPI to make these payments without the risk of losing (cash). Also, having it stuck in between transactions (online) that could take a toll on working capital.
- Increase in number of credit transactions
- Cut down cost of physical card.
As a whole, these are some of the examples of Popular Digital Social Products in Banking. The new entrants with promises of superior services are coming up every day.
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