An Efficient Bank Continues to Transform Thanks to the Synergy of Offline and Digital Solutions | Kiev post


The past year has brought many changes to fairly familiar facets of our society: consumer sentiment and the communication model. It has been a difficult and stressful year, but also an interesting one for meeting challenges and recognizing new opportunities.

The year 2020 has become a catalyst for the digital transformation of the financial system, which was ultimately forced to do everything it didn’t have time to complete as the pandemic and quarantine restrictions changed habits. of Ukrainians in favor of the Internet. solutions, digital technologies and cashless transactions.

In the same year, the National Bank of Ukraine adopted the necessary decisions to make remote identification possible via Bank ID and launched the Diia (Action) application, which is a breakthrough in the field of remote maintenance. This opened a new era in the development of banking technologies.

We can say that the market is already saturated with banking products. Customer demands and desires have already changed, and customers are increasingly demanding in technology, contactless service and remote and fast account opening.

As a result, competition in the financial sector has shifted to technology and digital innovation, highlighting banks’ lack of products, sales channels and technologies and forcing them to invest in the changes. transformational.

At O.Bank, our digital solution, launched in early 2020, received positive market feedback, supplying a third of Idea Bank’s new customers. This is clear proof of the demand for new technologies and digital solutions in the market.

Digital transformation has also had an impact on banks’ business models and strategic planning. Online sales are starting to push back offline sales and hence there is a need to determine the future of offline sales channels. Neobanks are successfully implementing the branchless business model, using only digital technologies. The majority of the big banks only use the applications and the online versions as a platform to sell their products offline and to access accounts, which is no longer sufficient.

As a result, combined business models comprising both offline sales channels and digital solutions will emerge, with separate dedicated products, technologies, people and units.

We can now see that some banks are optimizing their cumbersome and inefficient branch networks. However, the low efficiency of these branches does not largely depend on the efforts of their management. The problem concerns the competitiveness of products in the market, the demand for them, the right sales technologies, business processes and communication with customers.

On the other hand, some banks do not plan to reduce their branch networks, but rather to develop efficient points of sale, to rebuild the functionalities offered by the branches, to build competitive and demanded products and to improve the level of communication with customers.

Therefore, within 3-5 years, the focus will be on online sales and the combined business models will continue to improve their efficiency, as the diversification of sales channels and the ability to work with different segments of customers will provide optimization opportunities. expenditure and improve the efficiency of these banks.

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