Retail Banking DigitizationThe Benefit and Challenge
Retail banking digitization will have a broad enough meaning based on each existing business concept. Let’s find out more in this post.
In this era of digital transformation, more and more banking sectors are beginning to improve themselves. As with CIMB Niaga which strengthens the IT infrastructure as the basis for initiating their retail banking digitization, until the Bank Central Asia, which began to evoke the Fintech era through their ‘Finhacks‘.
This phenomenon indicates that retail banking digitization is today success key.
Banking is a center of economic transactions. The growth of information technology brings many changes and shifts. The success of business today is more influenced in how fast companies can adopt such changes. This is a serious challenge for banks to balance this condition. Banking digitization is not merely aimed at moving manual transactions into automatic. Retail banking digitization will have a broad enough meaning based on each existing business concept.
Benefits of Retail Banking Digitization
Here are some benefits of digitizing retail banking:
- Improve customer service quality
- Accelerate the transaction process
- Reduce costs, both for banks and for their customers
- Can use data for analysis in improving business
- Can quickly increase the number of customers through a myriad of ease in the process
- Digitization may reduce the factor of human error
- Simplify account opening and maintaining customer’s accounts
- Routine task may be more likely to be replaced with an automatic
- Needs in large cash hold decreased
- Can reach more remote areas
- Reduce the use of counterfeit money
- Productivity will increase
Especially in lowering operating costs, digitizing banking is a long-term investment. Banks can reach the broader market by lowering the investment budget for the opening of sub-branches and small cash offices. To be able to do this, in the early stages banks need to transform their IT infrastructure.
Here are some challenges in digitizing banking:
- Banking security is the most critical thing as cyber attacks on financial institutions increased. The readiness of IT infrastructure in the early stages can reduce the risk of cyber attacks on banking services with prevention and rapid and automated response capabilities.
- To optimize efficiency, companies must integrate their omni-channel with “agnostic” concept. In this case, the BizDevOps method will be required.
- Challenges in identifying opportunities by looking at the life cycle of the customer as a whole. In addition, banks will also need to see important changes to improve customer service and experience.
- Addressing fluctuations in retail banking customer loyalty.
- Competition innovation with other banking companies and also with Fintech or digital startup companies.
Elitery As Banking IT Infrastructure Partner
Elitery is experienced in IT infrastructure operations for mission critical for hundred financial institutions in Indonesia. In addition, Elitery is also a trusted partner in managing complex IT infrastructure in several Indonesian and overseas companies. Elitery provides services ranging from reliable Data Center facilities for your IT infrastructure backup, virtualization, automation and orchestration for your IT infrastructure.
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