Digital Banking: Competitive technological strategies for banks

To remain competitive, banks apart from studying customer behaviour, have also to examine themselves from the technology perspective. The following are strategies that banks may adopt to better exploit the opportunities out there:

“Digital engagement strategy” involves mobile devices, social media, the web, and the internet. With the convergence of digital channels into one medium, banks can create awareness, react promptly to complaints and be able to engage with customers across all touch points thus enjoying the benefits of social media engagement with as discussed in the preceding section.

“Digital inside out strategy” is one that is internally driven by the institution. Most banks’ investment initiatives in this regard are to provide solutions to traditional banking needs. This strategy has two categories:

• User interface enhancements through independently developed multi-channel access, e.g. websites and mobile banking platform

• Technology upgrade through secure web-based linkages and through the ability to interoperate diverse business processes via server-to-server connectivity for end-to-end “straight-through” transaction processing

“Digital outside in strategy” relies on partnerships with fintechs and telcos to create value around existing digital products and developing new integrated services. Instead of banks looking at fintechs and telcos as treats to their business, they should see them as partners and collaborate with them to leverage on their digital capabilities. This strategy can be made even more effective by combining it with another strategy such as the digital engagement strategy. By partnering with social media companies a bank will not just be creating a new marketing platform, it will also foster the use of banking services more naturally as if the customer is chatting with friends through these media