Banking - The Advent of the New Age

Abhinav Haldia, Country Director-India,
Wednesday, February 8, 2017
Abhinav Haldia, Country Director-India,
Headquartered in Mumbai, Lenddo is a leading provider in consumer finance with life-changing services by using social authentication & scoring technology, credit scoring and verification with an aim to economically empower the middle class section around the world.

New technology that facilitates easier comparison between financial services, the development of new banking organizations and the reduced barriers to switching to a new bank has weakened customer loyalty. So, do banks need to worry? The good news is that the last generation of customers tends to be extremely loyal; the relationship between consumers and their banks lasts longer on average than many marriages, but the new generation perceives banks' services as too expensive or out of reach for those who lack credit history. This distrust makes it difficult for banks to reach the young generations, which will power them in the next decade. Can banks overcome this skepticism?

Often considered opaque and confusing, big data can give financial institutions a better understanding of existing markets and create opportunities to engage with new ones, using advanced machine learning techniques to build predictive algorithms and optimize the power of data can help them earn more, spend less, identify fraud and design optimal processes. Banks must show their understanding of their customers by offering services that offer greater transparency and higher added value and Data Analytics can be instrumental in providing these services.

Happy customers buy twice as many products from their bank. To understand how to best serve customers, it is first necessary to evaluate the consumer experience. In the past, a positive experience with a bank started with a face to face meeting with a helpful banker. However, the visits to banks have declined, the banks do not want you to visit them and face to face meetings have been replaced with online interactions. Effective use of digital technologies will help make these digital experiences just as personal as in person interactions at bank branches.

By using digital data sources to verify customer identity and approve more loans, banks can significantly reduce the application time and improve customer experience. Banks can use technology in innovative ways such as using geo-location to offer discounts on services or preferred products in the vicinity. Banks' knowledge of what their customers bought, earned and spent gives them a unique strategic relationship with their customers. Banks may also know their customers' objectives in terms of savings, their aspirations, and what their retirement will look like.

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