22 Sep How Can Banks Supercharge Their Lending Systems?
In this changing world, the demand for digital and virtual banking services is massive. The global Digital Banking Platform and Services market size is projected to reach US$ 26100 million by 2027, a huge jump from its previous value of US$ 10570 million in 2020.
In parallel, there has been a meteoric rise in digital banking adoption among consumers. Two-thirds of adults worldwide now make or receive digital payments, with the number in developing economies rising from 35% in 2014 to 57% in 2021.
All of this together creates the perfect storm of digital profitability for banks worldwide.
The key elements banks need to consider to leverage this economic potential are to facilitate better access to online financial services, improve internal sales productivity, and deliver top-notch customer service.
According to McKinsey, “Customer experience focus and digital transformation practices drive and make the connection between digital transformation and customer experience inseparable”.
To do this, not only do banks need to equip sales teams with data insights and tech capabilities, but they also need to remove intrinsic roadblocks that hinder the growth of lending like:
- High transaction costs and lengthy manual processes;
- Limited access to remote areas in vast and underdeveloped countries;
- Inadequate lead allocation networks with the wrong leads being engaged by the wrong sales reps;
- Time wasted by sellers manually documenting field activities instead of selling;
- Lack of dynamic access to customer data to leverage cross-selling and up-selling opportunities;
- Aggressive competition from new players who also want to leverage the digital wave through innovative products, modern infrastructure, the latest technology, and investments into reaching remote and untapped segments.
Among many others.
Banks can remove these obstacles and create more revenue-building opportunities through:
- Smooth Lead Sourcing and Allocation through machine learning based on defined parameters
- Improved productivity through the design playbooks based on the activities of the best-performing sales reps in the organization. In addition, leaderboards can track the performances of other sales reps and reward them through gamification (such as progress points).
- Better customer service via a 360-degree customer overview will help RMs get a snapshot of activities with links to all active leads, prospects, and service requests. RMs can use this to plan ahead through next-best-action nudges to contextually engage with customers.
- A single interface that provides sales reps with all the information they need in one place.
By removing bottlenecks and focusing on delivering high-value to their customers, banks can fend off competition from emerging Fintech competitors and increase their bottom line. As per industry estimates, digitization initiatives in service integration can result in up to 20% better TAT, 15% faster time to market, and 30% lower loan disbursal time!
So, to leverage this digital boom, banks need to improve productivity by better allocation of leads, analyzing the behaviors of their best employees, and providing their Relationship Managers with a comprehensive view of all customer operations.