Thanks to the enormous changes brought about by digitization, now more than ever, communication is a key factor in ensuring the smooth operation and growth of banking organizations. To explore the current communication trends in banking, we have chosen to focus on two very relevant and timely areas in this post:
- The main aspects of the digital ecosystem that supports communication between banks and customers;
- Why cloud computing improves every aspect of banking communication processes, from security to customer experience, making it the best solution for solving old and new critical issues.
In particular, we will see how, by integrating a cloud native platform delivered in SaaS into its application map, a bank can support its communication strategies with a level of effectiveness that is otherwise unattainable. We will show the benefits that a cloud native choice can bring, from the optimization and efficiency of IT production processes to distribution capabilities through omni, multi-channel, and interactive tools, from the reduction of costs related to customer support to the increased ease of customer retention, and to the expansion and refinement of new service and product offerings.
What characteristics should banking sector communication have today?
When we talk about 360-degree communication in banking we’re primarily referring to digitization, which intervenes in various banking processes to improve business operations and customer interactions. In banking, communication today makes use of a wide range of online tools, such as data analysis programs, mobile apps, digital payment systems, automated solutions to support customer service, products for centralized management of document processes, and platforms for creating interactive content.
In this process of digital transformation that is revolutionizing the way banks communicate and operate, the cloud, as we shall see, has emerged as a major component. Before delving into the benefits of the cloud (especially when delivered in SaaS mode), however, let us pause for a moment to recall the distinguishing factors of contemporary communication within a banking sector that is now largely digitized:
- Customer expectations: customers expect continuous, real-time interactions with banks; they demand immediate access to their accounts, and want quick answers and personalized solutions. Different communication channels, all equally effective, are increasingly necessary to meet these expectations and maintain customer satisfaction.
- Omnichannel: digitization has enabled an explosion of communication channels, including social media, chatbots, email, mobile apps, mini-sites, and more. Banks must adopt an omnichannel approach to ensure uniform and consistent communication across all these platforms and enable customers to move seamlessly from one channel to another without experiencing interruptions in the flow of their experience.
- 24/7 availability: unlike traditional banking services, digital banking services are available 24/7. This constant availability requires efficient communication mechanisms to respond to customer requests, provide timely support, and resolve any critical issues, at any time. Failure to resolve a problem or poor and late communication can cause frustration in customers and potentially push them toward competitors.
- Safety and crisis management: transparent communication helps maintain customer confidence during difficult and crisis times, such as periods of economic recession or natural disasters. Communicating clearly is essential to inform customers about the situation they are experiencing, the steps being taken to deal with it, and the potential impact on their accounts and transactions. While the growth of digital transactions has led to increased security concerns, customers need to be reassured that their personal and financial information is safe. Timely communication about data protection policies and guidelines for online banking is essential in order to not waste the valuable (and limited) resource of trust.
- Onboarding and digital support: as more customers turn to digital banking, effective communication is needed to guide them through the onboarding process and help them understand how to use the tools available to them. Banks should provide clear instructions and targeted support to help customers navigate, right from the beginning of their relationship.
- Adapting to technological changes: the rapid pace of technological advances means that banks are constantly implementing new tools and systems. Effective communication is necessary to inform customers about these changes, how they might affect their banking experience, and the actions they need to take to make the most of new features.
- Data-driven insights: if digitization generates a large amount of customer data, the entire communication ecosystem must be put at the service of banks to help them systematize and qualify the accumulated knowledge, in order to provide personalized offers, advice, and insights that concretely improve the overall customer experience.
Digitization has transformed the banking sector by introducing new communication channels, changing customer expectations, and creating a dynamic and competitive landscape. Effective communication is therefore vital; the evolution that has occurred in communication processes allows banks to deliver exceptional customer experiences, build trust, ensure security, and adapt to ongoing technological changes. In this rapidly changing environment, banks that prioritize and excel in communication are more likely to overcome any obstacles and grow over time.
Revolutionizing banking processes: cloud native SaaS platforms
Today, the banking industry faces increasing competition from fintech startups and other nontraditional financial service providers. To remain competitive, banks must differentiate themselves through superior services and comprehensive and efficient communication strategies with which to improve the customer experience, streamline operations, and remain competitive. The most effective solution that has emerged in recent years to overcome increasingly fierce competition is one that leverages cloud native SaaS (Software-as-a-Service) platforms.
In 2021, banks spent nearly $21 billion globally to equip themselves with IaaS, PaaS, and SaaS technologies, according to consulting and analytics firm GlobalData. The cloud computing market in banking will grow again between 2021 and 2026, at an annual rate of more than 22%. One of the most interesting pieces of evidence to emerge from GlobalData’s report concerns investments in SaaS technologies, which account for the largest share of global revenue for cloud services.
The choice of a native cloud platform delivered in SaaS mode is almost obligatory if we consider that it enables banks to take a 360-degree approach to communication, while streamlining and enhancing its processes. But what is cloud banking and what is its actual contribution to communication in banking?
How does cloud banking work and what are its benefits?
In banking and financial services, moving to the cloud involves the on-demand provision of a range of IT services, including data storage and analysis functions and communication and networking applications. With the cloud, banks can quickly enjoy tailor-made solutions, directly leveraging the software infrastructure that governs daily operations.
A native cloud platform delivered in an SaaS model provides the infrastructure needed for continuous communication across multiple channels, taking care of critical factors such as performance, reliability and scalability. Unlike traditional on-premise solutions, a cloud native platform provides ease of deployment, upgrading, and maintenance, freeing banks from the complexity of managing hardware and software stacks. These technical features pave the way for more agile communication strategies that adapt more easily than unpredictable changes and events. The advantages of cloud banking are numerous; here are some of the main ones:
- IT production process optimization. By integrating a cloud native platform into their IT infrastructure, banks can significantly optimize their production processes. The platform’s inherent flexibility and scalability enable rapid adjustments to meet changing communication requirements. Automation features simplify routine tasks, reducing manual intervention and the risk of errors. This increase in efficiency translates into faster response times, timely problem resolution, and overall improvement in internal workflows.
- Improved distribution capabilities. A 360-degree communication strategy aims to reach customers through their preferred channels, whether mobile apps, websites, social media, or traditional physical branches. A cloud native platform enables a multichannel approach, ensuring consistent messages and experiences across all touch points. Multichannel capability enables customers to interact through the channels they prefer, promoting engagement and increasing satisfaction. In addition, by enabling real-time interactions, banks are able to establish deeper connections with customers.
- More efficient customer support. One of the most important benefits a cloud native platform offers is its ability to reduce support costs while improving customer satisfaction. Through intelligent chatbots, AI-based virtual assistants, and automated response systems, banks can handle a significant portion of customer queries without any human intervention. This not only reduces operational expenses, but also offers immediate support, improving the customer’s experience. In this way, only the most complex questions are forwarded to human operators, who can focus on higher-value interactions.
- Customer retention. Efficient communication and responsive customer service directly contribute to customer loyalty. When customers receive quick, personalized, and decisive answers, their trust in the bank is strengthened. The ability of a cloud-native platform to “remember” previous interactions and preferences expressed in the past ensures that customers feel understood and valued. As a result, they are more likely to remain loyal, support the bank’s services, and even consider additional offers.
- Expansion opportunities for services and products. A 360-degree communication approach is not just about optimizing existing processes, but about unlocking new business opportunities. The agility of a cloud-native platform enables banks to rapidly deploy new services and products, leveraging emerging trends and specific customer needs. With streamlined communication and distribution channels, banks can introduce innovations to the market faster, gaining a competitive advantage.
In general, migration to cloud computing supports a more secure business model and a seamless customer experience. That’s why more and more banks and financial institutions are moving to the cloud, like Bank of America, which reportedly made $2 billion in one year just by choosing the cloud, according to knowledgehut.com.
A new way to communicate: the Doxee CCM
We talked about how the banking industry journey has been changed by digital transformation. And we’ve seen how adopting a cloud native platform delivered in an SaaS model supports 360-degree communication and enables process optimization, improved customer support, and the ability to explore new avenues for growth. We can now take a step further in the direction of increasing operational efficiency and say that what banks really need is a cloud-based and SaaS-delivered customer communication management strategy that is truly holistic: Customer Communication Management. Let’s explain.
Forms, exchanges of correspondence, written statements, contract proposals, subscription forms, background materials, receipts for the successful delivery of a service, transactional documents: communications that allow financial institutions, banks, and service companies to interact with their customers are conveyed over many different types of content over time. Digital transformation has profoundly reshaped this communication system, changing the way information is created and distributed between users and organizations.
By optimizing activities related to customer communications, new technologies play a key role in helping banks strengthen and expand customer relationships. In the banking sector, Doxee’s Customer Communications Management sits perfectly at the center of this evolution: an effective and efficient tool through which to offer a fully multichannel experience; a strategy capable of pandering to the empowerment trend that increasingly pushes customers to prefer a digital environment where they know they can be heard and recognized and in which they can move and operate autonomously.