The financial institutions and banking industry are undergoing a radical shift, one driven by competition from compliance pressures, FinTechs, mountain regulation, and disruptive technologies. The emergence of Non-bank startups is changing the competitive landscape in financial services and the way of going business. Other banking-related challenges can be resolved by using emerging technologies, but the transition from legacy systems helps banks to innovative solutions that have not always been an easy one.
In this blog, we are going to know how choosing the right financial software development services can help to overcome all the banking-related challenges. Fortunately, we have companies like TatvaSoft, Baires Dev, Science Soft, and many more that will help to handle all the banking related queries and issues. So, without any further ado, let’s get started!
How do Banking Software solutions help to overcome banks’ challenges?
1. Touch Competition
As we all know, the competition within the banking sector is increasing, thanks to the emerging and innovative technologies for providing the appearance of online banking services. Customers are using digital platforms to manage their finances, a retail bank’s geography no more defines its target audience and competitive edge. Many fintech companies are trying to win the same customers but retail banks are facing stronger competition than before.
Banking software solutions help retail banks to analyze customer experience and find new opportunities to adopt them quickly. To customize financial products and services, you can use data analytics and adjust them to satisfy customer requirements and references.
2. Attract and retain clients
Financial institutions and banking sectors have to stand out in the crowd by offering customers something different and extra. According to Joe Sullivan, the CEO of Market Insights, there is not one single thing that can differentiate one bank from another, except making a connection with customers.
The financial service provider helps businesses and customers take ownership of their finances to become money managers and will have larger client bases.
3. Rising expectations
Now customers are smarter and more informed than before and expect a high degree of personalization out of their banking experience. For heightened expectations and requirements, changing customer demographics play a vital role with each new generation of finances and banking, and as a result, an increased expectation of digitized experiences.
Millennials have led the charge to digitization, with five out of six reporting that they prefer to interact with brands via social media; when surveyed, millennials were also found to make up the largest percentage of mobile banking users, at 47%.
4. Security and centralization of data
For BFSI institutions, security is one of the most important concerns, and to address this concern, advanced IT solutions are created with high security at the forefront. The top and high-quality networks that we are using today, allow IT managers to set up a private, secure cloud to protect all of the organizations’ sensitive data. Security and centralization of data mechanisms to control access also exist and all the IT solutions encrypt all user’s connections to a man-in-the-middle attack.
5. Slow service delivery and long waiting times
Slow delivery and long waiting time are one of the most common challenges that the banking sector has to face. Most banks are dependent on their customer support teams to cater to their customers’ problems and requests. It works well for startups that do not have high demand and requirements, but for most financial institutions it is not easy to resolve every customer’s query instantly.
When a customer needs help and they call the customer care number, they have to wait in a queue to talk to an executive. And, sometimes, the executives are required to transfer their call to another specialized department that can handle the query better. This situation sometimes creates delivery delays and causes unpleasant experiences for a lot of customers.
In such situations, where you are losing your potential customers due to slow delivery and waiting time, make sure to use a technology that will help you to speed up the process. Let’s say a chatbot or digital banking assistant can tackle a significant share of customer queries for you and free up some time for your customer care executives.
6. Decreased customer experience and loyalty
As the financial institutions and banks are stepping out into the age of the customer, the quality of customer experience and customer service is becoming their primary concern. Customers are not interested in knowing about the hardships of creating these experiences, they just want immediate value and they will go elsewhere if your bank can’t provide it.
In such a situation, banking software solutions help to increase customer experience and loyalty as well as make it easier to find what is important for customers and how they make their choices.
There are many banking-related challenges to contend with, finding a clear way forward can seem like an overwhelming task — but searching for the right team to support your efforts, digital transformation is attainable. Using chatbots can help you take the load off your customer service team and allows you to focus on handling other complex tasks and improve customer experience.
Here we discussed the best solutions provided by banking software solutions that help to resolve all the challenges immediately.