4 minute read
How Digital Transformation is Empowering Banks to Deliver Better, More Competitive Customer Experiences
The digital revolution has indeed taken the Middle East by storm and every industry is being transformed by technology. The banking sector is no different, and traditional banking systems are rapidly changing
Millions of people have now embraced fully integrated mobile banking experiences, for example, using smartphones and tablets to do everything from buying products and services online to opening new accounts and making payments. A recent outlook from McKinsey notes that amongst urban consumers in the UAE and KSA, at least 80 percent now prefer to do their banking on computers, smartphones and tablets— visiting branches and call service hotlines only to meet specific and more complex needs.
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Digitalisation is no longer a choice but a necessity. Banks must continue to embrace digital applications in order to provide more value to their customers. But what does that journey look like, and what strategies can banks apply in an increasingly competitive market?
Digitalization and enhanced customer experiences
There are various areas in the region’s banking sector that are getting digitalized. These include online banking applications, fraud detection systems, virtual assistants, mobile banking tools, email marketing, data encryption, KYC software, and more.
A robust digital transformation strategy is ultimately one that is aimed at benefiting both the bank and its
Alaa Elshimy, Managing Director & SVP, Enterprise Business Group, Huawei Middle East
customers. This is especially true at a time when customer experience has become the new battleground for differentiation. According to some estimates, 86% of consumers are now willing to pay more for a better brand experience.
Digitalisation has the potential to significantly improve these customer experiences in various ways:
Technology can now enable banks to make sense of large amounts of structured and unstructured data to enable hyper-personalization, relevancy and real-time feedback to better understand customer behavior and purchase journeys. They can in turn offer an enhanced customer experience based on these accurate and timely insights.
Furthermore, banks can now maintain constant and real-time interaction with customers through an omnichannel approach. AI-powered chatbots, for example, can quickly answer customer complaints, allowing an organization to build a better brand image and establish trust with their customers.
With digital banking, customers can also have the flexibility to access services anytime and from anywhere, saving time and offering convenience.
The technology to get there
There are a variety of technologies available today that can aid in the banking industry’s digital transformation, perhaps most notably:
Blockchain - The use of blockchain in banking could result in a more user-friendly interface, increased accuracy, and more secure data and transactions. Furthermore, blockchain technologies will make transactions transparent, allowing for easier collaboration.
Artificial Intelligence - Chatbots and online assistants that can help customers resolve issues or complete various transactions are examples of AI in banking. Apart from that, AI can now help in data analysis for security purposes, for example, evaluating client data in seconds to detect fraudulent transactions.
Cloud Computing – Another vital technology that can assist banks in becoming more successful is cloud computing, which enables them to boost efficiency, streamline operations, and offer products and services more quickly. In addition, cloud may aid in risk analysis and provide a secure environment for clients and internal bank operations.
Bringing together the right technologies for the right customer
experience applications requires the right ecosystem partnership.
Since entering the financial services industry a decade ago, Huawei has empowered 2000+ financial customers in more than 60 countries and regions, including 47 of the world’s top 100 banks. Huawei has become an important partner in the digital transformation of the financial services sector worldwide. Today, Huawei offers full-stack cloud, device and edge capabilities through the aggregation of SaaS services, as well as closely collaborating with financial institutions and the ecosystem to build new services for any scenario.
As just one example in the Middle East, Huawei has helped Dubai International Financial Centre (DIFC) prioritize connectivity and accessibility. Having realized the importance of digitalization ahead of the arrival of COVID-19, the pandemic played a role in accelerating the adoption of all digital channels offered by DIFC with full access to services and connectivity for clients. A core component of the transformation was launching next-generation Wi-Fi 6 in partnership with Huawei, offering the fastest Wireless Local Area Network (WLAN) technology to date. The solution was deployed across public areas in DIFC, reinforcing the centre’s position as the most advanced financial hub in the MEASA region. As DIFC looks to triple in size by 2024, the launch of Huawei’s AirEngine Wi-Fi 6 will help DIFC meet its growing connectivity requirements, ensuring its community
has access to the latest technology and network, with the capacity to support innovative smart services.
Future industry outlook and opportunities
The future of financial services is based on being agile. All organizations must be fast to create new services, fast to respond to competitors, innovative and, above all, stable. As consumers shift from bricks to clicks, financial service institutions will need to keep up with the needs of a growing number of ‘digitally-savvy’ consumers. Digital transformation opens a plethora of opportunities and gives financial institutions a new competitive edge, and one thing is for certain: digital transformation in the banking sector is unavoidable, and it will be an instrument that will drive the new financial reality of tomorrow.
