Surprising, but true – Internet-based activity is not the preserve of the young “digital native” generation alone. A 2008 survey says that Generation X (those born between 1965 and 1976) uses Internet banking considerably more than any other demographic part, with two thirds of Internet users in this age group banking online.
Gen X users have also professed their preference for applications such as Facebook, to proportion, connect and be part of a larger community.
This is some irony in this, since online banking, as we know it today, offers minimal interactivity. Unlike in a branch, where the comfort of two way interaction facilitates the consummation of a variety of transactions, the one way street of e-banking has only managed to permit the more routine responsibilities, such as balance enquiry or funds move.
It’s not hard to put two and two together. A clear opportunity exists for edges that can transform today’s passive Internet banking offering into one that provides a more extensive and interactive customer experience.
It is consequently imperative that edges transform their online offering, such that it matches the new expectations of customers. additionally, Internet banking must journey to popular online customer hangouts, instead of wait for customers to come to it.
There are clear indications that the shift towards a “next generation” online banking ecosystem has already been start. It is only a matter of time before these trends become the norm.
Leveraging of Social Networks
Forward thinking edges are leveraging existing social networks on external sites to increase their visibility among interested groups. They are also deploying social software technology on their own sites to include the same communities in two way discussions. consequently, their Internet banking has assumed a more pervasive persona – customers are engaging with the bank, along with its products and sets already when they’re not truly transacting online.
Heightened visibility apart, edges can gain tremendous customer insight from such unstructured, informal interactions. For example, a discussion on the uncertain financial future among a group of 18 to 25 year olds could be a signal to edges to offer long term investment products to a part that was before not considered a target. Going one step further, a positive buzz around a newly launched service can create valuable information-of-mouth advertising for the business.
Collaborating by Web 2.0
The collaborative aspect of Web 2.0 applications has enabled edges to draw customers inside their fold more than ever before. Traditional methods such as focus group discussions or market research suffer from the disadvantages of high cost, limited scope and possible to introduce bias. Feedback forms merely serve as a post-mortem. In contrast, Web 2.0 has the ability to carry a great audience along right from the start, and continue to do so perpetually. consequently, an interested community of prospects and customers participate in co-creating products and sets which can fulfil their expectations.
The pervasiveness of Web 2.0 enables delivery of e-banking across multiple online locations and web-based gadgets such as Yahoo!Widgets, Windows Live or the iPhone. This method next generation online banking customers will enjoy heightened access and convenience
A New York based firm of analysts found that 15% of the 70 edges tracked by them had adopted Web 2.0, a number of them having done so within the last 12 months.
Standard Chartered Bank employees connect with their colleagues by Facebook and use the platform to proportion knowledge, clarify questions and participate in discussions on current company activities.
Bank of America, Wachovia Bank and Commonwealth Credit Union have built a presence within interactive media to create awareness and keep up a dialogue with interested communities. They have employed a variety of methods, ranging from creating YouTube communities to launching campaigns on Current TV, a channel in which viewers determine content.
Personalisation of Online Banking
Vanilla e-banking divides customers into very large, heterogeneous groups – typically, corporate, retail or SME, with one kind of Internet banking page for each. That’s in sharp contradiction to how banking organisations would like to view their clientele. edges are moving towards customer-specificity, almost viewing each client as a “part of one”, across other channels, and online banking is set to follow suit. for example, a specific home page for home loan customers and another for private banking clients could well be a possibility in future.
Interestingly, National Bank of Kuwait had the foresight to do this several years ago – they enabled customers to determine which products they would view and access, and were rewarded with a emotional increase in online transactions.
Money Monitor from Yes Bank allows customers to choose their landing page – for example, they can set “all transactions”, “net worth” or “portfolio” as their default view. Other features include the ability to categorise transactions as per customers’ convenience and the printing of custom reports.
Beyond doubt, Internet banking has produced a more informed, empowered class of customers. This is set to climb to the next level once customers are allowed to proactively participate in many more transaction-related processes. The Internet has already made it possible for customers to compare product loan offerings, simulate financial scenarios and design custom retirement portfolios. Going forward, they would be able to consummate related transactions – which method, after comparing interest rates, they could originate a loan online, and once secured, they can begin to repay it online in addition.
The emergence of Web 2.0 technology coupled with edges’ desire to personalise their e-banking to the highest degree is likely to consequence in “portalisation” of Internet banking. The idea of banking customers being able to create their own spaces online, filled with all that is applicable to them, is not that far-fetched. Customers can personalise their Internet banking page to mirror the locaiongs of multiple accounts across different edges; they could include their credit card information, subscribe to their favourite financial news, consolidate their physical assets position, proportion their experiences with a group and do more – all from one “place”.
Money Monitor enables customers to add multiple “accounts” (from a choice of 9,000) to their page. Accounts could be savings or loan accounts with major Indian edges, or those with utilities providers, credit card companies, brokerage firms and already frequent flyer programs. Users can customise their pages as described earlier.
As edges seek to develop their Internet banking vision for the future, in similar, they will also need to address the meaningful issues of security and “due defence”. While it is every marketer’s dream to have customers work as ambassadors, adequate precaution must be taken to prevent the proliferation of malicious or spurious publicity. consequently, before an individual is allowed to participate in a networking forum, he or she must have built up a popular track record with the bank. The individual must be a recognized customer of the bank, having used a minimum number of products over a reasonable length of time. Qualitative information about the person’s interaction with the bank’s sustain staff (for example frequency and kind of calls made to their call centre, outcome of such interaction and so on) may be highly useful in profiling the “right” kind of customer who can be recruited as a possible advocate.
Collaborative Web 2.0 applications may necessitate opening up edges’ websites to outside technology and information exchange with third party sites, raising the spectre of data and infrastructure security. A strong mechanism of checks and balances must be built to ensure that the third party sites are obtain, appropriately certified and present no threat to the home edges’ sites. Likewise, before a third party widget is allowed to be brought on to a site, it must have passed by stringent security control.
Due diligence must be exercised before permitting users to place a link to another site to guard against the possibility of unexpected download of malicious software, which could, in the worst case, already consequence in phishing originating from the edges’ sites.
It is equally important for a bank to guard its customers against invasion of privacy, data theft or misuse. The concept of portalisation envisages deploying technology to bring information from other edges’ or financial service providers’ websites into the home bank’s site. The home bank must ensure that its customers’ personal or transaction related information, which may be shared with the other providers, is not prone to leakage or outright misuse.
edges will do well to partner with an Internet banking solution provider which has not only the skill to translate their vision into a cutting edge e-banking experience for the user, but also the foresight to define boundaries for safety. With security concerns adequately addressed, next generation Internet banking is complete of exciting possibilities. edges that seize the opportunity may find that Internet banking can become a method of differentiating themselves from competitors, instead of a insignificant cost cutting tool. Clearly, providing a more powerful and interactive e-banking experience, is the way forward.