If you’re looking to find ways that can improve the bottom line, look no further than your digital efforts.
Often bank leaders consider ‘finding waste’ as going through the balance sheet and uncovering unnecessary spending. But other types of waste, when discovered, can lead to opportunity.
And there’s no bigger waste than the lack of interactions banks spark with customers as they go online or to the mobile app. Why? Because there’s a very good chance you’re not engaging with these customers in conversations, as they click around your platform. The assumption comes from the data. BCG evaluated customer interactions at retail banks across the globe, finding that for every one time a customer visits a branch, the same customer will access the bank’s app between 50 and 80 times. The firm then analyzed how banks interact with their digital customers, finding that most do a poor job engaging with these users and sparking conversations. It’s a particularly wasted effort, if you also consider how many billions of dollars go into developing the digital products across the industry.
Modern banks need the digital access. That almost goes without saying. But, while you provide the access, you also must create ways to boost conversations with these same customers. If you don’t, you’re wasting the primary tool in which customers use your services. This impacts the bottom line. Of banks that reported a positive business impact from digital saw an increase of 45% in net revenue growth.
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