Digitization in financial services and insurance: key elements to remember when preparing the digital strategy

In today’s market, ISP industry business leaders must explore new ways of Customer Experience Management (CXM) to meet changing customer demands.

Through Nitin Singhal

One of the outcomes of 2020 is the emergence of a digital economy – an economy where digital avenues and alternatives are just as effective as traditional commitments were in 2019. Although no digital alternative will ever replace digital alternatives. synergies born out of physical and interpersonal interactions, it is safe to say that the pandemic has ushered in a digital transformation of brands and processes at two major levels – the absolute digitalization of infrastructure and the focus on creation as well as providing holistic, empathetic and meaningful experiences for customers. This was particularly relevant to the financial services and insurance (FSI) industry around the world.

In today’s market, business leaders in the ISP industry must explore new ways of Customer Experience Management (CXM) to meet changing customer demands. Here are four takeaways they can take action today!

Adopt a faster pace towards digital transformation

Digital transformation has been taking place in the ISP industry for years, but the sudden shock to the system last year caused digital adoption across the industry. To reduce the pressure on branch office and telephone services, many ISP providers have encouraged the use of digital and mobile channels. In addition to providing convenience during a time of upheaval, it also presented an opportunity to provide more meaningful interactions to customers. ISFs should take advantage of this momentum to continue investing in digital transformation. Job number 1 is to optimize their business website for different audiences, which requires a strong digital platform and constant testing to ensure that the content and experiences are personalized for each visitor.

Max Bupa established its digital presence in 2020 with the launch of its website and was quick to refine its digital journey and create a fully self-sufficient model where consumers could purchase end-to-end insurance online. She was able to increase her website traffic by 70% in five months through more engaging and relevant experiences, and increased her direct digital business from 5% to 15%.

Re-evaluate the technology

Every year ISP companies invest heavily in their core systems, however, the pandemic has highlighted that convoluted and outdated technology remains a major problem. Almost two-thirds of retail banking executives struggle with legacy systems, while more than a quarter of financial services and insurance respondents work on multiple martech solutions. As well as being frustrating and time consuming, this fragmented approach also prevents businesses from seeing a unified customer journey.

It’s an opportunity, especially at a time when record numbers of customers are moving online. Businesses should not view the transformation of core technologies as a radical and one-off project, but as something that can be done gradually to minimize disruption! HDFC Bank has been at the forefront of harnessing digital and technological platforms to deliver products and services for many years. To support zero or minimum physical interface last
year, he’s curated seamless digital journeys for clients with innovative offerings like 10-second personal loans, Zip Drive and Zip Ride for four and two-wheeler loans, Insta account, and more.

Prioritize data

The key to the future success of initiatives such as automation or integrated technologies or customer experience lies in data. In the FSI 2021 Trends Report, only 25% of companies believed that a lack of customer information was holding back their marketing and customer experience efforts. At the same time, only 27% said they had significant knowledge of the customer journey. This reveals a potential blind spot for many ISP organizations, indicating that they are undervaluing this area.

Data is the key. ISP companies should focus on integrating online and offline data to gain visibility into what customers are doing online, thereby guiding real-time decisions and improving digital experiences.

Bajaj Finserv has taken advantage of advanced analytics tools to understand changing customer behavior. Through the intelligent use of data-driven business models, the company is successful in the marketplace by fostering better customer connections and delivering personalized journeys.

Focus on meaningful interactions

The pandemic has exposed consumers’ demand for better information about their finances, prompting businesses to recognize the importance of meaningful digital interactions with a much greater emphasis on personalized offers and communication. IFSs need to continue to focus on closing the gap between the customer, the channels they use, and most importantly, the experience they expect. They need to treat their customers and prospects as people, not datasets, and deliver an exceptional and relevant experience at every touchpoint to turn them into brand loyalists, adding additional value through advice and guidance. assistance.

Embrace the future

There is no doubt that the ISP industry is undergoing a fundamental change. With the role of digital having jumped for all companies in the pandemic, the time has come for companies to reflect and work on their digital strategy that allows scale and operational efficiency for the years to come.

(Nitin Singhal is Managing Director, Digital Experience, Adobe India. The views expressed are those of the author)

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