The customer-centric approach is leading to a change in strategy, generating multiple challenges for the sector. Interview with Jo Cuyvers, Managing Director of DynaFin, a management consulting firm active in the Benelux.
How is an omnichannel model essential to deliver an optimal customer experience?
Jo Cuyvers: “According to our survey of banks and insurance companies, those with both a physical and an online presence (“Bricks & Clicks”) offer customers the best of both worlds. But those that distribute less complex, commodity-like products and services (e.g. retail banks) are more likely to move primarily – or even solely – to a digital-first strategy. On the contrary, those distributing more complex products and services continue to focus on physical contact with customers with the support of digital tools. As a result, they will more likely focus on a phygital (physical + digital) business model..”
Is the relationship of trust with the client in such a model therefore crucial?
J.C. : “It plays a central role, if not the most important. It is in the very nature of the business model. However, digitalization makes it more difficult to establish a relationship of trust. The challenge is therefore to accompany the consulting activity digitally and to make complex issues accessible and understandable for everyone. Customers must be able to rely on the digital infrastructure of a bank. The omnichannel approach puts the customer at the center of its concerns, providing a personalized service and an optimized user experience. This allows the customer to easily access information from any of these channels, as they are connected to each other..”
And with a 24/7 service?
J.C. : “The rise of virtual customer care is driven by the requirement to respond quickly to increasing customer demands across multiple channels and to support business continuity. Emerging technology solutions combine artificial intelligence techniques, such as deep learning and natural language processing. This results in digital assistants with more advanced conversational capabilities and an improved ability to understand customer context. They also allow for the inclusion of infographics, artificial voice or emotional situation..”
So, the customer journey is rethought on a phygital model?
J.C. : “The deployment of digital technology includes human interactions in the construction of determined relationship models. Customers continue to value the trusted contact with their advisors when making decisions at key moments in their lives or when carrying out complex banking/insurance operations. The banking and insurance professions are therefore moving from an administrative role to an advisory role to build a personalized customer relationship.
Does an omnichannel management strategy require the implementation of a technical infrastructure with enhanced data capabilities?
J.C. : “To realize the customer journey across different channels, including the ability to switch between channels and real-time interaction, the different IT systems of banks & insurers need to facilitate the exchange of data between them. This requires a high level of integration and system performance. The intelligent use of data aims at providing new highly personalized services.
As such, many banking/insurance products are highly standardized, but new technologies allow for greater personalization, such as a holistic view of the customer or products and services tailored to customer needs. A.I. algorithms enable large-scale data analysis and identify new patterns in the customer lifecycle. The goal of financial institutions is to create predictive models to anticipate customer needs in terms of products and services.
With this in mind, is optimal cybersecurity more essential than ever?
J.C. : “It is essential that banks can trust the applications involved in an interaction. They must therefore be on the lookout for suspicious programs such as malware that can infiltrate a device without the user’s knowledge. But that same user must also use these tools appropriately, based on the digital profile that the bank has built over time. Ways to strengthen security include digital identity control via multi-factor authentication, or intelligent transaction filtering based on algorithms that can identify malicious patterns and analyze transactions at a holistic level. Cloud strategies have also evolved in the industry, where trust in data protection has increased across providers, but with a limit set for data storage in Europe..”
The rise of virtual customer support is driven by the requirement to respond quickly to increasing customer demands across multiple channels.
Banking and Insurance sector: the evolution of the customer relationship
The customer-centric approach is leading to a change in strategy, generating multiple challenges for the sector. Interview with Jo Cuyvers, Managing Director of DynaFin, a management consulting firm active in the Benelux. How is an omnichannel model essential to deliver an optimal customer experience? Jo Cuyvers: “According to our survey of banks and insurance […]
The Urgency To Evolve Process Improvement In The Digital Era
Key Drivers Of Digital Transformation The Covid pandemic shook businesses to their core and put them to face a very raw reality – if businesses want to survive the changing ecosystem, they must change with it or perish in a highly competitive market, unable to meet the demands of the customers. As the world turned […]
DynaFin is proud to have invited Thierry Geerts, Country Director of Google Belgium
Yesterday evening DynaFin Consulting gathered, in a covid-safe way and invited Thierry Geerts, Country Director of Google Belgium, as guest speaker to share his view on today’s technology. Mr. Geerts has written two books on the subject – Digitalis (2018) and Homo Digitalis (2021). During his expose, he highlighted some key messages. Ambient Computing, […]
Benefits of Open Banking
Benefits of open banking have taken on a new significance since the COVID-19 crisis. Operational resilience will not be enough for banks to thrive in a world with changing and ever increasing customer needs and customer demands. Fostering partnerships with FinTechs and embracing the potential of open banking can deliver creation of new services and […]
The current crisis is likely to push the financial sector further towards (Tech) shared services partnerships and to this respect we see cloud policies being reviewed at a rapid pace. By turning towards third party specialists, financial institutions look to benefit from economies of scale, a more flexible cost base and further resilience to economic […]
Digital Finance Strategy
A digital finance strategy for Europe could speed up the adoption of securities tokens. The development of securities tokens (and crypto assets in general) is currently hindered by the regulatory uncertainty on this subject. Finding a balance between investor protection, market stability, risk mitigation and innovation does not seem to be that obvious. The European […]
The future of work includes new work environments, new ways to collaborate, new digital skillsets and new methods of leveraging technology to augment human capabilities. 2 Minutes Read of an interesting study that reveals a ‘Skills Gap’ which potentially jeopardizes the future of banking workforce and discusses internal and external solutions the Financial Institutions will […]
InsurTech is changing the Insurance industry. AI and Big Data become more firmly embedded into existing operating models. Independently learning machines have various areas where they will be game-changing and are already having a sizeable impact. Interesting read on a number of use cases and evolutions with regards to autonomous vehicles, the use of blockchain, […]
Digital Human Book : Banking for Humanity
DynaFin was recently present at The Banking Scene 2019.
No insights found