The Challenges of Moving from Multichannel to Omnichannel Banking
Omnichannel banking allows greater interaction with customers to gain more information and better understand their intentions to create a more personalised and complete experience
The Modellica Fraud Engine is an all-in-one solution for verifying the identity of new customers and detecting fraud, therefore helping organisations to build trust and strengthen security as they continue their digital transformation
2020 marked a turning point in the digital transformation of the financial ecosystem. The COVID-19 pandemic and resulting lockdown measures have forced the sector to adopt and develop digital strategies so as to provide customers with the same level of service without them having to set foot inside a branch, and this has opened the very real possibility of being able to carry out transactions using a range of different devices. It is, without a doubt, a significant milestone and has very rapidly narrowed the gap between physical and online banking.
Banks have now recognised that there is an urgent need to transform their traditional services into a complete banking experience. Whereas before they simply focused on securely managing their customers’ money and transactions, now they need to provide an omnichannel service with a holistic approach based on customer interaction. Whilst multichannel banking aims to provide the same access and banking experience at any time, any place and from any device, omnichannel banking enables interaction with the customer through multiple points of contact, therefore helping banks to better capture their intentions. If analysed properly, this data can provide valuable knowledge about the customer to help optimise both conversations and their overall experience. According to GDS Modellica, “Banks need to transform the available data into knowledge. If you understand the customer, you can offer them smarter, more personalised services that really stand out”.
There are three main challenges that financial institutions face in trying to achieve an omnichannel presence: capturing customer intentions, managing their commitments and acquiring and utilising processable data. To do this, companies have to use various analysis techniques, such as Big Data, Artificial Intelligence or Machine Learning, all of which help to quickly obtain processable data and capture customer intentions through the various available channels.
A true omnichannel platform consists of a service architecture that enables real-time data synchronisation. But omnichannel banking is not a replacement for multichannel banking – it’s an enhancement. Multichannel banking will continue to be the foundation for a complete omnichannel experience. In omnichannel banking, the customer is at the centre, and they come before anything else. The aim is to provide them with a personalised message and a smooth, unified experience whilst simultaneously satisfying their individual needs, anticipating their desires and tastes and ultimately, exceeding their expectations.
However, according to GDS Modellica, despite the significant number of guarantees currently in place, banks are more exposed to fraud than ever before due to the increased number of channels that customers are using to access financial services and products. As a result, if they are to beat the fraudsters, financial institutions need better tools that are properly integrated throughout their businesses. Security comes first. To address this need, GDS Modellica has developed the Modellica Fraud Engine to enable cross-channel and cross-device identity verification. The Fraud Engine is a key solution that can help companies to verify the identity of new customers and detect fraud, thereby helping organisations to build trust and strengthen security as they continue their digital transformation.
Another constant challenge for banks is how to guarantee privacy and data security. Online crime is not going away, and scammers are resorting to increasingly complex techniques to attack banks and customers and take advantage of weaknesses on established channels or devices. This is where omnichannel banking can help. By tracking customer activity, monitoring social media and interacting directly with the customer, banks can generate a more complete image of the customer’s identity to more easily detect fraud and security weaknesses.