INDUSTRY WATCH
Iman Ghodosi , Managing Director Australia and
New Zealand , Backbase banks can improve their bottom line and strengthen their competitive position .
While both sides of the banking flywheel are important , their true power lies in their synergy . When the customer value and business value sides work together , they create a self-reinforcing cycle that can drive significant momentum .
By investing in customer experience initiatives , banks can increase customer satisfaction and loyalty , leading to higher revenue and market share . This increased revenue can then be reinvested in technology and other initiatives to further enhance the customer experience , creating a virtuous cycle .
To effectively harmonise the customer value and business value sides of the banking flywheel , banks should consider the following strategies :
1 . Invest in technology : Technology plays a crucial role in driving efficiency , improving customer experiences and enabling innovation . By investing in modern technology solutions , banks can streamline processes , reduce costs and offer personalised services . This includes areas such as digital banking , artificial intelligence , and data analytics .
2 . Prioritise customer experience : Customers are at the heart of the banking flywheel . Banks must focus on delivering exceptional customer experiences by understanding their needs , preferences and pain points . This can be achieved through personalised interactions , convenient channels and proactive support . For example , banks can leverage data analytics to identify customer preferences and tailor their offerings accordingly .
3 . Optimise operations : Efficient operations are essential for maximising profitability . Banks should continuously review and optimise their processes to identify areas for improvement . This may involve automation , streamlining workflows and reducing costs . For instance , banks can use robotic process
automation ( RPA ) to automate repetitive tasks and improve efficiency .
4 . Foster a culture of innovation : Innovation is key to staying ahead of the competition and meeting the evolving needs of customers . Banks should create a culture that encourages experimentation , creativity and a willingness to embrace new ideas . This can be achieved through initiatives such as hackathons , innovation labs and employee training programs .
5 . Measure and analyse performance : To track the effectiveness of the banking flywheel , banks should establish key performance indicators ( KPIs ) and regularly measure their progress . This data can be used to identify areas for improvement and make informed decisions . For example , banks can track metrics such as customer satisfaction , net promoter score ( NPS ) and return on investment ( ROI ).
While the banking flywheel offers significant potential , it is not without its challenges . For example , banks may face obstacles such as legacy technology that can hinder their ability to implement modern technologies and deliver exceptional customer experiences .
Data privacy and security can also prove challenging . The increasing use of technology and data creates new requirements for banks in terms of data privacy and security . Banks must ensure that customer data is protected and comply with relevant regulations .
Also , there are changing customer expectations that need to be considered . Customer expectations are constantly evolving , and banks must adapt to stay relevant . This may require significant changes to business models and processes .
To overcome these challenges , banks must invest in modernisation initiatives , implement robust data security measures , and continuously monitor and adapt to changing customer needs .
By harmonising the customer value and business value sides of the banking flywheel , banks can create a sustainable path to growth and success . The flywheel effect can drive continuous improvement , enhance customer relationships and strengthen the bank ’ s competitive position .
By investing in technology , customer experience and operational efficiency , banks can unlock the full potential of the banking flywheel and thrive in today ’ s dynamic market . p
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