The banking and fintech sector in the Middle East and Africa (MEA) region is undergoing significant modifications to cater to the needs of digital customers. Even before the pandemic, proactive initiatives for digital transformation were already underway in the region, and these efforts have only intensified during and after the Covid-19 crisis.
According to a 2022 report on digital banking in the MEA region, three critical factors shaping the banking landscape are innovation, regulation, and technology. The UAE currently stands as the largest digital banking hub in the region, followed by Turkey and Saudi Arabia, The report predicts that by 2025, over 160 million people in the Middle Eastern region will be utilising digital banking services.
MoEngage’s global consumer trends 2023 report echoes a similar sentiment, revealing a 26 percent increase in Monthly Active Users (MAU) for banking platforms and a 29 percent growth in new customers for fintech platforms.
Embracing digitalisation for sustainable growth
These shifts in customer behaviour have compelled banks and fintech companies to establish firm digitalisation goals and focus on building customer connections through personalised approaches. Embracing digitalisation will enable banks to adopt a sustainable growth model, implementing new-age banking processes that enhance competitiveness and efficiency. To achieve this, there are several steps that banks can take.
Importance of seamless customer on-boarding
Improving customer on-boarding is crucial. A study indicates that eight out of ten customers delete an app if they find it difficult to use. Thus, the initial step towards ensuring a smooth customer experience lies in providing easy on-boarding processes.
This approach increases customer lifetime value, reduces churn, expands the customer base, and boosts revenue. Smooth on-boarding involves nurturing and assisting new customers in familiarising themselves with a service or product. Critical components of this process include educating customers about how the service/product can benefit them, explaining how their personal details (KYC) contribute to a customised experience, and communicating individually about product/service offerings.
Banks can employ simple, streamlined, and fully-connected platforms to facilitate seamless on-boarding journeys. These platforms enhance operational efficiency by empowering employees to prioritise time and resources for improved customer experiences. Consequently, banking becomes more transparent and personalised for customers.
Leveraging data and advanced platforms to create hyper-personalised banking experiences
Engaging customers through personalised campaigns is paramount. Our global consumer trends 2023 report reveal that 50 percent of digital banking consumers desire highly personalised experiences from their banks.
Similar to offline customers, digital customers also seek tailored services. Hyper-personalised banking involves understanding individual customer needs and preferences, and subsequently offering appropriate products and services. Banks and fintech companies can segment customers based on geo-location, gender, age group, or device.
Additionally, they can utilise advanced platforms and insightful data analytics, leveraging customer behaviour data such as browsing loan offers or examining credit card deals, to identify trends and serve customers better. digitalisation enables banks to launch individual marketing campaigns based on customer spending habits.
For instance, a bank might recommend customers with substantial savings switch to higher interest-accruing accounts, or increase the credit limit for customers who consistently utilise their full credit card limits. By analysing past transactions and employing machine learning algorithms to predict future behaviour, banks can perform these segmentations and adapt their offerings to meet specific customer needs.
Achieving seamless omni-channel experiences for today’s digital customers
Deploying seamless omni-channel campaigns is essential. Digital-age customers demand a consistent experience across different channels when accessing banking services. To offer an omni-channel experience, banks can identify the channels that customers frequently use for transactions, observe their banking behaviour, identify challenges they face, and understand their interactions across each touchpoint.
Armed with this knowledge, banks can establish the right touchpoints and seamlessly connect them, tailoring their campaigns to each customer. Successful banking in the digital age necessitates frictionless, smooth, and personalised services, with an omni-channel experience. To achieve this, banks must employ data-based consumer insights to unlock adaptability and deliver a seamless experience from customer onboarding onwards.
Advanced customer engagement platforms can help players in the banking, financial services, and insurance (BFSI) sector eliminate silos and achieve true seamlessness in customer engagement.
The modern Middle Eastern customer behaviour in the new digital landscape has prompted banks and fintech companies to adapt their services and strategies. The UAE leads as the region’s digital banking hub, with digitalisation efforts spreading across Turkey, Saudi Arabia, and others.
By focusing on improving customer onboarding, engaging customers through personalised campaigns, and deploying seamless omni-channel experiences, banks can navigate the digital landscape successfully, enhance competitiveness, and provide efficient and tailored services to their customers.