· Bank digitization trend interpretation
· Problems and challenges facing the digital transformation of banks
· Suggestions on path planning of bank digital operation system construction
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First, bank digitization trend interpretation
The Report on China’s Banking Services in 2020 released by China Banking Association reappears the development achievements of banking financial institutions in 2020 from the aspects of service culture improvement, service channel expansion, process integration and optimization, service to the real economy, product innovation and development, consumer rights and interests protection, development challenges and opportunities, etc. In terms of electronic banking and digital transformation of branches, there are two conclusions:
First, the trend of mobile electronic banking is obvious. From 2018 to 2020, the average turnover rate of electronic channels in the banking industry, namely the check-out rate, has been increasing year by year, and the growth rate of mobile banking transactions has been higher than that of online banking transactions.
Second, the innovation and digital transformation of bank branches has been accelerated. Data show that the number of bank branches continues to decline. With the transformation of the Internet and information technology, innovative self-service equipment of branches is gradually recovering growth.
At the beginning, retail banks were mostly centered on business outlets until the emergence of ATM self-service banks, which broke the limit of business hours. The emergence of bank on the net, realized the breakthrough of dimensional limitation again… Nowadays, mobile banking is popular, and some branches begin to upgrade VTM to provide customers with mobile, online and self-service financial services. We can foresee that with the development of technological capabilities such as Internet of Things, 5G and edge computing in the future, the digital capabilities of banks will be further enhanced. It can also be said that the future banking service will be a ubiquitous and open digital financial service.
From the perspective of external competition environment, Internet giants have been holding licenses to layout the financial market, taking the young long-tail customers of current banks as the core target customer group, accelerating disintermediation pressure in the three scenarios of debt, assets and payment. From the perspective of internal environment, the banking financial service model has shifted from seller’s market to buyer’s market and gradually from traditional bank to digital bank, accelerating the banking industry’s in-depth thinking on operation, process, scene construction, product iteration, precise risk control and other aspects.
Based on the consideration and improvement of the above five capabilities, many banks embarked on the road of digital transformation relying on the power of fintech. For example, Bank of Communications has embarked on platform construction based on open ecology. First, through the construction of customer label portrait system, the entire data capacity has reached PB level, and the daily amount of label adjustment has reached 100 million times, which has promoted the business process to a large extent. Then through the construction of user growth system, to achieve user life cycle operation, based on event-based personalized product mix and precise marketing scenarios, the real implementation of marketing strategy; Finally, in the aspect of open ecology, it connects with the service scenes of external Internet platforms to create high-frequency life scenes and low-frequency financial service models.
On the whole, the strategic transformation of the banking industry aims to reshape the business model and value curve. On the one hand, it reduces the dependence of business development on media and creates financial scene ecology through online and offline integration. On the other hand, it strengthens the value support of data process to maximize customer value. As shown below:
Through in-depth insight, we can summarize the development trend of banking business in five points:
Demand fragmentation. Quick capture of customer needs is very important for customer mindbuilding and fast reach.
Marketing precision. Advocate marketing as a service, rather than disturb, as far as possible through customer portrait description, make marketing more accurate.
Service intelligence. Based on the prediction of customers’ behavior and the judgment of potential needs of customers, such active, real-time and even more than expected intelligent service can effectively improve customer satisfaction.
Channel productization. Create the ultimate communication experience, increase the channel contact points, cherish the communication opportunities with customers, and through connecting with customers to timely obtain customers’ response and feedback, to guide customers to a more positive aspect.
Ecology of the scene. To build service barriers with scene advantages, it can have its own foothold in the future when “banking services are everywhere” in the cross-platform and borderless convergence.
Ii. Problems and challenges facing the digital transformation of banks
Based on the above trend analysis of banks, we can find that banks will face the following five major problems in the process of digital transformation:
1. Data governance
(1) The quality of data source is worrying, data collection on various platforms is not standardized, and customer data is redundant
(2) Label data management is disorderly, and there is no unified standard for decentralized management by multiple departments
2. Customer operations
(1) The growth path of customers is not clear, and the means and methods to promote the growth of customers are not rich
(2) Hierarchical and group operation ability needs to be explored, and cross-selling and strategic coordination needs to be strengthened
3. Product experience
(1) Lack of system stability and fluency, and lack of effective monitoring and optimization of user experience
(2) Serious leakage of process breakpoint link and insufficient financial output capacity of scenarioalized
4. Total score linkage
(1) The use of new integrated marketing tools is insufficient, and the middle and background cannot support front-end marketing with unified strategies
(2) Marketing promotion is short but not long. Online marketing means cannot adapt to the operation of branches
5. Online and offline linkage
(1) Linkage operation and management lack of overall planning, scattered functions, lack of unity of rights and responsibilities, and difficult integration of resources
(2) Mismatch of online and offline resources, human financial management resources main wiring, and customer behavior to online migration
Based on the experience of serving more than 30 banks, Shence data divides the digital transformation of banks into three important stages:
Basic stages: data scattered in various system, chimney type architecture, data to be more independent, data island phenomenon, specifically the data size is differ, the quality of the data, including data application limitation, extraction time, produce the low such as aging, the behavior of customer data is lacking, and no professional data on the organizational structure of the bank team.
Insight analysis stage: This stage has completed the transformation from “no number” to “see number”, but there may still be a lack of data analysis ability and in-depth data value mining ability on the business side, such as lack of systematic construction and application ability of customer portrait.
Efficient operation stage: Based on data foundation and data analysis and insight ability, the bank’s business strategy is in scattered touch, and a complete business operation system has not yet been formed. Specifically, customer growth of the whole system, and customer loyalty programs are not built, lack of unified whole business strategy and operation operation mode is still in the artificial or half artificial state of the configuration of the on-line management, needs to improve operating efficiency and quality, digital operations personnel from repetitive, mechanical liberation in the scene, Add some creative business strategy A/B testing etc.
In the above three stages, there are certain differences in the digitization process of each bank, which requires banks to carry out targeted project construction based on their own development situation.
Iii. Suggestions on path planning for the construction of digital operation system of banks
At the present stage, the goal of digital operation of banks is mainly to build a customer operation and growth system, improve the size, activity and value of the bank’s existing customers, promote the construction of ecological online and offline operations, and build a data-driven corporate culture, centering on the double-factor growth mode of financial assets and data assets.
The following figure shows the customer-centered digital operation system of the bank:
The path of its landing construction mainly consists of four steps, which will be described in detail next.
- Consolidate the data foundation and build the whole bank index kanban system
Consolidating the data base mainly includes the following three parts:
(1) Data acquisition
For most banks, they have their own core business data and user data. It is an important work in the stage of data acquisition to integrate customer behavior data with multi-data sources of intra-bank business and to achieve data integration and eliminate data islands.
(2) Data processing
Data processing refers to providing visualized, autonomous and automated open data analysis capabilities as far as possible, opening the capabilities of data visibility, operation and early warning to business operators, and improving the efficiency of data collection and application.
(3) Data application
In terms of data application, we advocate SDAF, an enterprise operation framework based on data flow, to perceive customers and their behavioral needs, quickly form more efficient and scientific decisions, accurately reach users, and then complete comprehensive and real-time data feedback to drive the optimization of business strategies.
2. Subdivide business customer groups and build a label portrait system for the whole line
Build the customer portrait center of the whole bank, manage and maintain the customers of the whole bank through the construction of label system and behavior portrait platform, and truly achieve the goal of one bank and one customer.
At present, most Banks have their own system tools carrying customer labels and portrait class data, has taken many forms, but the lack of systematic, this label because the customer is usually based on the business of bank management main body, such as a line of business to do a bank activities, will be directed to carry labels with IT students development needs, customized development cost is higher, Moreover, the validity period is often short and the reusability is poor. As a result, the bank seems to have many labels, but most of them are isolated islands of labels. It is difficult to dredging each other and the value of labels is greatly reduced.
In addition, for most banks, there is no lack of customer data and business data. As an important jigsaw puzzle of basic bank data, user behavior data has been gradually paid attention to by banks, and they can gain insight into customer preferences and real needs through process data. For example, a customer completes a top-up transaction. In the past business analysis scenario, banks would usually assume that the customer has a certain preference for the top-up scenario. However, through the process data analysis, we found that the customer used large coupons in the top-up transaction, so to some extent, the user’s preference should be coupons, and top-up is just a scenario of using coupons. Therefore, we can think that behavioral data can more clearly reflect the real intentions of customers.
As for the construction process of the whole label system of the bank, we can help the bank to realize self-service, visual and efficient application of label production and label extraction, greatly reduce the time-effectiveness of the traditional process of raising numbers, and help the bank to quickly implement the business operation strategy.
3. Precipitate business strategy and build three-dimensional business operation system
At this stage, it is necessary for banks to truly build the entire operation system, that is, to build the bank-level operation center. Through the construction of digital marketing strategy platform, the three-dimensional operation system can be built and the output of unified operation strategy can be achieved. Mainly manifested in the following four aspects:
(1) All-channel digital online drainage to improve customer acquisition ability
Through the multi-channel tracking capability of Strategic data, banks can accurately identify customer sources, as well as the subsequent behavior performance and business transformation effect of customers from different sources. In addition, the cross-channel One ID mapping capability can help banks identify the information matching of users accessing different channels and confirm the same customer attributes, laying the foundation for the realization of ubiquitous banking services.
(2) Full-link digital activity operation to improve guest capacity
Based on digital capacity construction and output, business data, data assets, assets services, the whole process to improve the active operation of customers. In the whole process of activity operation, focus on activity review, realize the real-time response of the activity to reach customers, the real-time review of the activity effect, and the real-time optimization of the activity strategy.
(3) All-round digital customer operation to accompany the customer life cycle
Combined with different life cycle stages of different customers to formulate business strategies, around other customers without customers, new users, shallow users, in-depth users and other dimensions of stage division, to build a customer growth system; Through the precipitation of business strategy, quickly implement innovative strategic ideas, control the effect of marketing plan, show the operation strategy from a global perspective.
(4) Full contact digital product operation, continuous attention to customer experience
Based on the HEART model of customer experience, the business index system is constructed to return to the origin of customer service.
4. Optimize organizational structure and establish enterprise-level data-driven culture
The data management committee can be established within the industry to be responsible for the construction of data-driven culture and business innovation culture of the enterprise, and to enhance the overall data culture awareness; Build a professional digital team of data + business by cultivating data type talents.
Against the side of the business data analyst talent introduction and training, advice from the general education, technology, data and business four big aspects, according to analysts’ training target and work scenarios, map, an analyst at training stage and the curriculum system, digital operation transformation for Banks to provide strong YeWuXing, data application system data analysts professional talent training scheme. More importantly, the implementation of digital transformation projects can combine the business characteristics, business scenarios and real cases of mainstream industries to train the team, cultivate digital talents, and empower banks to realize data system construction and best practices.
Finally, based on the above four-step strategy and practice implementation, we hope to help the bank to realize the leap of digital operation level in the product service layer, activity operation layer, user operation layer, scene layer and ecological layer.
This sharing ends here, hoping to help more banks in the construction of digital operation system!
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