What is the OTT effect? Why is it relevant in banking?
OTT platforms are setting the bar high by creating hyper-personalized experiences and AI-driven recommendations. Here, customers have the absolute power and flexibility to choose the type of content they want. Moreover, they will get recommendations based on their viewing pattern. By analyzing vast amounts of customer data available, the platforms can accurately predict and influence customer behaviour. As customer experience becomes the new battlefront, banks can personalize customer journeys and deliver higher engagement value to customers by leveraging behaviour-based customer insights and applying predictive analytics.
These days, rich, personalized, simple, intuitive, and resourceful interactions drive customer engagement and loyalty. Banks can tap into this strategy instead of the traditional mode of operating and competing based on the product, account features and interest rates. Banks that leverage data actively to provide personalized services are the ones that will lead the pack. Just like Netflix, the more a bank applies technology to mine customer data, the more it will learn about its customer’s transaction data and spending patterns. Offers based on customer behaviour, in all likelihood, will be lapped up faster by the customers. New-age tech like data-driven marketing, robotic process automation, AI and machine learning, cloud, APIs and apps, and many other tools is now available to provide an essential step towards banks’ digital transformation.
Banks and financial institutions have been notoriously slow to adopt new technology and combine engagement channels to offer their customers a streamlined and seamless experience. Banks often find it challenging to stitch together customer data that sits across several disparate systems. The key lies in establishing incremental and short-term goals that will drive a more sweeping change through the organization. And then partnering with a strategic partner who can help the various technologies, data-sets, and products to work together and maximize customer value.
Recently, the RBI introduced a new rule regarding auto-renewal payments to curb hacking and internet banking theft cases. With the new rule, the automatic deduction of payment will stop and the monthly transactional process will take place through the use of Additional Factor of Authentication. The primary objective of the framework is to protect customers from fraudulent transactions and enhance customer convenience.
The requirement of Additional Factor of Authentication (AFA) has made digital payments in India safe and secure. As banks and financial institutions embrace digital transformation and increase investment in technology to serve the always-on customer, data will be the key driverTweet