The digital transformation of banking constitutes one of the greatest advances in recent years. Digital banking, which started as a bonus service, has now evolved into a necessity in every bank’s agenda around the world. As consumers realised the convenience, flexibility and agility brought along by these digital services, the adoption rate has seen an upward trend. With the digitally-savvy generations coming of age, the manifestation of technological advancement across all aspects of our lives pose fascinating challenges and opportunities in the digital banking ecosystem.
With the surge in the number of non-financial firms entering the banking industry, conventional banks are feeling the pressure of having to keep up and strengthen their foothold. Evident from the recent announcement of the winners of Singapore’s first digital banking license's. Grab-Singtel consortium and tech giant Sea clinched the digital full bank license's. This challenges the banks to adopt a new mindset, business approach and innovative technologies to take their services to the next level. Read on to find out more on the 3 challenges faced by Digital Banking firms and how to leverage EPS Consultants’ Digital Banking Recruitment Services to overcome them.
Challenges in Digital Banking Singapore Faced with the constantly evolving demands of the modern consumer and stiff competition within the digital banking sector, financial firms are under more pressure than ever to adapt, innovate and stand out.
1. Building an online presence With all things going online now, it is no surprise that digital banking firms are relying on social media as their primary touchpoint with consumers. Social media marketing for banks has rapidly moved from a primarily social tool to an important solution necessary for building customer relationships and providing personalized consumer experiences. Considering the vast reach of social platforms like Facebook and Instagram, organisations are investing heavily in beefing up their social media strategies to streamline and simplify communication with their customers.
An example of online campaign introduced by Digital Banks is the hosting of live webinars on financial trends and tips, bringing value to customers at only a minor cost to themselves while driving brand awareness, customer loyalty and retention. On the surface, the challenge faced by Digital Banks is the development of a strong social media strategy to drive customer relationships, building tangible and intangible value. However, through our experience of working with clients in the digital banking industry, the underlying challenge lies in the recruitment of experienced digital marketers. A strong team of individuals who possess the requisite knowledge, industry experience as well as a creative mind plays a crucial role in driving online campaigns and achieving success.
2. Mitigating security risks
Following the utilization of social media platforms to accelerate client communications, it presents a new set of challenges – security and compliance. As with all online tools, they are open to malicious intrusions and staff negligence. It is also alarmingly easy for firms to post something misguided at best, a regulatory violation or caused a social upheaval at worst. Securing social media channels should be a priority and all communications are encouraged to go through a centralized monitoring system that detects violations of corporate policy and social regulations.
Moreover, the accelerated shift towards the digital realm poses more opportunities for cybercrime to transpire. The financial sector is the most targeted of all industries. Recent research conducted has shown that organisations in this sector are 300 times more vulnerable to cyber-attacks than any other. Digital Banks now are facing fresh security challenges and a myriad of security risks.
Advised by industry experts, ensuring and enhancing security should be one of the priorities of any players who wish to enter the digital banking industry. The failure to do so might incur huge financial losses and the loss of consumers’ trust which could be detrimental to the business. Investing in security measures such as firewalls, intrusion detection and prevention systems, and anti-malware systems are strongly encouraged. Implementing an API (application programming interface) approach to deliver security services would also help to achieve a more embedded security infrastructure.
Recruiting Cybersecurity professionals is also a key strategy adopted by Digital Banks in building their defence against malicious cyberattacks. These cybersecurity individuals are equipped with the knowledge and skills to spot potential security risks and put in place prevention mechanisms to counter these attacks. They are also tasked to ensure that staff in the Digital Bank are well trained and sufficiently prepared to respond to any security breaches.
3. Harnessing the power of Data
Digital Banks are blessed with vast amounts of data but their ability to interpret and extract value from this commodity is something they have historically struggled to achieve. Competing in the world of digital banking runs parallel to the ability to harness the power of data to provide a personalised and seamless experience for the consumers.
The main reason for the increase in adoption of digital banking services is the ease and convenience that technology has brought along. This shows the importance of a tailored and smooth experience in gaining an upper hand. Digital capabilities and improved customer experiences do not operate in a vacuum. In a digitally empowered world, Digital Banks must leverage the power of big data, AI and machine learning to understand consumer needs on a deeper level and provide customer-centric services. Data mining is one of the aspects most used by companies of different types of services today, and its results have been excellent. It even works as a way of knowing the needs of audiences outside the company.
Not only does the access to data gives Digital Banks the opportunity to introduce personalised services, but it also supports new innovative financial products and services. Financial institutions are able to allocate resources more intelligently and expand financial inclusion to new markets with innovative services. Extracting insights from such a large amount of data is a great challenge if employees are not well-verse and trained in that aspect. To accomplish this, many financial institutions are hiring data scientists and AI specialists to spearhead such initiatives. A strong team of data scientists will bring along advanced data analytics and data science techniques for extracting insights from customer data collected. This also encourages knowledge transfer within the organisation, educating existing employees on new and improved tactics.
Importance of recruiting the right talents in Digital Banking It is undeniable that recruiting top talents to support the different key functions of a Digital Bank is crucial in overcoming the challenges. Getting qualified and experience digital banking talents on board might pose as a difficult task especially when firms are competing in a tight candidate market.
Partner up with EPS Consultants, and tap on our network and candidate database to recruit top digital banking professionals in the quickest time possible. EPS Consultants is an award-winning recruitment agency with over 29 years of experience. Specialising in FinTech and Digital Banking industry, our consultants keep themselves abreast of industry news and trends, enabling them to provide timely advice to our clients