DBS Bank (formerly known as the Development Bank of Singapore) recently made an outstanding achievement as it was crowned as “World’s Best Bank of 2019” by leading global financial publication, Euromoney. The Bank’s tremendous success was largely accredited to its digital transformation which is recognized as one of the most comprehensive in the world. This is solidly proven as the bank also received Euromoney’s best digital bank in 2018, which was their second in three years.
Customer expectations are dynamically changing, and the financial service industry is not invulnerable to these ever-changing new demands. The expansion of social media, the utilization of big data, and the ability to find or buy nearly anything, anytime, and anywhere means that people are getting more accustomed to fast and personal experiences.
In digital transformation, digital technology is integrated into all areas of a business. This integration brings changes in how the business delivers value to its customers. In the banking industry, digital transformation is a way to provide better service to your customers. It can be dramatically cheaper when customers complete transactions on a mobile app, instead of in a branch. They don’t have to go to your office and spend time to queue in order to complete financial transactions.
Digital transformation is more than about providing mobile and online functionality. Conventional financial service providers need to combine digital speed and convenience with human interaction to provide innovation and thoughtful caring in the customer’s journey.
With a high increase in digital devices usages such as smartphones, laptops, and computers, this change brings a big impact on the people and the industry. General consumer’s behavior is changing due to this digital trend including the way they do financial transactions.
When was the last time you went to the bank physically and made transactions in there? A few days ago, several months ago, or perhaps never in your recent memory? You may realize that today’s people prefer to make a banking transaction through their smartphones. It’s because technology has left a huge impact on almost every area in our lives including the way customers interact with businesses, and in this case banks.
The economy growth in developing countries such as Indonesia and India increased in the last decade. Along with that, the development of fintech also increased. Alternative financing is needed to stimulate the economy. In particular, for the micro small and medium enterprises (SMEs). Since there are still many SMEs are having difficulties to gain access to bank, therefore financing models such as financial technology (fintech) is required to reach them.