According to Capgemini, 76% of customers expect an omnichannel experience and 59% of customers expect on-demand, anywhere anytime customer service. It isn’t just about the convenience of mobile apps; it’s about creating a cohesive ecosystem where customers can seamlessly switch between various channels. 

Are you ready to dive into the world where banking meets brilliance? Let’s navigate the landscape of omnichannel banking and discover the future of financial services together!

What is Omnichannel Banking?

Omnichannel banking is a comprehensive approach to providing automated and integrated banking services across multiple channels, both physical and digital. It aims to create a cohesive and consistent experience for customers. Resultantly, customer can interact with their bank effortlessly through various touchpoints such as online platforms, mobile apps, ATMs, call centers, and physical branches.

In an omnichannel banking environment, customers can initiate transactions on one channel and seamlessly transition to another without any disruption. For example, a customer might start a transaction on a mobile app, continue it on a computer, and finalize it in a physical branch. They can complete all without losing any information or experiencing inconsistencies in the process.

Moreover, omnichannel banking includes a unified customer profile that is accessible across channels, consistent branding, and messaging. The integration of technologies like data analytics and artificial intelligence (AI) to personalize and enhance the overall customer experience.

It is driven by the desire to meet the evolving expectations of modern customers who demand flexibility, convenience, and a personalized approach to their banking interactions. This approach not only benefits customers by providing a seamless experience. Also, it helps banks to optimize their operations, improve customer satisfaction, and stay competitive in the rapidly evolving financial landscape.

Benefits of Omnichannel Banking 

In omnichannel banking, customers can interact with their bank across multiple channels such as mobile banking, online banking, ATMs, branches, and more. Here are some key benefits of omnichannel for banks and customers:

Customer Benefits

1. Seamless User Experience

When you switch from multichannel to omnichannel banking, you ensure a frictionless experience for customers by providing a consistent and unified journey across various channels. Whether accessing accounts through a mobile app, online platform, or visiting a physical branch, customers encounter a seamless transition without disruptions. 

This leads to increased customer satisfaction as users can effortlessly navigate and complete transactions.

2. 24/7 Accessibility

With omnichannel banking, customers gain round-the-clock access to banking services. Whether checking account balances, transferring funds, or making payments. Most importantly, users can perform transactions at any time through online platforms or mobile apps. 

This enhanced accessibility caters to the modern lifestyle. It offers convenience and flexibility to customers who may not adhere to traditional banking hours.

3. Personalization and Customization

Omnichannel financial services leverages data analytics to understand customer preferences, behaviors, and needs. This enables banks to provide personalized services and offers tailored to individual users. 

It can personalize product recommendations to targeted promotional messages and customers experience a banking environment that caters specifically to their financial goals and interests.

4. Efficient Issue Resolution

In an omnichannel setup, customer issues, and inquiries can be efficiently addressed across various touchpoints. Whether through online chat, phone support, or in-person at a branch, banks can seamlessly access customer information to resolve issues promptly. 

This efficiency in issue resolution contributes to a positive customer experience and fosters trust in the bank’s service capabilities.

Bank Benefits

1. Enhanced Customer Engagement

Omnichannel banking enhances customer engagement by facilitating interactions through multiple channels. Banks can engage customers through personalized communications, targeted marketing campaigns, and feedback collection. 

The ability to connect with customers across various touchpoints strengthens the overall relationship and encourages customers to explore additional services.

2. Operational Efficiency

Banks can achieve operational efficiency by integrating systems and processes across different channels. Reducing redundancies and streamlining workflows contribute to a more cost-effective and resource-efficient operation. 

This allows banks to allocate resources strategically. Ultimately, it improves the bottom line and ensures a sustainable and competitive business model.

3. Data-Driven Insights

Omnichannel banking platform plays an imperative role in generating valuable data on customer behavior, preferences, and transaction patterns. Analyzing this data provides banks with actionable insights into market trends, customer needs, and areas for improvement. 

This data-driven decision-making empowers banks to optimize their services, design targeted marketing strategies, and stay ahead in a dynamic financial landscape.

4. Competitive Advantage

Adopting an omnichannel approach gives banks a competitive edge in the market. As customers increasingly seek seamless, personalized experiences, banks can deliver on these expectations stand out. 

A comprehensive omnichannel strategy positions a bank as innovative and customer-centric to attract new customers and retain existing ones in a highly competitive industry.

Importance of Omnichannel in Retail Banking

Retail banks always need to stay relevant, competitive, and responsive to the evolving expectations of today’s digital-savvy consumers. Let’s take a look at some key reasons: 

1. Enhanced Customer Experience

In retail banking, delivering an enhanced customer experience is paramount. Omnichannel financial services ensure that customers enjoy a seamless and consistent journey across various touchpoints. Whether accessing services through online platforms, or in-person at branches. 

This unified experience contributes to higher customer satisfaction as users can effortlessly navigate through channels without encountering disruptions or inconsistencies. 

It goes beyond mere transactions and aims to create a positive and memorable interaction at every stage of the customer’s journey.

2. Improved Customer Engagement

The omnichannel banking platform provides multiple avenues for interaction. Retail banks can connect with customers through personalized communications, targeted marketing, and feedback mechanisms. The omnichannel approach enables banks to build stronger relationships with their customers. 

This heightened engagement translates to increased customer loyalty, as individuals feel more connected to the bank and are more likely to explore additional services.

3. Efficient Operational Processes

It is needless to say operational efficiency is a key advantage of adopting omnichannel strategies in retail banking. Banks can reduce redundancies and streamline workflows by integrating systems and processes across different channels. 

This optimization leads to a more cost-effective and resource-efficient operation for strategic allocation of resources. And, efficient processes contribute to quicker service delivery, faster issue resolution, and an overall improvement in the bank’s ability to meet customer needs promptly.

4. Competitive Edge in the Market

In fiercely competitive retail banking, having a comprehensive omnichannel strategy provides a distinct competitive edge. Customers increasingly seek seamless, personalized experiences, and banks that deliver on these expectations stand out in the market. 

A retail bank with an effective omnichannel approach is perceived as innovative, customer-centric, and forward-thinking. This competitive advantage not only attracts new customers. Also, it enhances the retention of existing ones to reinforce the bank’s position in the dynamic and evolving market.

Multichannel Vs Omnichannel Banking 

Multichannel and omnichannel banking represent two distinct approaches to providing banking services across various channels. 

Let’s take a closer look at the key differences between these two strategies:

Multichannel Banking

• Channel Isolation: Each channel operates independently. Online banking, mobile apps, and physical branches often function as separate entities, with limited integration.
• Siloed Customer Experience: Customers may experience inconsistencies when transitioning between channels. Information is not always shared seamlessly which is leading to a fragmented and siloed customer experience.
• Limited Cross-Channel Interaction: Customers may need to restart transactions when switching from one channel to another. For some customers it causes inconvenience.
• Channel-Specific Focus: Each channel is designed to cater to a specific set of services. For instance, online platforms may focus on transactions, while physical branches handle complex services.
• Operational Independence: Operational processes for each channel are often independent. This can result in redundancies and inefficiencies, as information is not consistently shared across channels.

Omnichannel Banking

• Unified Customer Experience: With omnichannel banking, customers can transit between channels without disruptions, as information is shared consistently.
• Consistent Branding and Messaging: Branding, messaging, and services are consistent across various channels. This creates a cohesive brand identity and reinforces the same level of service, regardless of the chosen channel.
• Cross-Channel Integration: Omnichannel banking emphasizes the integration of channels for a continuous and interconnected customer journey. Transactions can be initiated in one channel and completed in another without starting over.
• Holistic Customer View: This enables banks to offer personalized services and targeted marketing across all channels.
• Operational Harmony: Omnichannel banking platform allows for smoother workflows and optimized resource utilization by eliminating silos and redundancies.

How to Select an Omnichannel Banking Solution?

Choosing the right omnichannel banking solution is a critical decision for financial institutions, as it can significantly impact customer experience, operational efficiency, and overall business success. 

Here are some key steps to consider when choosing an omnichannel banking solution:

1. Omnichannel Customer Experience Evaluation

Before selecting an omnichannel banking solution, conduct a thorough evaluation of the omnichannel customer experience it promises to deliver. Assess how well the solution integrates and streamlines customer interactions across various channels such as online platforms, mobile apps, and physical branches. 

You should always look for features that ensure a seamless transition between channels, consistent branding, and personalized experiences for customers. An effective solution should prioritize enhancing the overall journey of the end-users.

2. Banking Technology Landscape Exploration

It is imperative to explore the banking technology landscape to understand the compatibility and alignment of omnichannel financial services with industry trends and emerging technologies. 

When you’re planning to select an omnichannel solution you need to ensure that the solution is built on robust and scalable technology. And. it is capable of accommodating future innovations. You can examine how the solution adapts to changes in technology, security standards, and regulatory requirements for long-term success.

3. Risk Tolerance and Cost Framework Establishment

Define your organization’s risk tolerance and establish a transparent cost framework before selecting an omnichannel banking solution. Also, consider potential risks associated with implementation, such as disruptions in services or data security concerns. 

Assess the total cost of ownership, including initial setup costs, ongoing maintenance expenses, and any hidden fees. Align the solution’s features and pricing structure with your risk appetite and budget constraints to ensure a financially viable and secure investment.

4. Potential Suppliers and Service Providers Assessment

Evaluate potential suppliers and service providers offering the omnichannel banking solution. Consider factors such as vendor reputation, reliability, and scalability. Assess their track record in delivering similar solutions and their ability to provide ongoing support and updates. 

Look for references and case studies to validate their success stories. This comprehensive assessment helps in selecting a vendor that aligns with your organization’s goals and values.

5. Strategic Planning for Seamless Implementation

Plan strategically for the seamless implementation of the chosen omnichannel banking platform. Outline a detailed implementation roadmap that covers key aspects like user training, change management, and contingency planning. 

Consider how the solution integrates with your existing systems and processes, minimizing disruptions during the transition. Define clear milestones, allocate resources effectively, and establish a communication plan to keep all stakeholders informed throughout the implementation process.

Challenges of Omnichannel Banking 

While omnichannel banking offers numerous benefits, it also comes with its fair share of challenges. Some of the key challenges include:

1. Integration Complexity

Achieving seamless integration across various channels, such as online banking, mobile apps, and physical branches, poses a significant challenge. Connecting diverse systems and ensuring a unified customer experience can be complex and resource-intensive.

2. Data Security Concerns

It involves the exchange of sensitive customer data across multiple platforms. Ensuring robust security measures to protect against cyber threats and unauthorized access becomes a critical challenge in maintaining trust and compliance.

3. Consistent User Experience

Providing a consistent and cohesive user experience across different channels is a challenge. Users expect a unified journey, and discrepancies in service, features, or interface design can lead to frustration and dissatisfaction.

4. Regulatory Compliance

The banking industry is heavily regulated, and ensuring compliance with various financial regulations across different channels can be demanding. Staying abreast of evolving regulatory requirements and adapting omnichannel strategies accordingly is an ongoing challenge.

5. Technology Adoption Hurdles

The rapid evolution of technology introduces challenges related to the adoption and adaptation of new tools and platforms. Banks must invest in cutting-edge technologies while ensuring that staff and customers can seamlessly embrace and utilize these advancements.

Present and Future Omnichannel Banking Trends 

Omnichannel banking trends are driving innovation and transformation to enable banks to better meet the evolving needs and expectations of their customers in an increasingly digital and interconnected world. Let’s find some latest trends below. 

Current Omnichannel Banking Trends

• Digital-First Strategies: Many banks are prioritizing digital channels, offering a seamless online experience and mobile banking applications to cater to the growing demand for convenient and accessible services.
• AI and Chatbot Integration: The integration of artificial intelligence (AI) and chatbots is becoming more prevalent, enhancing customer service by providing instant support, personalized recommendations, and efficient query resolution.
• Biometric Authentication: To bolster security and improve the user experience, biometric authentication methods, such as fingerprint recognition and facial scanning, are being increasingly implemented across various channels.
• Personalized Financial Insights: Banks leverage data analytics to provide customers with personalized financial insights, offering tailored advice, spending patterns analysis, and proactive financial management tools.

Future of Omnichannel Banking Trends

• Voice-Activated Banking: The rise of voice-activated devices is expected to lead to increased integration of voice commands for banking transactions, enabling customers to perform tasks using voice recognition technology.
• Augmented Reality (AR) Experiences: The adoption of augmented reality is anticipated to provide immersive and interactive banking experiences, such as virtual branch visits and enhanced product demonstrations.
• Blockchain for Security and Efficiency: Blockchain technology is expected to be further explored for its potential to enhance security, reduce fraud, and improve the efficiency of transactions across omnichannel platforms.
• Hyper-Personalization: The future of omnichannel banking involves hyper-personalization, where AI-driven algorithms provide highly individualized services, offers, and recommendations based on a customer’s behavior, preferences, and financial goals.

Conclusion

The choice of an omnichannel solution isn’t just a decision; it’s a commitment to revolutionize the way you engage with customers and navigate the technological frontier. 

As you select the omnichannel banking solution that aligns with your vision, you’re not just adopting technology; you’re embracing a future where banking is not just a transaction but a journey—a journey that’s seamless, engaging, and thoroughly strategic. 

You can start your journey and stay ahead of the competition with REVE Banking Chabot.

Bangladesh aims for 75% of local transactions to go digital by 2027, as a vision of a “Smart Bangladesh” by 2041. Notably, Nagad Digital Bank and Kori Digital have recently joined as newly licensed digital banks to start a new beginning.

In this exploration of Bangladesh’s digital banking landscape, we uncover the fusion of convenience and innovation, where the future of finance rests within arm’s reach. So, get ready to be amazed as we’re taking you to this fintech revolution propelling Bangladesh forward!

What is Digital Banking? 

Digital banking refers to the use of digital technology and online channels to provide a wide range of financial services to customers. Unlike traditional banking, digital banking operates in a branchless and virtual environment. The primary objective of digital banking is to enhance accessibility, convenience, and efficiency for users. It eliminates the need for physical branches and allows transactions and interactions through electronic means.

Additionally, digital banking has further evolved with the emergence of Neo-Banking. Neo-banks, or digital-only banks, operate exclusively online without physical branches. They leverage technology to provide innovative and user-centric financial solutions. The integration of Neo-Banking concepts aligns with the broader trend of using technology to transcend geographical limitations and time constraints to the evolving needs of a digitally connected society.

In digital banking, customers can access their accounts, conduct transactions, and manage their finances through secure online interfaces. Furthermore, it facilitates electronic payments and transfers that reduce reliance on physical currency. It often incorporates advanced security measures such as encryption, multi-factor authentication, and continuous monitoring to ensure the safety of customer information and prevent unauthorized access.

Digital Transformation Over Time in Banking

Digital transformation in banking has been an ongoing journey that has evolved significantly over time. The financial industry has seen a remarkable shift from traditional banking methods to fully embracing digital technologies. 

Here’s a timeline that highlights key developments in the digital transformation of banking:

1960s – 1980s: Early Automation

• Banks began to automate their processes with the introduction of electronic data processing systems.
• ATMs (Automated Teller Machines) were introduced, allowing customers to perform basic transactions outside of bank branches.

1990s: Online Banking

• Banks launched online banking services, providing customers with the ability to check balances, transfer funds, and pay bills over the Internet.
• The adoption of secure socket layer (SSL) encryption made online banking safer.

2000s: Mobile Banking and SMS Alerts

• The proliferation of mobile phones led to the introduction of mobile banking services.
• SMS alerts were used to notify customers about account activity and transactions.
• Online payment gateways like PayPal gained popularity.

2010s: Fintech Disruption

• The rise of fintech startups challenged traditional banks to offer innovative solutions for payments, lending, and personal finance management.
• Mobile banking apps evolved, providing features like mobile check deposits, P2P payments, and budget tracking.
• Regulatory changes, like PSD2 in Europe, encouraged open banking and data sharing between banks and third-party providers.

The mid-2010s: Blockchain and Cryptocurrency

• The emergence of blockchain technology and cryptocurrencies like Bitcoin created new avenues for financial transactions, particularly in the areas of cross-border payments and remittances.
• Central banks explored the potential for central bank digital currencies (CBDCs) as digital counterparts to physical currency.

Late 2010s – Early 2020s: AI and Automation

• Artificial intelligence (AI) and machine learning were integrated into banking systems for customer service, fraud detection, and risk assessment.
• Robo-advisors gained traction, offering automated investment advice.
• Chatbots and virtual assistants have become common in customer support.

Present and Beyond Omnichannel Banking and Personalization

• Banks are moving towards providing a seamless omnichannel experience, where customers can transition between online, mobile, and physical channels seamlessly.
• Many tech-driven banks are using Chatbots to provide a consistent experience across different channels to ensure that customers receive uniform information and assistance whether they are interacting through a website, mobile app, or other channels.
• Personalization is a key focus, with banks using data analytics to offer tailored financial products and services.
• Enhanced cybersecurity measures, including biometrics and multi-factor authentication, are being adopted to protect digital assets.
• Quantum computing and 5G technology may further revolutionize the banking industry by enabling faster data processing and more secure transactions.
• Decentralized finance (DeFi) and blockchain-based financial services could become more mainstream, potentially reshaping the industry’s infrastructure.

The digital transformation in banking continues to evolve, driven by rapid advancements in technology and changing customer expectations. As banks adapt to these changes, they are likely to remain at the forefront of innovation to offer increasingly convenient and secure financial services.

Types of Digital Banking Channels

1.  Mobile Banking

It allows customers to access their bank accounts and conduct financial transactions using a mobile device, typically through a dedicated banking app or mobile web browser. It offers features like checking balances, transferring funds, bill payments, and mobile deposits.

2. Internet Banking

It also known as online banking enables customers to access their bank accounts and perform transactions through a web portal using a desktop or laptop computer. It provides services such as account management, bill payments, and fund transfers.

3. Chatbot Banking

Chatbot banking brings convenience and accessibility to the financial landscape. This innovative technology employs artificial intelligence to enable meaningful interactions between customers and their banks through natural language conversations. It simplifies financial tasks, offering 24/7 assistance for inquiries, transactions, and personalized financial advice, all via a chat interface. Chatbot is revolutionizing traditional banking by providing instant, personalized support and fostering a more intuitive and user-friendly banking environment.

4. Online Payment Gateways

These gateways are digital platforms that facilitate secure online transactions. They are commonly used for e-commerce and allow customers to make purchases or payments electronically. 

5. Digital Wallets

It is also known as e-wallets are mobile apps or online platforms that allow users to store and manage their payment information, such as credit card details and bank account information. They enable quick and secure payments for a wide range of transactions, both online and in physical stores.

6. Online Bill Payments

Online fund transfer services allow users to send money to individuals or businesses electronically. These services include peer-to-peer (P2P) payment platforms, wire transfers, and interbank transfers. They offer a convenient and efficient way to move money between accounts.

7. Online Investment Services

It also known as robo-advisors or online brokerage platforms, provides individuals with the ability to invest in stocks, bonds, mutual funds, and other financial instruments online. They often use algorithms to offer investment advice and portfolio management services.

8. QR Code Payments

It involves scanning a Quick Response (QR) code with a mobile device to initiate a payment. This technology is commonly used for in-store and person-to-person (P2P) transactions, making payments swift and contactless.

Digital Banking Vs Online Banking: Key Differences

Both are closely related terms but have distinct differences in terms of scope and functionality:

1. Scope of Services

• Online Banking: It typically refers to digital access to your customer’s existing bank account through a web portal or a mobile app. It allows your customers to perform basic banking operations like checking account balances, transferring funds, and paying bills online.
• Digital Banking: It encompasses a broader range of financial services. It often includes not just basic banking functions but also more advanced services like investment management, budgeting tools, and even the ability to open new accounts online. It’s a comprehensive, all-in-one financial platform.

2. Access Points

• Online Banking: It is primarily accessed through a bank’s website via a web browser or a dedicated online banking app. It’s essentially an electronic version of traditional banking services.
• Digital Banking: It can include online banking but extends beyond it. It can encompass multiple channels, such as mobile apps, dedicated banking apps, fintech apps, or even integrated financial management platforms.

3. Interconnected Services

• Online Banking: It focuses on the core banking services offered by a specific bank or financial institution. It doesn’t necessarily integrate seamlessly with other non-banking financial services.
• Digital Banking: It integrates with a broader ecosystem of financial tools and services. It may provide access to third-party financial apps, investment platforms, and personal finance management tools to create a more holistic financial experience.

4. Customer-Centric Approach

• Online Banking: It is essentially a web-based version of traditional banking to offer convenience and 24/7 access to basic banking services. However, it may not always prioritize customer-centric innovations.
• Digital Banking: It is designed with a strong customer-centric approach. It often incorporates user-friendly interfaces, personal financial insights, and customized financial solutions to emphasize a more personalized and modern user experience.

5. Innovation and Integration

• Online Banking: It may not always keep up with the latest fintech innovations and trends, and its services can be limited to what the specific bank offers.
• Digital Banking: It is more likely to adopt the latest technological innovations, including artificial intelligence, blockchain, and open banking principles. It’s often more adaptable to evolving customer needs and preferences.

While online banking is a subset of digital banking, the latter offers a more comprehensive and technologically advanced suite of financial services. Digital banking leverages technology to create a more holistic, customer-focused, and integrated financial experience, often involving a broader ecosystem of financial tools and services.

Digital Banking Challenges and Effective Ways to Overcome

Balancing convenience with concerns about security and technological accessibility can be a big challenge for the customer. On the flip side, navigating cybersecurity risks, regulatory compliance, and integrating digital innovations within existing systems pose hurdles for banks embracing digital transformations. Let’s take a deep look at the key challenges customers and banks may encounter.

Bank Challenges & Solutions:

1. Cybersecurity Risks: Banks encounter escalating threats of cyberattacks and data breaches. Banks must ensure robust security measures and ongoing investments in cybersecurity infrastructure.

Solution:

• Investment in Cybersecurity: Continual investment in advanced cybersecurity measures, including encryption technologies, threat detection systems, and regular security audits to safeguard against cyber threats.

2. Regulatory Compliance: Adhering to ever-evolving regulations and compliance standards in various jurisdictions poses a challenge. It requires continual adaptation and resources.

Solution:

• Adaptive Compliance Frameworks: Develop flexible and adaptive compliance strategies to navigate changing regulatory landscapes and ensure adherence to evolving standards.

3. Legacy System Integration: Introducing digital innovations into existing legacy systems can be complex and costly. It hinders the seamless integration of new technologies.

Solution:

• Modernizing Infrastructure: Gradually modernizing legacy systems to enable integration of digital innovations. It ensures they complement and enhance existing banking operations rather than disrupt them.

4. Customer Support: Offering effective customer support can be a big challenge in digital banking. It involves addressing the demands for automated query resolution, timely responsiveness, and maintaining a human touch in a virtual environment.

Solution:

• Chatbot: Using AI-powered Chatbots for quick query resolution, implementing a well-structured knowledge base, and combining automation with personalized human assistance can enhance the efficiency and effectiveness of customer support in digital banking.

Current Trends in Digital Banking 

Several trends are shaping the landscape of digital banking. It’s important to note that the digital banking industry is dynamic, and new trends may have emerged since then. 

Here are some of the current trends in digital banking up to that point:

1. Open Banking and API Integration

Open banking initiatives, such as PSD2 in Europe, have promoted data sharing between banks and third-party providers through APIs. This enables customers to access a broader range of financial services and manage multiple accounts from a single platform.

2. Artificial Intelligence (AI) and Machine Learning

Banks are using AI and machine learning for enhanced customer service, personalized product recommendations, fraud detection, and credit risk assessment. Chatbots and virtual assistants have become common in customer support.

3. Biometric Authentication

Enhanced security measures, such as biometric authentication (fingerprint, facial recognition, and voice recognition), are increasingly used for secure access to mobile banking apps and online accounts.

4. Contactless Payments

The adoption of contactless payment methods, including mobile wallets (Apple Pay, Google Pay) and contactless cards, has grown significantly, especially in response to the COVID-19 pandemic.

5. Cryptocurrency Integration

Some banks are exploring or integrating cryptocurrencies and blockchain technology, offering services like cryptocurrency custody and trading to meet the evolving demands of customers.

6. Robo-advisors and Wealth Management

It continues to gain traction, providing automated and algorithm-based investment advice to customers. These platforms make investing more accessible and affordable.

7. Digital Identity Verification

Digital banks and financial institutions are investing in advanced digital identity verification methods to streamline the onboarding process and comply with regulatory requirements, such as Know Your Customer (KYC) checks.

8. Enhanced Cybersecurity

With the increased digital footprint, cybersecurity remains a top priority. Banks are adopting advanced security measures, such as multi-factor authentication and AI-driven threat detection, to protect customer data and assets.

9. Real-Time Payments

Real-time payment systems are being adopted in many countries, allowing instant fund transfers and reducing the time and cost associated with transactions.

10. Regulatory Compliance

Compliance with evolving financial regulations, including data privacy laws like GDPR and consumer protection regulations, is a significant focus for digital banks.

Key Benefits and Impacts of Digital Banking

Digital banking benefits customers by offering convenience, cost savings, and personalization, while it benefits banks through cost reduction, increased customer reach, and data-driven insights, leading to improved customer engagement and competitiveness in the financial industry.

Customer Benefits:

• Convenience: Customers enjoy unparalleled convenience with 24/7 access to banking services from anywhere. It eliminates the need to visit physical branches. Transactions, account inquiries, and even financial advice are just a tap away on their smartphones or devices.
• Efficiency: Digital banks offer swift and seamless transactions. Tasks like fund transfers, bill payments, and account management take mere minutes. It reduces wait times and bureaucracy associated with traditional banking.
• Personalization: These banks often leverage data-driven insights to tailor services to individual customer needs. With personalized recommendations to targeted financial advice, customers experience a more customized and relevant banking experience.
• Lower Costs: Digital banks typically have fewer overhead expenses related to maintaining physical branches. As a result, they often offer lower fees, higher interest rates on savings, and better exchange rates, providing cost savings and better value to customers.
• Enhanced Security: Advanced security measures, such as biometric authentication and encryption technologies, ensure robust protection of customer data and transactions to foster trust and confidence among users.

Bank Benefits 

• Scalability: Digital banks have the advantage of rapid scalability, as their operations are not tied to physical infrastructure. They can expand their services and customer base swiftly and cost-effectively to tap into a broader market without the constraints of brick-and-mortar limitations.
• Data Analytics: Access to vast amounts of data generated by customer interactions. They can leverage this data through analytics to gain insights into customer behavior, preferences, and trends. This information helps in refining services to create targeted marketing campaigns, and making data-driven business decisions.
• Agility and Innovation: Digital banks operate in an environment that fosters innovation and agility. They can quickly adapt to market changes, integrate new technologies, and roll out innovative services to stay ahead of the curve in meeting evolving customer demands.
• Reduced Operational Costs: Without the overheads of maintaining physical branches, digital banks can significantly reduce operational costs. This includes expenses related to property, staffing, and infrastructure maintenance. It allows them to allocate resources more efficiently.
• Accessibility and Inclusivity: It can reach underserved populations to provide banking services to those who have limited access to traditional banks. This inclusivity not only serves a societal purpose but also opens up new markets and revenue streams for the bank.

How is Bangladesh Adapting Digital Banking? 

Bangladesh is undoubtedly making significant strides towards embracing digital banking. A total of 52 domestic and foreign entities have applied to the central bank for the license to set up digital banks. The Business Standard reports that the Bangladesh Bank made a decision to approve digital banking licenses to two of the 52 applicants, as confirmed by a senior official from the central bank.

The two newly licensed digital banks are Nagad Digital Bank and Kori Digital. The Bangladesh Bank has granted permission to three other applicants to establish digital banking services with the support of various traditional banks.

Furthermore, there are three more applicants, who have the backing of fintech firms and other companies, who may also be granted licenses after a thorough six-month evaluation period to assess the performance of the initial two digital banks.

However, the question of whether it is fully ready for this transformation involves several key considerations:

• Infrastructure: The readiness for digital banking in Bangladesh hinges on its technological infrastructure. While the country has seen an increase in mobile penetration and internet access, there is still room for improvement, especially in rural areas. A robust and widespread digital infrastructure is essential for the success of digital banking.
• Regulatory Framework: The regulatory framework plays a pivotal role in shaping the digital banking landscape. Bangladesh has recognized the importance of digital banking, and its regulators have taken initial steps to facilitate the integration of fintech and traditional banking. However, continued development and adaptation of regulations are necessary to ensure security, consumer protection, and innovation in the sector.
• Collaboration: Collaboration between traditional banks and fintech firms is often the key to successful digital banking. Bangladesh is seeing some collaboration efforts, but fostering a culture of cooperation and synergy between these entities will be essential for the digital banking ecosystem’s growth.
• Security Measures: The proliferation of digital banking also brings security risks. Ensuring robust security measures and cybersecurity protocols is paramount to gain consumer trust and prevent cyber threats. Bangladesh needs to invest in advanced security infrastructure to safeguard its digital banking system.
• Consumer Awareness: An essential aspect of readiness for digital banking is the level of awareness and trust among consumers. People need to be educated about the benefits, risks, and how to use digital banking services effectively. Building this awareness is an ongoing process.
• Fintech Ecosystem: The development and growth of the fintech ecosystem play a significant role in the readiness for digital banking. The country has shown promise with its mobile financial services (MFS) providers like Rocket and bKash. The expansion of such services and the entry of new fintech players will further contribute to the readiness of digital banking.
• Education and Training: To fully adapt digital banking, Bangladesh must invest in education and training programs for its workforce to ensure that they have the necessary skills to operate and manage digital banking systems effectively.
• Regulatory Support: Regulatory bodies should continue to support and encourage innovation in the financial sector. They need to be agile and responsive to changes in the digital landscape.

List of Banks That Are Moving to Digital Banking 

There are 52 banks, that applied for digital banking licenses to the Bangladesh Bank. This list highlights 44 forward-thinking banks that have been at the forefront of this shift, actively embracing digital banking to offer their customers more convenient, efficient, and secure financial services. 

As these institutions continue to evolve and adapt to the digital age, they are setting new standards and shaping the future of banking for the better.

1. Alliance Fingular Islami Digi Bank PLC
2. Nagad Digital Bank PLC
3. bKash Digital Bank PLC
4. Digi Ten PLC
5. Digital Bank PLC
6. Upay Digital Bank PLC
7. JRF Digital Bank (BD) PLC
8. Japan Bangla Digital Bank PLC
9. Elegant Digital Bank PLC
10. Digi Bank PLC
11. North East Digital Bank PLC
12. Next Century Digital Bank PLC
13. Adhunik Bank PLC
14. Somriddhi Digital Bank PLC
15. Desh Digital Bank PLC
16. Shonchoy Digital Bank PLC
17. Smart Digital Bank PLC
18. Shompod Digital Bank PLC
19. North West Digital Bank PLC
20. Bijoy Digital Bank PLC
21. NUH Digital Bank PLC
22. Uddipan Digital Bank Ltd
23. UNO Digital Bank PLC
24. Shomoy Digi Bank PLC
25. Amar Digi Bank PLC
26. Zamzam-Islami Digital Bank PLC
27. Islami Digital Bank PLC 
28. Shuborno Digital Bank PLC
29. Ekota Digital Bank PLC
30. Sunam Digital Bank Ltd
31. Bangladesh Digi Bank PLC
32. Aalo Digi Bank PLC
33. Aasha DigiBank PLC
34. Delta DiGi Bank Ltd
35. Starline Digital Bank PLC
36. Shadin Digital Bank 
37. Sonali Bank
38. Agrani Bank
39. Janata Bank
40. Rupali Bank
41. Pathao Digital Bank PLC
42. Agami Digital Bank PLC
43. Artist Digi Bank PLC
44. Shetu Digi Bank PLC 

Conclusion

Digital banking isn’t just a trend; it’s a transformation that’s changing the way we interact with our money. From the palm of your hand, we can now manage your finances, invest, and make payments with unprecedented ease and security. 

Digital banking has put the power back in your hands to eliminate the need to stand in line or shuffle through piles of paperwork. It’s a revolution that’s inclusive, convenient, and future-proof, bringing financial freedom to your fingertips. So, as we ride the wave of this digital transformation, remember, that the future of banking is now, and it’s as close as your smartphone. 

But how to attract these potential clients?

The answer will be adding live chat solution on your website which allows your clients to talk to a live person in real-time on the website itself. It’s an undoubtedly great way of expanding your financial business.

Top 5 ways on how Live Chat Solution can help your business grow:

But how does the live chat service help in increasing the client base? Let’s discuss the top 5 ways:

1) Create a lead as a part of sales conversion

In the financial industry, one big problem is that its services are very hard to market online. Like other eCommerce store, you just cannot add a ‘Buy Now’ button under the offerings. But with eCommerce live chat service, people will get a better way to ask for more info. This way they can easily chat with your sales or support agents which may facilitate more sales conversions.

2) With live chat on website offer excellent customer support

Don’t always take live chat customer service as your sales funnel, its also the best way to stay in touch with clients, provide instant customer support and other info in order to make them feel like they are cared for and their concerns are being taken care of. A good example is how a chatbot for insurance helps automate support.   

3) Offer voice chat to give a more personalized touch

It’s a unique feature of live chat through which the customer can make voice calls to your support agents. It’s a great way for them to feel that they are getting some sort of face-to-face consultation. It gives them a personalized touch of someone actually talking to them. You can also rely on a chatbot for the banking industry and add a new dimension to personalization. In fact, a bot can be combined with live chat to enhance customer experience in the financial service.  

4) Use live chat customer service to introduce new services

Live chat customer support allows you to communicate about the upcoming products or services during or before ending each chat session with your clients. In this way customers also will know about the upcoming services and also can clarify all their doubts on the same.

5) Get instant customer feedback

When a client concludes the chat session, you can ask him/her to review his experience or provide feedback regarding your offerings. By adding live chat with website, you can get instant customer feedback which can help you to improve the quality of your products and support service.

In the competitive industry, where everyone is fighting to grab the market share, what an eCommerce business should do to survive? The answer will be: choose the right eCommerce strategy and market. In this ever increasing competitive world, for keeping stability in business, you have to aim for the right opportunityf.

Making a complete digital marketing strategy is the core of all business. Almost 90% of the total internet users use search engines to find out information and these have the huge capacity to drive traffic to your website. Still very few entrepreneurs know the basic rules to tap into this resource.

Proper SEO, engagement in social media channels, webpages with rich content, PR, Pay Per Click advertising are some of the major factors to be considered to get a good traffic on your website.

According to Mary Meeker’s 2014 Internet Trends report, because of the growth of smart phone usage over the past few years, now, 30% of the total mobile users are smartphone users. All of us know that, as a part of the larger retail and commerce industry, eCommerce is growing fast but do you that m-commerce is growing at an even faster rate?

If you fail to provide mobile friendly shopping experience to your customers, then you are missing something for sure. It will be a disadvantage for your business as well.

Source:  Google Mobile Ads Blog

The majority of the eCommerce business is also sufferingmainly because of the inability to offer real customer service in the online stores. Most of the online stores leave visitors alone to figure out products or services by themselves, which experiences like walking to an empty store without any sales person.

One solution for this could be adding live chat for eCommerce website. It specializes in offering real-time assistance to the website visitors and thus drawing most of the revenues by selling products to them.

If you own an online store and want to be differentiated amongst your competitors, here are the 10 eCommerce business ideas which you should keep in mind:

1. Deal with shopping cart abandonment

As an eCommerce business, you need to understand how online shopping cart abandonment signifies the loss of a customer who was going through the check-out process to buy products in an online store. There are several reasons due to which many people leave the shopping cart, some of them are:

• In case you are offering the same product which your competitors also offer, people will choose based on the price
• High shipping and delivery charges
• Hassle: If you ask for too much info/ forced registration
• Doubts like, “Will it fit me? “or “Can I return the product and get refund” etc
• Your website is too slow

So what will be the solution? Use live chat’s ‘Proactive Chat’ feature to engage with them proactively. It enables you to offer assistance at the right time and stop themfrom abandoning your website.

2. Offer instant assistance

People come to your website and may get confused with your products and offerings. Worried?

Add live chat solution to your website and start chatting with them to solve their queries. Live chat offers ‘Analytics’ feature which helps you to know your website visitor’s geographic location, IP address, country, past visits, etc. So now you can start personalizing chat sessions with them in their own way.

3. Be prompt

Implementing live chat assistance in your website’s checkout page will certainly bring great improvements in the sales conversion rates. At the buying stage, you want all your eggs to remain in your basket. If an egg jumps out with doubts like related to your delivery or refund policies, it can be caught and consolidated with the help of live chat.

Traditional support solutions like email or phone are not applicable in this context because of the high response time and they also include a media-switch which may lead to cart abandonment of the buyer.

4. Compete on customer service

In some cases, you may have a better set of product features than what your competitors offer, but you will find it very tough to tell your clients about the difference. So in that case,competing on customer service is often the best way to win.

Add live chat and enable your customers to chat with your agents whenever they need any assistance. Your excellent customer service may turn the game and make your brand most popular amongst all of your competitors.

5. Attractive product images and description

One single thing that would be considered for selling a product online is images. It also would not work vice versa if you design your eCommerce website with images but no product description. Don’t forget that people want to see it before they buy. One of the main ingredients of increasing eCommerce conversion rate is having high quality images of your products with description. Display your products from different angles and make them zoomable.

6. Offer multiple payment options

Seems good? But it has two issues:

• Because of the credit card info scandals, some people avoid using credit cards for online transactions (especially on a new website they are first time buying)
• As per the 2009 survey on 2000 online British adults, commissioned by Click and Buy, a leading internet payment system, 50% of those who regularly shop online said that if their preferred payment method is not available, they will cancel the purchase.

So, adding payment options like PayPal or Amazon payments, and COD (Cash on Delivery) mode makes you win over at least some of the customers you would lose otherwise.

7. Increase the trust for your business

Suppose you are not as big and popular as Amazon and you also don’t have the 6 digit budget at your hand for your eCommerce business strategy, monthly marketing and website development expenses.

Now, is it still possible to build trust and accumulate a loyal client base? Yes, it’s possible!

Start building strong and meaningful relationship with your clients. Be it a small or medium size online business, live chat will help you to take on the role of a friendly salesperson. It enables you to give a face to your online store and provide it with a sales person who can vow for your products and services.

8. Make your employees the product experts

When all of your employees will act as support, your customers will get their questions answered promptly.So make each one of your employees, the PRODUCT EXPERT.

9. Build an App World for your customers

According to a research, conducted by comScore’s Media-Metrix® Multi-Platform, “Consumers spend 51% of their digital time using apps as compared to mobile web at 9%.” So, an eCommerce enabled mobile app is very necessary to offer your customers a top-tier purchasing experience. Without it, you are surely going to lose sales.

So Opt for it today. Apart from that, as mobile is becoming more popular, you should also make an effort to make sure that your eCommerce website is also mobile responsive. As per Google, if your website is not mobile friendly and misconfigured, you may see a drop in your search engine rankings.

10. Deliver what you promised

Your customers don’t want you to do impossible things for them. All your customers want is to get what you promised. So deliver your products on time with a big smile.Don’t make them disappointed.

For example, once I ordered a dress from an online shopping site. They promised me to deliver the same with 7 ways. But I did not get that within their promised time. After waiting nearly 2 weeks I cancelled that order and never visited the site. So you see, keeping your promise is very important for e-commerce customer retention.

In eCommerce business, the big giants have a huge advantage over you- They are known. Now they don’t need to fight for trust and security issues like most of the small and medium sized online stores because they have already built their loyal customer base. People are already confident about their products and services.

You still need to go a long way to win customers’ trust. So follow your own eCommerce business ideas and try to learn from those big giants. Just don’t copy them.

Recommended for you:  6 Ways To Boost Your eCommerce Sales

If you own an online store, you may have seen the natural tendencies of most of the customers: they want to communicate, need advice, help and require clarifications regarding your products and services. This can be a crucial issue in any kind of business if one fails to provide all these. To improve the scenario and provide better customer assistance, live chat solution can be the best solution on your website which can make you the differentiator for turning your website visitors loyal to your brand and not to choose your competitors over you.

Today, the customers who visit your website for shopping, feel the need to interact with someone who can assist them to choose the best product from your website as per their requirements. This is the main reason why having an expert available on your website through live chat can be a very appropriate advantage for you over your competitors. It’s just like being attended by a sales person while shopping in a normal brick and mortar store. With this live chat for ecommerce, you can make your customers feel special, they will be satisfied and encouraged to build a relationship with you. And this is for sure may lead to customer loyalty.

Benefits of live chat for ecommerce website:

Offer instant assistance

Live chat ensures instant assistance that a ticket or email system always lack. There are times, when after selecting any product, the customer may want to know some additional details of that product, for example the exact colour or size measurement which is not available in the website In that case, writing a mail or waiting in the queue for a telephonic call may turn the customer impatient and you never know he/she may leave from there. Instant response from the live chat support agent will eliminate the scope of leaving your website in the middle of shopping.

Assist with technical issues, related to your website

Many times, your customers may face several technical issues such as failure in online transaction, slow internet speed, broken pages for which they need to talk to a live person in your website. Live chat offers Click to Call, a distinct feature which provides voice call. With it, by just clicking a button, website visitors can directly talk to your support agents.

Get instant customer feedback

Now you don’t need to struggle any more to get customer feedback. You can make use of the live chat’s Triggers and Proactive Chat invitations to start a friendly conversation and gather customer feedback more efficiently. With another feature- offline message, your customer can get in touch with you even when you are offline. They can send offline messages which your support agent will get when they come online. So through live chat for ecommerce website you can assist those customers who came on your website when your support service was not available.

Keep a track of your visitor’s activities

Live chat helps you to monitor your visitor’s activities on your website with its features- real-time visitor monitoring and reporting. Now you can monitor your website visitors in real-time, you can get reports (day, week and month basis) on the number of chats, page visits, total number of visitors, their IP address, Countries, geographic locations, past chats etc. These statistics also can be filtered on agent basis to have an idea about your support agent’s performance.

Increase sales conversions

Knowing how your chat agents are performing is very important to understand the quality of your support service because it influences your customer’s buying decision. Live chat for ecommerce makes the whole process easy. Its Chat Monitoring feature enables you to check the previous chat history of your support agents and helps you to have an idea about their performances.

Apart from that it also provides an overview of every visitor- past visits, previous chat, and time on site. An agent can use these info to start the conversation in their own context and then decide what will be the right offer to give. It could be an up-selling or cross-selling opportunity or coupon code that may improve sales conversion rate.

Cost effective

Setting up the best live chat software for ecommerce is very easy. While a phone operator can serve only one customer at one time, a live chat agent can handle multiple chats thereby decreasing the human resource expense. Apart from that, its Queuing feature, enables you to specify how your incoming chat requests will be handled when all your agents are busy in assisting others.

It gives information to your website visitors regarding their waiting time in chat queue and sets accurate response time expectations.Apart from that if your agents are too busy in handling others and people are waiting in chat queue for a long time, as an admin also you can start providing support to them from your dashboard itself.

So implement the best live chat software for your ecommerce business today and see the difference.