Even with the rapid scientific and technological development of the modern world, not all fields of our everyday activity are quite forthcoming with the implementation of the achieved progress. The traditional banking system, for example, is still somewhat outdated, hence, any large-scale change is problematic execution-wise. The reality is that companies that are participating in the financial industry have to be as adaptive to the ever-changing customer experience as possible, which means a complete modernization of the existing programs, services, and offerings.
Implementation of contemporary innovations is set to reduce costs and losses associated with the operation of the financial company, as it improves one’s reputation and produces value for the end consumers of the products.
Trends of the Financial Industry
Essentially, the innovations in the field of finance are based around improvements targeted towards the customers, however, often it is more problematic for larger corporations. Due to the larger scale of the established organization, they would need more time and funds in order to adapt, which results in an operational inconvenience.
If an organization doesn’t innovate, eventually, it will be outperformed by its competition in the eyes of the customers, who are continuously looking for digitalization of their everyday financial services, such as:
- bank account opening;
- payment card issuance;
- customer support, etc.
Global technological powerhouses, such as Apple and Google, have already engraved their position in the market and begun extending their service spectrums far beyond software development, tapping into the field of finance, specifically digital wallets, lending, and payment cards. In comparison to the traditional banking systems, these organizations are less regulated, allowing for a more flexible approach.
Because of the evergrowing competition in the financial market, traditional banks were forced to move further into the digital space, expanding their service portfolio with virtual payment solutions, online banking capabilities, and mobile applications.
Inevitably, the global crisis has also significantly affected financial institutions, as the banking industry was faced with rising production prices, including the shortage of chips necessary for the manufacture of payment instruments. Additionally, the needs of the customer have also transformed, putting more emphasis on digital experiences and fewer in-personal interactions with the bank’s representatives.
The aforementioned global crisis and ever-changing expectations of customer experience represented the driving force of the change. Wallester was one of the first companies who addressed the set trend by beginning to offer its clients physical and virtual cards issue in the most efficient and innovative way possible. To learn more about the company and its services, as well as the unique platform that enables the launch of individual card programs, visit wallester.com.
How to boost one’s competitive advantage?
To stay competitive in the new digital state of the market, financial institutions have to significantly reduce costs and modernize their digital offerings. They must face the demand of modern consumers and adapt flexibly to future market changes to come. Listed below are three approachable solutions that will help any financial organization to take on the competition from non-banks, enhancing the customer experience for their card products along the way.
Innovative software implementation
The card issuance platforms of today are equipped with immensely powerful analytics engines. The customer information captured by the set engines will represent a concrete solution to any analytical and operational challenge faced by the organization, improving its present operations.
The launch of a payment card program enabled through the aforementioned innovative platforms of today will provide the organization with the following benefits:
- efficiency increase;
- control production aid;
- timely execution of the production goals;
- data provision directed at specified improvement plans;
- perfection of the company’s operating mechanism.
Card issuing companies dedicate a majority of their available resources to the development and constant improvement of the software that keeps track of the listed benefits. In the eyes of the set companies, the simplicity of use of the dedicated software stand in line with its technical capabilities, hence, various issuers are in constant competition to make their solution as simple as possible, enabling their client companies to be more productive, while keeping their services affordable and of the best possible quality.
Service portfolio expansion – virtual cards
Financial organizations of today can greatly reduce the cost of their services for the end customers by incorporating virtual cards into their product portfolio. Virtual cards have plenty of advantages over physical ones, such as:
- instant issuance;
- bypass time-consuming activation process;
- ability to issue a physical card as an addition to the virtual one.
By incorporating both virtual and physical cards into the workflow, clients gain more opportunities for available payments. They also boost the confidence in their payment instrument provider, as in case of any problems related to the physical card, they can always count on the virtual one.
Moreover, there is a possibility of some clients exclusively using virtual cards. It is an additional opportunity to save production costs associated with the manufacture of the physical payment card. Lastly, this virtual-only approach would greatly benefit the environment, as there would be no associated waste.
Self-service tools integration
It is essential to provide one’s customers with sufficient tools that would allow them to effectively manage their payment cards. The set tools will not only allow to meet the clients’ needs but also significantly reduce costs on the program maintenance for the card issuer. The essential functions that any digital card management tool should include:
- card management;
- authentication setup;
- limit settings;
- PIN change;
- token management, etc.
By providing cardholders with effective management tools, card issuing companies reduce the cost associated with having dedicated staff members execute functions of the above-mentioned list of features. Traditional banks that would follow the outlined recommendations have a greater chance of staying competitive in the digital market of today. Finally, the updated operating model would have to put more emphasis on customer relationship development, rather than just meeting the basic needs of the existing cardholders.
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