The world is moving, regardless of global recession. It is always time for a lot of industries and sectors to consider the balancing act for digital and physical channels. If the physical channels and the touch do not bring much more value, it makes sense to deliver via the digital channels.
For example, maybe what is needed is more ATM machines at strategic locations, rather than having more physical branches, but maintain only a few strategic branches for the really high value and touch business.
Same goes for the telco, maybe what they need is more partners to serve as the agent for new line provision, rather than telco opening more own branches. The same principle applies to other sectors and industries.
Another area we need to look into is the productivity gain, digital channels offer 24x7x365 always on, same for the ATM, compared with the physical branch staffing with people. If you factor in the help care and call center, digital got the online and chatbot, theoretically will be much more profitable in the long run, if the segment you serve is technology savvy and self-services. Same trend is happening now in different sectors and industries.
But purely digitalisation of your business channels will not work either, where some extent of physical channels are needed, where you need to decide for the high value segment to be served by your physical channels.
Surprising to say so, it yet to see banking can fully utilise mobile applications to deliver more services. Lot of the transaction, open account all needed to be done with the bank branch. Importance of capture and making sure users install the bank mobile applications is purely use for the check statement etc, which is totally a waste, compared with other sector and industry push for upsell, cross-sell more services to the existing user.
Fintech and insurtech can be benefit the bank and insurance company who know how to use it in the right way. Simply copycat competitors simply do not work. This is one of the reasons we saw a lot of new mobile wallet players in the market, where most of them are not owned by the bank, the consumer money that current drop in the consumer banking is actually shifting to the non-bank segment and channel, who provide handy services all from their mobile applications.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
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