How Customer Analytics and Digital Technologies Drive Banks to Understand Consumer Awareness Towards Financial Inclusion

How Customer Analytics and Digital Technologies Drive Banks to Understand Consumer Awareness Towards Financial Inclusion

Yuvraj Sharma (SLK Global Solutions Pvt. Ltd., India)
Copyright: © 2018 |Pages: 20
DOI: 10.4018/978-1-5225-4035-9.ch005


In today's switching economy, customers' needs are changing and they are demanding more transparency, higher involvement, and clear communication in day-to-day banking processes. The rationale behind carrying out the present research is to identify the role of customer analytics in the new digital customer journey in terms of enhancing their engagement, loyalty, and satisfaction. The present research emphasizes opportunities that would accrue to financial institutions after demonetization and collecting large amount of demographics, customer transaction, and account-related data. Primary data was collected from 300 customers through a structured questionnaire to know their perceptions about the role of customer analytics and digital technologies to build their confidence and capability to use financial services. This study brings out the customer analytics trends and identifies the reasons due to which banks are struggling to keep pace with the increasing demand of both digital savvy and traditional consumers.
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In this time of heightened expectations world, it is essential for financial institutions to meet desires of customers by delivering superior experience to them. In the context of delivering sustained customer experience, banks are going beyond traditional customer services. However, financial institutions in developing countries like India are facing challenges to keep pace with their customers. The main aim of the present chapter is to be identified the role of customer analytics and adoption of digital technologies to enhance consumer experience and getting insights into customer’s data. This chapter provides detail about impact of use of customer analytics and digital technologies on various financial inclusion related activities such that customer insights, risk management, improve payment frond-ends, establish strong integration, framing policies and focus on high value activities. Researcher explored different challenges including change in polices, legacy control environment, absence of centralize data management system, lack of clarity on technology implementation and reacting too slowly to the needs of today’s ‘non-stop customers which are main hurdle in the path of adoption new technologies in banks. However, to overcome these gaps, the present Indian government is more concentrating on adoption of modern methods including mobile payment and online banking to reach wide audience. By using this, financial institutions would be able to enhance customer experience, manage enterprise risks, profiling of customers and established customized communications with people in a proper manner. On the other side, consumer account and transaction related data generated after demonetization decision taken by Modi’s government could be beneficial for financial institutions in framing polices and taps untargeted consumers. Furthermore, respondents views have been incorporated the study to identify opportunities generate for financial institutions after using analytics and producing large amount of data. It can be said that customer analytics and digital technologies can be useful in term of overcome financial inclusion gaps such that improving financial services for the poor, strengthening fraud detection and simplifying activation processes.

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