The financial sector is undergoing a significant transformation, driven by evolving customer expectations and advancements in technology. Phygital banking, a term that merges “physical” and “digital,” represents the strategic convergence of physical and digital channels to create a seamless and personalized banking experience.
Why Phygital Banking Now?
Traditionally, banks offered services primarily through physical branches. However, recent studies show that less than half (46%) of all bank customers strictly use online/mobile channels for their banking needs. This highlights an ongoing preference for human interaction, particularly for complex financial decisions. Phygital banking bridges this gap by offering the best of both worlds:
Improved Technology: Advancements in technology are a key driver of phygital banking. These advancements enable financial institutions to seamlessly integrate physical branches with robust digital platforms, empowering customers to manage their finances through multiple channels.
Fintech Disruption: The rise of agile fintech startups has intensified competition in the financial services industry. Traditional banks are embracing phygital banking as a strategic response to stay relevant and competitive.
Post-2020 Shift: With a dramatic rise in mobile and online transactions, phygital banking addresses this shift by providing a cohesive and efficient omnichannel experience. As highlighted in a recent Accenture survey, a staggering 83% of global banking executives believe Phygital banking will be the significant differentiator in creating seamless transactions for your customers as technology evolves.
The Compelling Advantages of Phygital Banking
Enhanced Customer Experience: Phygital banking fosters a customer-centric approach. By integrating physical branches with enhanced and modern digital tools, customers can enjoy “anytime, anywhere convenience” while having the option for personalized human-to-human service. This can lead to increased customer satisfaction and loyalty.
Operational Efficiency: Phygital banking streamlines operations through self-service options such as ITMs/ATMs and digital kiosks. This frees up staff to provide more value-added services with a personal touch. Efficiency at this level undoubtedly results in cost savings, better comprehension and delivery of services, and a more productive workforce. Outsourcing the technology to experts can help financial institutions assess, plan and institute the best of emerging service technologies in a way that embraces the staff and prepares them to maximize your investment.
Data-Driven Decision Making: Phygital banking fosters data collection through various touchpoints. This data can be leveraged to gain deeper customer insights, personalize product offerings, and improve overall customer satisfaction.
Position your financial institution for future success. Deliver exceptional customer experiences, optimize operations, and build long-term customer relationships through phygital technology provided by integrators such as NuSource. Are you ready to take your institution into the future of finance?
Contact NuSource today for more information or assistance.
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