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How DXPs are transforming the banking industry in 2021

The sudden change that made progress possible

Over the course of a year, the pandemic has abruptly brought into focus just how far behind several companies are in their digital transformation journey. What was once taken for granted is now a hurdle to overcome. This is true for several industries, but more so for the banking industry, who has seen a slow but steady change in how customers bank over the last decade.

Suddenly, customers had to perform transactions that were once only possible in-person at a banking branch. This, for obvious reasons, has boosted the urgency to provide a truly unqiue digital experience for banking customers that is tailored to their needs. One up-and-coming way this has been accomplished has been through Digital Experience Platforms, or DXP for short.

A quick recap on what a DXP is

We have already discussed the topic in a previous article, but in short, a Digital Experience Platform (DXP) is an emerging category of enterprise software seeking to meet the needs of companies undergoing digital transformation, with the ultimate goal of providing better customer experiences. DXPs make it easier to contextualize your customers’ digital experiences. A good DXP should simplify how you make, manage, and monitor your customer experiences across any and all digital channels. A few tell-tale ways to know if a DXP is best suited for your business is if it allows you to:
 

  • Connect your experiences and systems for a single view
  • Create personalized experiences at every point in the journey
  • Customize your solutions quickly on a flexible platform

Increasing personalization in more channels can increase purchases by 500%

Foundational features of a DXP

Financial institutions of all sizes can benefit from utilizing a DXP designed specifically for the financial services industry, and some of these advantages include:

  • Actionable insight. DXPs connect internal operational systems with all digital channels, which enables customer data capturing, processing and profiling and provides a unified “360-degree view” of the customer or member. Comprehensive reporting gives managers a window into which campaigns are working and which are not.
  • Customer/member-oriented processes. DXPs can track customers, map their journeys and identify crucial bottlenecks and opportunities. This helps the institution offer more relevant products and services, ultimately leading to increased loyalty and retention rates. The ability to learn from past actions and information leads to the next step: use of machine learning to power targeted campaigns.
  • Open architecture. DXPs operate as an open platform, enabling disparate systems such as CRMs, contact centers and social media platforms to easily integrate with the solution, as well as easily integrate new technologies as they appear.
  • Controlling every channel. DXPs give the institution more control to ensure that each unique channel is consistent in content, feel and logic. Automating the content delivery across all channels frees up personnel to not only continue to create unique content, but also focus their attention on additional revenue-generating activities.
  • Immersive user experiences. For social apps such as Instagram, stories are a powerful medium, engaging and captivating over a billion of us each month. Stories stitch us together and each one of us has a unique one that belongs to us, personal, meaningful, and a part of the reality of who we are. Innovative DXPs are using immersive user experiences such as AI-powered financial stories as a medium to maximize user experiences and results.

A bank’s perspective: The transformative properties of a DXP

DXPs made specifically for banks are designed to manage the complete engagement-to-results lifecycle across all digital channels, ultimately driving:

  • Increased revenues. DXPs help financial institutions increase loans, grow deposits and issue more cards, all by engaging at the right time with the needed service.
  • Increased loyalty and trust. Providing resources customers need, like or want drives customer acquisition and retention. Institutions should consider integrating new rewards, financial education videos, critical community outreach initiatives, or nudges toward downloading apps such as bill pay, personal financial management, business banking, and more.
  • Decreased costs. Banks can eliminate siloed communications and redundant efforts with a single command and control center for targeted campaign management and analytics, which generates a higher ROI on their investment and eliminates unnecessary or redundant operational costs.
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