Digital banks have been presenting themselves as a financial product capable of revolutionizing a seemingly consolidated market. However, it is not enough to present yourself as a digital bank to succeed.
Care must be taken in technology, marketing and communication to convince the customer to take their money out from institutions they have known for years and deposit this capital into your enterprise. It is at some of these points that companies have failed, putting their activities at risk and scaring off investors.
To help you reflect on your business, we’ve decided to publish this article. In it, we cover the most common mistakes made by entrepreneurs in this niche – as well as showing you how you can avoid them. Interested in the subject? Keep reading!
1. Not being didactic about what a digital bank is
Younger customers can quickly assimilate the concept of digital banking. However, not all generations can differentiate these companies from traditional banks.
There are still those who think that a bank is already digital because it has a website or application – a marketing strategy common to all companies in this field.
There are also those who confuse digital banks with fintechs. Let us not forget the individuals still trying to understand what cryptocurrencies are, who believe that digital banks are directly linked to this exchange market.
Disregarding people’s difficulty in understanding what a digital bank is can greatly limit your company’s performance and penetration into attractive market ranges. Therefore, be clear and didactic about the services offered.
2. Not being transparent
Traditional banks are companies that have credibility with consumers. While not every customer understands that these businesses are made up of shareholder groups, the public views these banks as solid companies. As such, it is natural that these people are apprehensive about the solidity of a digital bank.
Without believing in this solidity, they can avoid migrating to these services. Therefore, the simplest way to reverse this scenario is to adopt a totally transparent stance.
Thus, if your bank offers a free account, for example, you need to explain to the customer why there are no fees. Some banks often make it clear that this attitude is necessary for them to be able to have capital to offer people credit.
At the same time, if your company is still operating in the testing phase, do not present yourself as a business consolidated in the marketplace. The customer may feel wronged.
On the other hand, by informing that your website or app is still being worked on, consumers may be motivated to test the service, as helping a company that is taking its first steps can be exciting.
Be sure to be clear about the name of the founders of the institution. Also, explain how the business operates, whether it is on the Stock Exchange and how it makes money. This is critical for a company to gain customer trust.
3. Not being prepared to manage image crises
A digital bank should have a well-trained communication team with clear strategies for dealing with potential image crises. With the speed with which information is shared, it is necessary to be precise when dealing with communication noise.
A failure in the bank app can become more serious if a rumor about the company emerges. Since many digital banks are publicly traded, this can cause the company a real problem, scaring off investors.
For some reason, there are banks that ignore the possibility of image crises, resorting to communication professionals only when they experience these problems.
Therefore, hire communication professionals to work directly at your bank, avoiding outsourcing this activity entirely. In addition, create crisis scenarios and test clear strategies to gain time when these issues occur.
4. Not having good customer service
Customer service should be performed with a focus on quality and user experience, as this customer will compare their experience with traditional banks and other digital banks.
In some cases, customer service may be the tiebreaker for a person to decide for one company over the other. In this era of social media, poor service can still create an image crisis for the bank, scaring off potential new customers.
5. Not offering state of art security
News reporting hacking or information leaks can frighten users of digital banks. Many of them do not understand how these processes happen, believing that it is safer to avoid digital and work with cash.
This scenario is reversed when a person starts using a digital banking service, realizing that it is secure. So don’t overlook the security processes, keeping up-to-date on the news released by fintechs.
6. Not offering personalized services
The banking services offered by traditional companies are not customizable – even though these companies want to convince the customer otherwise.
Digital banks have access to technologies capable of generating powerful reports through analyses that can reveal more about its customer than opinion polls.
This enables a digital bank to differentiate itself from its competitors by offering financial services more suited to people’s reality and demands.
7. Not managing your processes rigorously
A digital bank should not generate costly and inefficient processes. Many of these companies start out as startups – and that requires effectiveness.
Therefore, always use management software, as they are able to help your business operate in a modern, economical and secure way. Although a digital bank does not have the full physical structure of a traditional institution, it should at least have the same efficiency.
As we have seen, a digital bank cannot forget to align its communication, marketing and management processes with modern techniques that generate its services. It is necessary to be innovative in everything that makes up the company.
If you want to understand more about how management software can help your digital bank grow, contact our team. We are a reference in this market.