What Hybrid Banking And Hybrid Customers Mean For Your Business in 2021?

Hybrid Banking

Hybrid banking combines digital and in-house services to create a customer-centric financial ecosystem. This form of banking allows customers to receive services regardless of the method they prefer to use. The new era of hybrid banking does not exist in a vacuum.
Instead, market demand and a new banking customer, the hybrid customer, are driving it. Whether customers visit an in-house branch or access services online, the updated client in the banking business demands flexibility, customer service, and personalization. Keeping this in mind, let’s shed some light on everything you need to know about hybrid banking, hybrid customers, and their significance for businesses.

Perks of hybrid banking for businesses and customers

In order to understand the hybrid banking structure, you need to understand the several approaches involved in the hybrid banking process. Hybrid banking involves:

● Signing up online and completing KYC.
● In-house onboarding, along with KYC that can be done digitally on a smartphone.
● Online loan applications and in-house banking.

Therefore, hybrid banking is any combination of services given digitally or physically to make banking more accessible to customers. Now that you’re familiar with how hybrid banking works, let’s dive straight into the numerous benefits it offers.

Instant banking services

In general, digital technologies are less expensive and cost-effective than manual alternatives. Automation also allows you to accomplish complex procedures more quickly and precisely. Take loans, for example. Auto loan servicing software solutions can reduce the workload drastically.

Loans are complex financial products that require accurate calculations to assure theirviability. So, automation allows you to analyze the risk, loan status, complete KYC, and give a competitive loan to your client much faster than you could if you did it manually.

Better customer service and employee satisfaction

Don’t try to go back to the pre-Covid-19 era. Instead, accept that change is unavoidable, and banks have to adapt to the ever-changing environment. This could result in more staff shifting to customer service roles while working remotely in the hybrid model. In the business world, this might mean better customer service, employee satisfaction, and increased productivity.

The new hybrid customers and their requirements

Flexibility

 

The new hybrid client expects more services to be provided digitally. The flexibility offered by providing banking services digitally is underrated. Since a hybrid customer’s banking requirements extend to all aspects of financial management, services being offered digitally is the only way to meet these requirements.

Increase accessibility

 

Hybrid banking can fill the gap and provide service access that goes beyond any barriers. Whether it’s assisting the unbanked in becoming banked or delivering to someone with a disability who can’t get to a physical location, hybrid banking can help with it all. The banking industry must recognize that clients come from a variety of backgrounds, and they must tailor their services accordingly.

Merge online and offline services

 

For maximum efficiency, hybrid customers require online and offline services merged. By using such a combination strategy, you can check all of your clients’ demands. This means consumers can mix and match how they use your bank, providing them a lot of freedom and helping them to be more efficient in their life.

In addition, this gives you a competitive advantage over other providers that are unwilling to expand their services.

Responding To Modern Market Demand

Banks are finding themselves in an entirely new financial service arena in terms of market demand. This is due to the rapid acceleration in investment in digital strategies. As a result, banks have increased contactless payments by 41 percent, 23 percent of banks introduced digital ID and verification, and 34 percent implemented fully digital processes owing to Covid-19 as of summer 2020.

Moreover, clients are increasingly seeking the option to get service in a way that works for them, whether it’s in-house, at home, or from a holiday destination. Traditional financial institutions are facing new competition in the form of neobanks. These neobanks aim to democratize finance by removing it from a centralized framework and allowing customers to bank anywhere.

 

With the general decline in the number of brick-and-mortar branches, traditional banks may be at a fork in the road. As a result, it may be difficult for them to decide whether to become digital or exit the market. Digitization, on the other hand, is unavoidable. However, going completely digital isn’t necessarily what the modern customer wants.

Looking at the numbers, it’s evident that there’s still a lot of skepticism about neobanks. Plum, a fintech company, claims that 91 percent of its users have linked a physical bank to the app. Furthermore, according to an Accenture survey, 24% of European respondents have no trust in neobanks.

On the other hand, 25% said they have a lot of faith in their bank, 7% said the same about digital banking services, and only 4% said they have immense trust in neobanks. Thus, while digital banking is gaining traction, neobanks still have a long way to go before becoming the new normal.

Bottom Line

For future-looking banks, discounting the effects of the coronavirus epidemic as a short-term adjustment is short-sighted. Instead, banks need to take the long view and consider the aspects of society and business that are here to stay, such as more flexibility, personalization, analytics solutions, and the expansion of digital services.

 

By switching to a hybrid approach, financial institutions and customers can enjoy a multitude of services digitally from the comforts of their home.

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