The rapid development of the digital economy and society, coupled with the negative impact of COVID-19 in 2020, has significantly changed the current economic growth pattern, with a drastic slowdown in the Chinese economy.
In particular, the banking sector has moved from the era of high interest rates to the era of medium to low interest rates due to multiple macro-negative factors such as a stagnant economy and scarcity of assets. . In addition, the development of digital has led to a change in customer behavior, with the number of retail customers reaching an all-time high.
At present, the retail businesses of banks have become the new engine of profit growth due to their high return on assets, dispersion of business risks and large potential customer base. Statistically, the retail business of China’s banking sector surpassed that of state-owned enterprises for the first time in 2020, with the proportion of retail business reaching 31.4%. The performance of listed banks is the most remarkable, with retail business profits accounting for 45.61% of the total. Thus, retail banking has become the main driver of the overall revenue growth of Chinese banks.
At the same time, the development of online and mobile finance has gained tremendous momentum in recent years, and various institutions, including third-party payment providers, e-commerce platforms and telecommunications operators, have continuously launched customized financial products, meeting the advanced digital customer needs. difficult to cover by standardized banking services. Thus, in the face of fierce competition from peers and across borders, the digital transformation of banks’ retail business has become unavoidable and unavoidable.
In the process of digital transformation, banks’ retail operations need to shift from a “product-centric” to a “customer-centric” approach. Currently, throughout the process from customer acquisition to operation, from the bank’s perspective, there are problems such as difficult customer identification, low customer conversion, and low efficiency of staff ; from the customer’s perspective, there are issues such as homogenization of services, complex customer journey and poor service experience. The most significant problem in the bank’s retail business is its inability to consistently identify customers, accurately detect customer needs, and turn customer information into value, which directly results in poor customer conversion. customers, or even a loss of customers.
At present, banks are prioritizing retail digitalization, applying it to various aspects such as marketing, operation, risk control and core system to promote the whole transformation, which puts considerable pressure on digital management. Therefore, as an unparalleled value-added business communication platform, WeCom, similar to WeChat, has become the best digital tool for banks to improve their efficiency in management and communication.
In particular, WeCom is equipped with lightweight OA applications, providing a wide range of third-party applications and more than 200 APIs for banks to access and run their own applications, enabling unified and convenient management of business applications on a single platform. In addition, WeCom, integrated with WeChat, Mini Programs and WeChat Pay, can establish a deep connection between internal and external systems, realizing the integration of omnichannel resources and enabling enterprises to provide customer-centric services to external parties. .
With the widespread use of mobile Internet technology in the banking industry, customer service is no longer confined to the counters, thereby standardizing digital retail banking services. With changing customer demographics and behaviors, banks need to focus on the customer journey and select key marketing touchpoints to improve the customer experience, with a view to reaching and meeting the real needs of customers. clients. A superior and customer-centric customer experience will become the moat for banks to be competitive in the future.
There are many artificial intelligence and big data companies based in China. Good AI and Big Data services will drive sales, deliver more personalized experiences, and improve WeCom’s performance. This part will feature our top picks for the best AI and Big Data business partners for WeCom.
To select the companies offering the best user experiences, Equalocean built a model based on data from interviews with experts and the Equalocean database. This model evaluates these companies on four aspects: technology, personalization skills, operational skills and societal impact.
According to this model, these companies can be classified into three levels. The first level includes Tenwit, Mininglamp Technology and Beta Data; Level 2 includes Yitong and Dustess; Tier 3 includes Tanmarket and Inrice.com.
Of these companies, Beta Data, Tenwit, and Dustess are good options for customers who focus on a particular aspect, while Mininglamp is ideal for customers looking for an “all-rounder”.
Beta data is exceptional for their content creation skills. It has comprehensive content release strategies to deliver various content mediums to individuals and businesses. Tenwit provides superior support in all aspects of operations. His service covers the design of operational systems and operational strategies as well as the implementation of operational strategies. The customer will also benefit from the good reputation of his brand. Dustess stands out for its technical skills. Based on SCRM platform and AI and big data technology, Dustess offers closed-loop digital marketing services for banks. Mininglamp has comprehensive skills and is the best business partner option in terms of overall performance.
Mininglamp connects customers and banks through WeCom by providing closed-loop services covering all stages of customer relationship management. It builds customized customer-centric systems for the bank with security guarantees. Additionally, through mature AI and big data technology, Mininglamp is able to gain more access to customer data by processing customer conversations and behavior, thereby providing more personalized services.
The partnership with Mininglamp will make WeCom an efficient, excellent and legal service provider thanks to its unique operating system.
Therefore, with the development of fintech, the relationship between customers and retail banks will be redefined. Different generations of consumers have unique preferences and needs for financial products and services. Banks need to form a comprehensive 360-degree user portrait of their customers based on the integration of private and public data and perform intelligent analysis accordingly to deliver personalized products and services to enhance the consumer experience.
By connecting to the strong WeChat ecosystem, WeCom attracts multi-channel online traffic and connects public and private domain traffic with an open interface to build an exclusive WeCom information pool for banks. By improving user retention and loyalty, reducing customer acquisition costs, and leveraging user value throughout their lifecycle, banks can more accurately meet user needs and realize value extraction. longer term. In the future, WeCom, as the largest traffic portal for bank retail customers, will become the best digital tool to help banks achieve full digitalization.
This article contains only excerpts from the report. For more details, please click to download the full report here.