Phygital Banking: A new digital experience
The need of the hour is the transformation of physical banks into Phygital ones to establish humanized digital experiences.
December 26, 2019 / 09:00 PM IST
The shelf life of physical banks has reduced over the past few years. Recently, Jio’s internet explosion in India marked the watershed moment which initiated the radical shift of things from physical to digital. Increasing numbers of Fintech apps and neo-banks have more or less replaced traditional banking, at least in urban India, leading to the closing down of many physical banks.
The result of this rapid transformation in banking retail practices is a new concept- one that combines the advantages of digitisation with the comfort of a brick and mortar bank - Phygital Banking is making inroads to take banking operations into the new decade. Phygital is the portmanteau of physical and digital. Phygital banking emphasizes on being inherently digital in both physical and digital channels backed by humans.
Digital is springing high but it doesn’t mean that physical banking will not be in the state of need. The first step of Phygital banking is that all brick and motor banks should opt for digital banking with the implementation of cutting-edge technologies for its operations. Incorporating Artificial Intelligence, Distributed Ledger Technology (DLT), open banking, ensuring cybersecurity and enhancing the digital experience of the customers will transform a conventional bank into a digital one. The addition of human interaction to this digital transformation is what takes banking to a whole new level.
The advantage of Phygital is that it still allows traditional visits to a bank office for those who cannot keep up with the rapid digitization in banking operations, and thus banks can ensure the trust and comfort that eventually leads to customer satisfaction. The digital aspect is that these physical banks also grant enhancement of the customer experience with advanced technologies expediting the banking processes for customers and ensure an enjoyable atmosphere during their visit to banks.
Phygital puts forth a hybrid experience where physical and digital combine to connect emotionally with customers. For example, customers of the BofA who need financial advice or banking guidance are arranged video conferencing with bank officials in the situations of their inability to come over directly but still needed a trusted and reliable conversation. Capital One bank created cool cafes and appealing meeting rooms to casually discuss the financial stuff. This is the big picture of Phygital Banking!
Telescoping into the future, Phygital Banking will be the most acceptable and safe banking activity for a large number of customers since it gives space to both the comfort factor and efficient digital banking practices. Relying on the extremism of one concept is of no use but the amalgamation of both will help us move onward. The need of the hour is the transformation of physical banks into Phygital ones to establish humanized digital experiences!