Digital Banking - Influence on Total Banking Business

Analyzing product performance to measure Digital Banking initiatives

In addition to many other financial organizations, banks are seeing a rise in demand for their digital products as clients move away from physical branches and online services. It might be tough to recognize and measure the impact of your online channels as you acclimate to this new way of working.

Banks need to assess their digital activities using six key performance indicators (KPIs). These measurements can help you evaluate how your online solutions are being adopted by consumers, the influence on total banking business, and where you can enhance the customer experience.

Account registrations and activations – how many people seek a new bank account, fill out an application, and then "activate" their account. The activation varies per bank, although it is frequently more than the initial login.

1. Transactions by channel –

Trend lines comparing financial transactions in-person at a branch vs. those that occur through digital channels. You can also add breakdowns by transaction type (account openings, mortgage/loan applications, deposits, withdrawals, and so on).

1. Device logins for online banking -

Every day or week tally of logins to digital banking is split out by device type. A high-level view should compare desktop and mobile devices, while more comprehensive should specify the type of browser or mobile operating system.

1. Login rate (daily, weekly, and monthly) and retention -

It tracks the number of active accounts each day, the number of active users over the last seven days, and the number of active users over the past 30 days. These metrics also be used to determine retention and whether people continue to utilize your online services over time.

1. Call center volume -  

Each day, the help desk receives a certain number of calls. Then you can examine the category to determine how many calls are directly related to online banking.

1. Customer sentiment (CSAT or NPS) - 

A regular summary of responses to a prompt such as "How happy are you with our digital banking on a scale of 1-5?" (Customer satisfaction or CSAT) or "How likely are you to suggest our digital banking to a friend on a scale?" (NPS, or Net Promoter Score)

Understanding consumers

As digital banking products become the primary means for consumers to manage their finances, it is imperative to understand how their behaviour is evolving and adjusting. Consider the following questions before delving into the data:

• Customers are shifting their routine banking activities to digital channels, or are they slowing down or postponing transactions entirely?
• As the number of in-branch transactions declines, how much of that business has moved online?
• Are some sorts of transactions more likely to be completed online than others?
• Are these services accessible digitally for transactions that are slower to convert to digital, and are our consumers aware of these digital offerings?

You can make better judgments about where to spend and how to prioritize upgrades if you know the most common ways people use your digital services. Is it more common for clients to check in using a desktop or mobile device? Would it be better to add mobile capabilities to your online processes?