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Certificate in Retail and Digital Banking (Cert RDB) > 13. Digital Channels > Flashcards

13. Digital Channels Flashcards

1
Q

Why might in person delivery be better than digital?

A

To improve the banking relationship

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2
Q

What does Omnichannel mean?

A

Offering the same set of services available to customers across all channels (both digital and online)

Eg offering same level of service when shopping online and in store in retail

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3
Q

What is True Omnichannel?

A

When customer can switch seamlessly between channels in the middle of a conversation or transaction without any break in service.

Eg you’re paying a bill on your PC and need to leave for a meeting so you switch to phone service. Instead of starting the process again the system would recognise your number and pick up where you left off.

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4
Q

Do people want Omnichannel services?What percentage of users tend to switch devices before finishing a transaction?

A

Yes, most people do. 46% of people switch devices before finishing a transaction.

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5
Q

Who finds it easier to implement Omnichannel services? New banks or legacy banks? Why?

A

New banks, they build their channels from scratch to work in this way. Harder for legacy banks to switch to a joined up approach.

This will require IT upgrades which require additional costs and enhanced security.

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6
Q

In what decade were online banking systems introduced?

A

1990s.

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7
Q

What are the benefits of Omnichannel services?(7)

A

THINK: EU SO(AR) DC
1. Improved customer experience
- choose any channel they wish and not repeat themselves when switching.

  1. Better understanding of customers
    - analyse info being fed through different channels to build detailed profile on preferences and behaviour
  2. Increase sales & offer new services
    - more likely to have successful sales if you know more about your customers’ behaviour (targeted product sales based on this)
    - able to develop your services to make them what people want if you know more about customers’ behaviour

4.Reduce operational costs
- streamlined services
- automated services. Frontline staff still necessary but can become more specialised in providing outstanding service. Their time becomes more freed up and they can offer more tailored service based on info gathered.

  1. Attract & retain customers
    - allows banks to better meet modern customers’ sophisticated and demanding expectations.
    - switching is now so effortless that it’s even more important to provide outstanding experience so custs don’t switch
  2. Increased digital security
    - able to use multifactor authentication across different devices.
  3. More opportunity to communicate with customers
    - more ‘touch points’ for intervention, able to solve issues more quickly
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8
Q

Give an example of how Omnichannel can help with frontline processes.

A

Customer starts a mortgage application on laptop and later completes it on their phone

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9
Q

Give an example of how Omnichannel can help with back office processes.

A

When existing customers want to buy a new product or service, customer data can be prepopulated from existing stored data held on them. Staff don’t need to manually enter data again.

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10
Q

What does multichannel mean?

A

Services are offered across multiple channels but these act independently of each other.

Ie what banks have been doing until now

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11
Q

What are the main challenges faced by banks when switching to Omnichannel? (2)

A
  1. Higher cost
    - still have to run bricks and mortar bank but now have to pay for online systems as well
  2. Updating legacy systems to Omnichannel is logistically difficult and costly
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12
Q

Which more complex transactions do people usually prefer to deal with in person? (3)

A
  1. Mortgages
  2. Personal loans
  3. Investments
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13
Q

What does onboarding mean?

A

Acquiring new customers

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14
Q

With regards to multi-channel and omnichannel, which is bank-centric and which is customer-centric in its approach?

A

Multi-channel = bank centric
Omnichannel = customer centric

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15
Q

What is meant by distribution mix? Give an example of how this can vary.

A

How banks choose to distribute their services.

eg. banks downsizing their branch networks

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16
Q

What percentage did the number of bank/building society branches fall by between 2012 & 2019?

A

22%

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17
Q

What effect has moving to digital platforms had on customer data security?

A

A rise in opportunity for hackers/data theft.

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18
Q

What happened with the Equifax hacking scandal in 2017?

A

Hackers stole 200,000 credit card numbers and were able to get in due to a ‘Apach struts’ vulnerability in the software which Equifax knew about but failed to fix. Equifax were forced to pay redress to the victims.

19
Q

True or False - data stored on digital platforms should be kept to a minimum?

A

True, the less stored, the less that can be gained by hackers. Store only what is necessary.

20
Q

Having Omnichannel services alone is not enough. Banks must learn how to use then effectively. How can they do this?

A

Analyse customer needs and habits to identify appropriate products & services & then place these on platforms that customers are already spending their time on.

21
Q

How can banks adapt their Omnichannel services to meet the following customer habits & needs:

  1. Customer wants to be more knowledgeable
  2. Demanding and time poor customers
A
  1. Bank should create more information across the internet, social media and online consumer sites.
  2. Self-service functionality or offer a chatbot to help answer quick questions.
22
Q

Banks should utilise social media better by… (4)

A
  1. Determining their TARGET AUDIENCE.
  2. Shape their SOCIAL MEDIA VOICE in line with their BRANDING & VALUES.
  3. Have TWO-WAY CONVERSATIONS with customers - involve them in SURVEYS, QUESTIONNAIRES, INFORMATIVE CONTENT & COMPETITIONS).
  4. ANALYSE patterns of HOW PEOPLE INTERACT WITH EACH SOCIAL MEDIA PLATFORM (e.g demographics, time of day they usually visit, which content type is most popular & tone of voice used for each channel).
23
Q

What should bank staff consider when interacting with customers through social media channels? (3)

A
  1. Am I truly answering the question with RELEVANT CONTENT?
    - Would video or FAQ be better? Videos are better for the less technically confident when explaining how to set up online banking as FAQ wont show a step-by-step guide
  2. Am I providing ADDITIONAL INFO that can help the cust make a BETTER DECISION / PLAN THEIR DAY?
    - e.g. when a branch is closed, don’t just post a messaging saying it’s closed, instead include info on how long it will be closed for and include other ways to get in touch.
  3. Am I sounding EMPATHETIC, SINCERE & CONFIDENT in my reply?
    - audience isn’t just the person you are contacting, your response can be seen by all online. Rudeness can damage brand image.
24
Q

Analytical tools (in house or third party e.g Twitter/Google analytics) can be used to held banks to understand channel preferences due to information gathered on… (2)

What does understanding channel preferences allow banks to do?

A
  1. Age
  2. Geographic location

Provide more streamlined services.

25
Q

Which generation are more likely to buy products if they see them on Facebook shopping ads? Which are least likely to buy?

A

Most = Gen X
Least = Gen Z

26
Q

Which generation are least likely to buy products from physical in-store purchases?

A

Gen z

27
Q

Which social media channels are Gen Z and Millennials most likely to buy from? (2)

A

Instagram & Snapchat

28
Q

What is the biggest limitation of using digital channels?

A

Risk of data theft & data security

29
Q

Which businesses are subject to GDPR (2018) ?

A

Any who operate or collect data from within the EU.

30
Q

Which UK body is responsible for enforcing GDPR laws in this country?

A

Information Commissioners Office (ICO)

31
Q

What constitutes as a data breach? (4)

A

Any incident that leads to personal data being:
1. Lost
2. Stolen
3. Destroyed
4. Changed

32
Q

How long does a company have to report a data breach to the supervisory authority?

A

72 Hours

33
Q

When should a company inform customers of a data breach?

A

As soon as possible. This allows customers to be as vigilant as possible with their other accounts, which could be hacked into using the same data.

34
Q

What is the maximum fine that can be given for non-compliance with GDPR?

A

20 million or 4% of global annual turnover (whichever is bigger)

35
Q

Can individuals be fined under GDPR?

A

Yes, not just companies

36
Q

Under GDPR regulations, what should a company’s privacy policy include? (5)

What sort of language should be used when creating this?

A
  1. CONTACT details & its representatives
  2. WHY the company is collecting data
  3. HOW long data is kept on file
  4. WHO receives the data
  5. WHERE is the data stored

Simple language

37
Q

What is the biggest GDPR breach fine to have ever been given in the EU?

Why?

A

50 Million euros given to Alphabet Inc.

The company that owns Google, had been using customer data for behavioural advertising but did not get explicit consent / did not give customers enough control over their data.

38
Q

What is Geotagging?

A

Adding geographical info to media in the form of meta data.

Usually coordinates but can be as simple as tagging a place name in a photo.

39
Q

In what ways does GDPR affect how firms interact with customers via digital channels? (4)

A
  1. May need to ask customers for their PERSONAL DATA
  2. PRIVACY BY DESIGN
  3. Firms must OBTAIN EXPLICIT CONSENT to process customer data
  4. Customers are ENTITLED TO:
    - know HOW their data is collected/used
    - ask for mistakes to be CORRECTED
    - ask for data to be DELETED
    - REFUSE data processing for selected activities (e.g. marketing)
40
Q

What is considered personal data under GDPR? (9)

A
  1. Name
  2. DOB
  3. Phone Number
  4. Bank account details
  5. Passport Number
  6. Health records
  7. Race, Religion & Politics
  8. Social Media Posts
  9. Geotagging
41
Q

What is meant by “Privacy by design”? (2)

A

Firms must keep data collection to a MINIMUM & build SECURITY MEASURES into all stages of product design.

42
Q

How long should firms keep data?

A

Only for as long as is needed/necessary

43
Q
A

Certificate in Retail and Digital Banking (Cert RDB) (23 decks)

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