digital transformation strategy

3 Key Performance Indicators (KPIs) to Measure the Success of a Digital Bank in 2020

The global online banking market size is anticipated to reach $29,976 million in 2023 from $7,305 million in 2016, presenting a CAGR of 22.6% between 2017 and 2023.

Today, most banks are adopting digital twin models to extend their services and better cater to their customers.

It is opined that a well-devised digital transformation strategy can bring profound benefits to online banking in terms of reduced costs and amplified profitability for banks. By calculating the ROI generated from online banking, banks can identify the limitations of their business models and further optimize them for better growth.

3 KPIs to Measure the Success of Digital Banks

  1. Digital Traction Metric

Banks offering online services can daily, weekly, and/or monthly track the number of existing users or new sign-ups on/via internet and mobile banking. By estimating the growth and evaluating the most popular channels among users, they can devise appropriate plans to improve the numbers.

More detailed metrics that can help banks deliver better services to customers would be average time spent on transactions, count of transactions left uncompleted, count of active users, frequency of failed transactions, etc.

  1. Cost to Acquire Customer (CAC) on Online Banking

Providing online banking services adds a lot to the expenditures of banking organizations. The outlay can incorporate development, sales, and marketing costs. Digital banks can calculate the worth of those costs by dividing the sum of all these costs to the count of new customers added.

CAC = (Development + Marketing + Sales Costs) / Number of New Customers

  1. Lifetime Value of Customer (LTV) to Digital Banks

Banking verticals generally have a long-term relationship with their customers. Digital banks can calculate the value that a customer is going to add to banks during their expected relationship span. The decision on how much a bank should ideally invest in customer acquisition and further services can be taken more intelligently based on that number.

Once digital banks start to measure the profitability based on the above-mentioned KPIs, they can increase their revenues by leveraging the best strategies. Banks can leverage digital transformation advisory service to explore additional KPIs and decide upon the best strategies for each KPI.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through its own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. We follow a coherent roadmap that includes incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out via our e-mail at info@millennial.ae.

Enterprise AI solutions

4 Ways Enterprise AI Solutions can Fuel Business Growth

Kinetic global business leaders have implemented AI strategies in businesses and have become an epitome of success. According to a study, a lot of business managers consider that Artificial Intelligence would profit their organization by reducing costs and increasing opportunities. 84% of respondents also believed that Al will lend a competitive advantage to their business.

In this blog, we would cover the 4 basic benefits of integrated AI strategies that can disrupt businesses and help them grow.

4 Benefits of a well-integrated AI strategy

  • Better Business Decisions

Infobesity and capacity constraints are a bad combination for the growth of an organization. It is believed that artificial intelligence consulting services can mitigate the impact of this bad combination on business decisions.

AI can enhance information processing and amplify capacities of business and therefore businesses can level up their efficiency of decision-making.

  • Better Customer Experience

AI has capabilities to prepare a business for its customers. Through Artificial Intelligence, the tracking of customers’ activities is easier than ever. Many businesses are already leveraging this tool to improve their products and services. KFC, in collaboration with China’s Google Baidu, has launched an AI-equipped facial recognition system. The system tracks customer preferences and can be further used to predict what customers would want to eat at a particular time of the day.

A large proportion of businesses have also unleashed the capacities of AI in automating customer interactions and making real-time assistance possible. A Canada-based telecommunications company increased its customer satisfaction by 65% by integrating chatbots into its operations. AI can greatly contribute to enhancing the customer experience.

  • Better Data Quality

AI can only help businesses collect more relevant, high-quality data but it has also changed how businesses eye and process big data. Many businesses have leveraged Enterprise digital strategy advisory services and have devised an integrated AI strategy to enrich data quality.

With enhanced capabilities related to data tracking, arranging, processing, and mining, businesses can amplify their business opportunities and increase their profit shares.

  • Better Business Operations

The AI potential use case stack offers a lot of other untapped applications. These can transform and automate business operations, making businesses more cost-efficient and resource-efficient than ever.

AI can help in better business decisions, customer experiences, data quality, and business operations.

Prepare your business for tomorrow’s transformative world with Enterprise AI solutions offered by Millennial Partners.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through its own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. We follow a coherent roadmap that includes incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out via our e-mail at info@millennial.ae.