The Banking Industry Is ripe for Change

According to Reyes, who cited a US independent study on the retail banking business, years of behavioral shift can occur in less than two months. “That’s not even a metaphor; that’s something that’s literal.” “Everyone had to suddenly rush through change in two months,” he claimed.

Online retail banking is still in its early stages in the Philippines, with only a small percentage of the entire client base using it. Consumers, on the other hand, adapted when they were no longer able to visit their bank offices, discovering alternative methods of completing bank transactions such as check deposits and peer-to-peer payments.

In the Philippines, online peer-to-peer transactions have exploded in popularity. Because of this, he said, “a lot of mobile wallet [businesses] have shown their numbers – and how huge GCash and PayMaya are right now.”

Customer Shifts That Can Be Used In Other Sectors

Consumers who used internet banking for the first time were more likely to utilize mobile banking than those who solely used branch banking, according to the survey. And, according to Reyes, this applies to any industry that relies on brick-and-mortar sales.

“If you used to interact with a firm through their retail/offline store, their brick-and-mortar store, it’s likely to be flipped now.” It’s not that the branch won’t have a role; it just won’t be the same. Customers are increasingly choosing to interact with you online,” Reyes noted.

The market’s newest customers, Generation Z, were also the most inclined to increase their use of digital banking.

A generation of digital natives “who have no idea what life was like before the Internet” will be at ease with banking apps and will be the ones to teach their parents how to use them. “This is how you transfer money; all you have to do is do this,” Reyes explained. /Connecting With Customers Through Social Media

Metrobank, like other banks, had to close its branches during the lockdown, and clients turned to the internet for assistance.

“We saw a 400% increase in the number of enquiries we received on social media.” “I needed to increase the amount of individuals I had – the community managers,” Reyes explained. To do this, the bank enlisted the help of employees who were unable to return to their respective branches and provided them with community management training.

“When the pandemic hit, my team was ready to fully exploit the brand website and our social media channels to update our clients, publish on a daily basis, and not only that, but also to push financial education,” he said.

“You want to promote financial education because a well-informed customer is a valuable customer.” And when I say customer, I mean you keep the individual. You don’t want them to depart for a competitor or another company.”

Many businesses are hesitant to turn their social media channels into customer care touchpoints, but Reyes believes that online customer service is critical to client retention and loyalty.

“If I were talking to you and you said you didn’t want to conduct customer service, I’d ask you this: Are you saying you’re prepared to spend money on acquisition – building awareness, influencing consideration, getting the client in…but you don’t want to spend money on keeping the client?”

“It’s a loyalty game when it comes to customer service.” “What’s your loyalty if you’re not there dealing with customer service?” he inquires. Customers are on Facebook, so businesses should be there as well. He says, “You have to be there and ready to answer.”

The Crisis as a Change Catalyst

Metrobank is likewise concentrating its efforts on creating more seamless omnichannel banking experiences when clients resume their offline transactions, even if their online banking habits have not changed.

Reyes says they consider strategies to assure roll-out while developing their plan so that the experience is constant and uniform, whether online or offline. “[Everything] is linked together. So, if your firm has silos, how do you deal with them, and how do you break down walls and ensure clear ways of working with everyone?”

“We understand the need to consistently enhance and build on the present banking channels that we have,” adds Reyes, with an eye toward adding value and, if possible, developing new products. New goods may not be appropriate for other businesses, but “finding new channels that are relevant to your client base or customer base” is, he says.

“You should keep an eye on what’s going on in the industry and look for new channels or platforms that can help you.”