In today’s digital age, how customers interact with banks and financial institutions has dramatically transformed. The rise of technology has given birth to various banking channels, from traditional branches to mobile apps.  Today’s customers demand more flexibility and convenience than ever before when it comes to banking. Throughout their journey with a bank, they’ll use many channels and expect their experience to be seamless, whether they’re visiting a branch, using mobile banking or an ATM, talking to a representative over the phone or a messaging app, chatting with a virtual assistant, or emailing their advisor, this has led to the emergence of two distinct banking models: Multichannel and Omnichannel.

Let’s start by understanding these two banking landscape concepts and moving toward the differences.

Multichannel banking involves providing customers with multiple channels to interact with a bank. These channels include physical branches, ATMs, internet banking, mobile banking, and call centers. While it allows customers to choose their preferred banking method, it often results in a fragmented customer experience.

Key characteristics of Multichannel banking:

  • Separate channels: Each channel operates independently, with limited integration.
  • Inconsistent customer experience: Customers may encounter different information or processes across channels.
  • Limited data sharing: Information gathered through one channel may not be accessible to others.

On the other hand, Omnichannel banking extends multichannel banking by creating a seamless and unified customer experience across all channels. It involves integrating different touchpoints to provide customers with a cohesive and consistent journey.

Key characteristics of Omnichannel banking:

  • Integrated channels: All channels are interconnected, allowing for a seamless transition between them.
  • Consistent customer experience: Customers receive a unified experience regardless of the channel used.
  • Data sharing: Information is shared across channels, enabling personalized interactions.
  • Customer journey focus: The focus is on the overall customer experience rather than individual channels.

Key Differences Between Omnichannel and Multichannel Banking

Omnichannel Vs Multichannel Banking

Some studies show that 38% of customers want service agents to know who they are and their past queries. Omnichannel banking is the best way to meet this expectation.

While multichannel banking provides customers with multiple options to communicate and transact, omnichannel banking delivers an integrated experience across all channels, from the bank’s website to its mobile app, branches, phone, messaging, and email support.

With multichannel banking, if customers use one channel and then another to interact with customer support, they might need to repeat information, creating frustration. Omnichannel banking connects each customer touchpoint to provide a unified customer experience. For example, support agents will know what a customer requests on the mobile app, phone, and in person. It helps the agent deliver more efficient support without requesting information the customer has already provided.

Omnichannel banking offers several benefits for both customers and financial institutions:

  • Enhanced customer satisfaction: Banks can improve customer satisfaction and loyalty by providing a seamless and consistent experience.
  • Increased customer engagement: Omnichannel banking allows banks to build stronger customer relationships by understanding their preferences and needs.
  • Improved operational efficiency: By streamlining processes and reducing manual tasks, banks can increase efficiency and reduce costs.
  • Competitive advantage: Offering a superior omnichannel experience can help banks differentiate themselves from competitors.

Implementing an Omnichannel banking strategy requires a holistic approach that involves several key steps:

  • Customer journey mapping: Identify the customer’s journey across different channels and touchpoints.
  • Data integration: Integrate data from various sources to create a single customer view.
  • Channel optimization: Optimize each channel to deliver a consistent and seamless experience.
  • Employee training: Equip employees with the skills and knowledge to provide excellent omnichannel service.
  • Technology investment: Invest in technology that supports omnichannel capabilities, such as CRM systems and mobile applications.

While omnichannel banking offers significant benefits, it also presents challenges:

  • Technology investment: Implementing an omnichannel strategy requires significant investment in technology and infrastructure.
  • Cultural change: Shifting from a multichannel to an omnichannel approach requires a cultural change within the organization.
  • Data security: Protecting customer data across multiple channels is crucial.

Case Study: How BOB Guarantees Delivery of a Seamless Experience?

Bank Of Bhutan Omnichannel Banking Platform

Modefin has implemented it’s Omnichannel banking suite into one of the largest financial institutions in Bhutan, Bank of Bhutan (BOB) which hold a customer base of around 70% of the total population of Bhutan. Using Modefin’s Omnichannel banking technology platform, BOB is offering various services to both new and existing customers, which will enable them to do financial transactions at their preferred.

Bank Of Bhutan Case Study

Omnichannel banking is the future of the banking industry. By providing a seamless and personalized customer experience, banks can gain a competitive advantage and build long-lasting relationships with their customers. While implementing an omnichannel strategy requires effort and investment, the rewards are substantial.

By understanding the key differences between multichannel and omnichannel banking, banks and financial institutions can embark on their omnichannel journey with confidence.

Would you like to delve deeper into a specific aspect of Omnichannel banking, such as customer journey mapping or technology implementation?