Digital transformation of Barclays Bank
Digitisation has been very useful in this 21st century, and most organisations, whether small or big companies are making necessary changes to adapt to this revolution. Since the business environment is changing, these companies have been forced to adjust to the new measures. One of the reasons for this adaptation is for these companies to remain competitive and to lead in whatever sector they are in. The finance and banking sector has not been left out of this business revolution. Compared to the traditional banking systems, digital transformation has made these banks to adopt new operation methods which happen on a digital scale. For example, one of the most sought-after strategies is Big Data in such financial institutions. One of the advantages that come with digitisation is the increase in service delivery.
An example would be, financial statements nowadays are easily accessed by customers in online banking. This report will focus on Barclays bank, which seems to be leading the financial and banking sector around the world. Regarding financial statements, Barclay’s bank enables the customer to conduct financial transactions without physically going to the bank.
Financial and banking sectors are now able to reduce their costs of operation, therefore improving their profits. Nowadays, the number of cashiers has been dropping since banks are gradually shifting to online operation; hence physical processes are dropping. With the introduction of smartphones, banks have created online banking platforms where they conduct customers. With this strategy, banks are now hiring fewer employees. On the same point, banks do not need to hire or build big premises for their operations. An example is MasterCard, which enables a bank customer to transact in any part of the country without any limitations.
On the other hand, digitisation has made the organisational culture of the financial and banking institutions change. Many employees are losing their jobs. This aspect has been maximised by the current pandemic (COVID-19), where employees have been given unpaid leaves. Companies have found ways of replacing their services with cheaper and simpler online banking methods like bank applications.
Focusing on Barclays bank, this organisation has the financial and bank digitisation in many ways. The bank has been operational since 1690, and therefore it is not new to changes in the industry and its functions. On a global scale, Barclays has approximately 24 million retail customers and 1 million clients. This organisation invested 4,148 million euros in enhancing its digitisation ways in 2017. This transformation’s main reason is to integrate customers’ demands and the need for digitisation in the industry. The company has made several initiatives for digital transformation, which are discussed below.
First, the company invested in a mobile app like all the other banks around the globe. According to statistics, smartphone penetration is estimated to hit 95% in the United Kingdom. The Barclays mobile app has been the most used in the United Kingdom, with over 1.7 billion transactions from their customers. Currently, Barclay’s bank does over 90% of its transactions online through the mobile application. The company boasts that the mobile app is easy to use and very informative while it has several; features. The app provides standard features like real-time money transfers and innovative means like freezing the debit card in case of robbery. Other standard features of the mobile app are bill payments and accessing financial statements.
According to the bank, in 2018, the bank gave its users an option to turn off individual retailers’ payments. With this option, the Barclays users can avoid or regulate addiction in gambling or other situations. This feature strictly gives the users a limit to stop transactions with specific categories of the gambling sector or premium rate websites.
The Barclays bank introduced a feature in which their users can view their account transactions and details from other banks. These banks include; NatWest and HSBC. Through this option, the bank has been able to penetrate the banking environment around the world.
Aside from the mobile banking application, Barclay’s bank introduced a digital eagles initiative whose mains effort is to develop a more substantial customer base. This feature was introduced in 2013, and ever since, it has been growing widely. The organisation introduced this feature to enable a new way of connecting and engaging with their customer base. This feature has helped many people access digital or online services and be taught how to use digital means of banking. One thing the bank offers is the Code Playground, which is their coding classes for beginners. The feature also enables safety tips for younger adults and kids, known as Digi Safety Cadets. These two aspects allow educational approach to digitisation of their customers base. Their primary target of online sessions was 500, but they beat that target and now get over 5,500 sessions. The two platforms help the bank fully reach their customer base despite the age of the customers. For the older generation, the Support Bar helps customers use a computer to access their online banking services. In addition to customer engagement, Barclay’s bank has a dedicated YouTube channel that addresses most of the customers’ online questions and challenges. With this channel, the bank can reduce long queues at the banks in the name of customer care.
Digitisation is safe and secure; always, one of the biggest challenges is cybersecurity for both the customer and the bank. A survey done in the United Kingdom shows that over 6000 people have experienced cyber-crimes. On this note, Barclay’s bank has invested roughly 10 million euros in tackling cyber frauds through digital means. The company has invested in creating awareness to its customers concerning cyber fraud.
Barclays bank is among the few financial institutions that allow virtual cards to be accessed through their mobile applications. Ideally, this means that the bank provides contactless cash transactions and withdrawals. Other features include instant cheque imaging which allows the customers to use and paycheque without going to the banks. This cheque limit has been regulated to approximately 500 dollars in one week.
Barclays bank has used digitisation as an inclusive feature to all its customer base regarding their disability. The organisation introduced various platforms for their disabled customers. For example, the company provide audio cash machines for their visually impaired customers. With this technology, such customers can conduct their transactions using their voices. For the speech impacted customers or the deaf, the bank introduced another feature called the Sign Video. And this allows such customers to access their bank through sign language and chat with customer care interpreter.
Having such a vast customer base, the Barclays bank set to transform its operations to Big Data. With this aspect, they succeeded in constructing a platform where they can check large sums of data in seconds. The company migrated from the old programs, and therefore, this opened the company to various opportunities.
In comparison to other companies, the Barclays Group has outdone other banks in terms of customer satisfaction. The bank invests plenty of time and money to ensure the customer base is well served and sorted. For example, Barclay’s bank invested in digitisation starting from 2015, while other companies like Standard Chattered began recently. Standard Chartered increased their online banking response as soon as most governments globally encouraged cashless transactions due to the current pandemic. On the contrary, Barclay’s bank dismissed most of their employees due to digitisation and the COVID-19 pandemic while standard chartered bank encouraged working from home for most of their employees. Barclays bank has slacked in terms of cryptocurrencies. Bank of America has been committed to digital banking and cryptocurrencies, which seems to be the future of digital money. Despite this, Bank of America has outdated technology systems which make Barclays have the up hand. Financial institutions like Citigroup have invested in their employees and technology. The organisational culture of this institution leads as the employees have the freedom of teleworking.
To conclude this section, Barclay’s bank seems to have the upper hand compared to the other banks because it focuses on the essential and required services at the moment. The company maximises on customer engagement, unlike some other banks.
Recommendation
Barclays bank has a leading face in the finance and banking sector and requires to put in the following recommendations for further. Barclays should try and improve their online services in terms of account opening and maintenance. Individuals who face issues concerning their accounts have to avail themselves physically at any Barclays bank branch to be assisted. The same scenario applies to account opening; people who want to have a Barclays account must go to the bank. This process should be put in any online platform and all the mobile app requirements or their official website. Through this, the bank can expand its customer base faster and more broadly. During this pandemic, people must stay home; therefore implementing such aspects would take the bank a step ahead.
Since technology and its systems undergo regular updates, the bank should have a standard plan (yearly) where most used systems change. By updating systems regularly, the banks can have a smooth operation of data and finances. Through these updated systems Barclays bank could avoid internet fraud and cybersecurity issues.
Since the company is dedicated to its customer base, Barclay’s bank should inform its customers concerning internet fraud and cybersecurity. Instead of creating awareness through billboards and televisions, the bank should reach each member through their telephone number’s mobile application.
To maximise profits, Barclay’s bank should follow the footsteps of an insurance company called AIG. The company applied artificial intelligence to one of its shops for the automatic ticket system. Barclay’s bank could avoid the mentioned issues like congestion in the bank for services with this technology.
Citigroup leads in the money transaction, and it is something Barclays bank should borrow from them. Citigroup allows customers to pay their bills and transfer money through Alipay and messaging applications like WeChat and LINE. Furthermore, the company provides customer care or service through various platforms like Facebook messenger. Citigroup has partnered with these major companies like Google to enable customers to have varied options.
The organisational culture seems to be a problem for Barclays bank since digitisation seems to be reducing the number of employees, especially during the COVID-19 pandemic. Companies like NuBank have devised a way of all their workers and able employees to work from home. No matter how digitisation takes up spaces, people are still required for efficient and effective service. Instead of employing new personnel, the company could train the existing employees on how to handle the digitised systems. NU bank and Standard chartered have led the way for teleworking and still provide excellent customer service and financial services. On the same note, DBS bank changed its strategy to serve as a technology bank. The bank decided to put its future thoughts and changes to be same as the technology companies. DBS bank changed its processed to be truly digital, and hence products like DBS remittance are fully digital. With this aspect, the feature is fully operational, even if there are large numbers of customers. Barclays bank should incorporate this idea.