3 key HMW questions for digital banking in Armenia

What makes Armenia's digital banking scene unique? How does it stay competitive globally? The rapid adoption of fintech innovations, coupled with strong regulatory support, sets Armenia apart. This environment fosters collaboration between traditional banks and fintech startups, driving major advancements. However, with this progress comes the challenge of maintaining robust security and compliance. How can Armenian banks tackle these issues while continuing to innovate? Addressing these questions is crucial for the future growth of the digital banking sector in Armenia.

Digital banking landscape in Armenia

According to thebanker.com Armenian banks on an upward trajectory.The most distinctive feature of digital banking in Armenia is its rapid adoption and integration of fintech innovations within a supportive regulatory framework. This unique combination fosters a dynamic environment where traditional banks and fintech startups can collaborate and innovate, driving significant advancements in customer experience, security, and financial inclusion. This blend of innovation and regulatory support sets Armenia apart in the digital banking landscape.

The main challenge arising from the rapid adoption and integration of fintech innovations in Armenia is ensuring robust security and regulatory compliance. As digital banking services expand, the complexity of maintaining compliance with international standards increase.

Balancing innovation with security and regulatory requirements is critical to safeguarding customer trust and ensuring the sustainable growth of the digital banking sector in Armenia.

However, how can we determine the correct trajectory for development? Considering the fast pace of progress in global fintech, how can Armenia keep up with the leaders? Conducting benchmarking exercises is crucial. Let us try to propose a strategic framework for prioritized initiatives through HMW questions.

HMW stands for "How Might We." It is a question-based framework used in problem-solving to identify opportunities for innovation and improvement. The format encourages creative thinking and collaboration by framing challenges as open-ended questions.

HMW Question 1: How might we enhance user experience?

Improving user experience is crucial in the competitive landscape of digital banking.

A third of customers would stop doing business with a bank they love after one bad experience.

Therefore, focusing on user-centric improvements can significantly impact customer satisfaction and retention.

Solution 1: Improved onboarding processes

Given Armenia's diverse population, including many newcomers and rural residents less familiar with digital services, improving the onboarding process is essential. Simplified, intuitive onboarding procedures can help new users, particularly those less tech-savvy, to understand and engage with digital banking services. Providing multilingual support, step-by-step guides, and video tutorials can make the onboarding experience smoother and more accessible. Additionally, offering personalized onboarding experiences based on user profiles can ensure that both newcomers and rural residents feel comfortable and confident using digital banking platforms.

We, at Markswebb, have thoroughly studied onboarding procedures down to the smallest details and are ready to offer well-informed strategies for improvement.

Solution 2: Gamification

Incorporating gamification elements into digital banking in Armenia can increase user engagement and motivation. By introducing features such as reward points, progress tracking, and interactive tutorials, banks can make financial management more engaging. Gamification can help users develop better financial habits and increase their interaction with banking services.

Markswebb has been researching gamification in digital banking for a long time - want to know how emoji, platformer games and virtual kitties can generate significant revenue for a banking app? Write to us, get your game on🙂

Solution 3: Seamless experience

Of course, creating a seamless and intuitive user experience is crucial for customer satisfaction. Banks should focus on streamlining the user interface and ensuring consistency across all digital touchpoints. This includes simplifying navigation, reducing the number of steps required to complete transactions, and integrating services to provide a unified experience. Adopting a seamless approach minimizes friction and enhances the overall usability of digital banking platforms.

HMW Question 2: How might we use the power of AI?

The integration of AI technologies presents a great challenge for the banking sector, as it requires careful implementation to ensure both efficiency and security. Properly leveraging AI can revolutionize customer interactions, fraud detection, and operational processes, but it demands meticulous planning and execution

Solution 1: AI chatbots support

Integrating AI-driven support systems in Armenian digital banking can significantly enhance user experience by providing instant assistance and personalized recommendations. AI chatbots can handle routine inquiries efficiently, freeing up human agents to address more complex issues. This approach not only improves response times but also ensures that customers receive accurate and relevant information tailored to their needs. We shared our insights about AI chatbots here Shaping future of AI chatbots in the banking sector: top 3 trends.

Solution 2: Implement advanced threat detection systems

These systems utilize machine learning and artificial intelligence to detect and respond to threats in real-time. For instance, anomaly detection algorithms can identify unusual transaction patterns and flag potential fraud before it occurs. According to a report by Capgemini, AI-based fraud detection systems can reduce false positives by up to 90% and increase detection rates by up to 95%.

Solution 3: Personalization of financial services

AI can be used to offer highly personalized financial services, tailoring products and recommendations to individual user needs. By analyzing user data, AI can provide insights into spending habits, savings patterns, and investment opportunities. This level of personalization not only enhances user satisfaction but also helps in building stronger customer relationships. Personalized financial advice and product offerings can lead to increased customer loyalty and higher engagement rates.

HMW Question 3: How might we increase user engagement and digital service penetration?

Boosting user engagement and increasing the penetration of digital banking services are critical for the growth and sustainability of the digital banking sector.

Solution 1: Tailored UX for different generations

Adapting the user interface (UI) and user experience (UX) of digital banking applications to suit different age groups can significantly enhance user engagement. Younger generations might prefer a more dynamic and visually appealing interface with gamified elements, while older users might appreciate a simpler, more intuitive design with larger text and clear navigation. By conducting user research and segmenting the target audience based on age, banks can create customized interfaces that cater to the preferences and needs of each generation, thereby increasing user satisfaction and engagement.

By the way, researching UX for different generations is one of our favorite topics. We know the ins and outs of navigating this labyrinth of fluid user expectations. See, for example, our study App User Research: UX for Different Generations.

Interested in tailored UX for different generations? We offer a range of valuable services in this area. Right now, you can explore a file featuring a collection of our research insights.

Solution 2: Incentive programs and loyalty rewards

Implementing incentive programs and loyalty rewards can significantly boost user engagement. Offering discounts or cashback rewards for frequent use of digital banking services can motivate users to engage more with the platform. Additionally, loyalty programs that provide benefits for continuous usage can help retain customers and encourage regular interaction with digital services.

Solution 3: Expanding service accessibility

To increase digital service penetration, banks need to ensure that their digital platforms are accessible to a wider audience, including those in rural areas and non-native speakers. This can be achieved by providing multilingual support, developing mobile applications that work well on lower-end devices, and ensuring a user-friendly interface.

The best solution: Markswebb's expertise for digital banking in Armenia

The key to addressing the crucial HMW questions in the context of Armenia's digital banking landscape lies in leveraging expert guidance and proven strategies.

Markswebb has extensive experience in resolving complex compliance issues for Armenian banks. Our agency offers comprehensive audits and analyses, benchmarking your compliance status against international standards and best practices. We can provide a detailed roadmap for development, ensuring that your bank not only meets current compliance requirements but also stays ahead of future regulatory changes.

Our team is ready to provide expert guidance and tailored solutions to simplify your compliance processes and enhance operational efficiency.

To learn more about how Markswebb can assist your bank in achieving and maintaining compliance with international standards, or to schedule an audit, please contact us.