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The essay demonstrates the most crucial digital opportunities and threats for a commercial bank. In addition, the strategies to reduce the number of abandoned baskets are discussed. Notably, nowadays, digital currency is one of the most influential trends in the financial industry. Xu and Tang (2020) claim that central banks worldwide have started to use digital currencies to enhance local economic development and reduce the differences between the rich and poor. Another trend that represents opportunities for commercial banks is chatbots introduction. According to Kostelník et al. (2019), chatbots are becoming the fundamental tool for automated conversations and operations with clients. Moreover, Saji et al. (2017) state that applying various digital technologies will enable banking operations and services speed, efficiency, and security enhancement. Thus, digitalization provides commercial banks with a broad spectrum of growth opportunities.
Digitalization in the banking industry illustrates two sides of the coin. First of all, the competition between banks increases through tech-platform and innovation thriving (Sibanda et al., 2020). Therefore, classical banks may lose their competitive advantage if they do not adapt quickly to the tenacious competition with dig-techs. Sibanda et al. (2020) claim that another threat that can impact the success of a banks marketing strategy is the possibility of malicious cyber threats. Consequently, banks in UAE introduce various applications and platforms, such as the Emirates Digital Wallet, eDMobile, and e-Dirham apps, to avoid security issues (p. 200). Therefore, banks should focus on enabling a high level of customer data security.
Significantly, B2C companies should focus on employing service innovation strategies to reduce the number of abandoned baskets. For instance, Zhao et al. (2019) suggest implementing mobile payment initiatives, insurance and wealth management, and crowdfunding in the financial sector. According to Miller (2021), potential customers leave the website mainly because the site load slowly or the process is complicated. Therefore, companies should concentrate on improving the website considering functionality, appearance, and security. In addition, Walker (2020) suggests that B2C companies use innovative ad and email retargeting and call tracking to improve communication with potential customers and encourage repeat purchases. To conclude, companies should consider the recent digitalization trends in order to survive the competition and provide high value to customers.
Reference List
Kostelník, P., PisaYovic, I., MuroH, M., DaYena, F. and Procházka, D. (2019) Chatbots for enterprises: outlook, Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 67(6), pp. 1541-1550. doi: 10.11118/actaun201967061541
Miller, G. (2021) 31 Shopping Cart Abandonment Statistics For 2021. Annex Cloud. Web.
Saji, M., Bundalo, D., Bundalo, Z. and Paaali, D. (2017) Digital technologies in the transformation of classical retail bank into the digital bank, 25th Telecommunication Forum (TELFOR), pp. 1-4. IEEE. doi: 10.1109/TELFOR.2017.8249404
Sibanda, W., Ndiweni, E., Boulkeroua, M., Echchabi, A. and Ndlovu, T. (2020) Digital technology disruption on bank business models, International Journal of Business Performance Management, 21(1-2), pp.184-213. DOI: 10.1504/IJBPM.2020.10027639
Walker, T. (2020). Shopping Cart Abandonment: How To Recover Baskets Of Money. CXL.
Xu, Z. and Tang, C. (2020) Challenges and opportunities in the application of Chinas central bank digital currency to the payment and settle account system, Financial Forum, 9 (4), pp. 233-238. doi: 10.18282/ff.v9i4.1553
Zhao, Q., Tsai, P.H. and Wang, J.L. (2019) Improving financial service innovation strategies for enhancing Chinas banking industry competitive advantage during the fintech revolution: A Hybrid MCDM model, Sustainability, 11(5), p.1419.
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