The coronavirus pandemic has acted as a driver of digitalization in most companies. Important courses have now been set almost everywhere. Now it is important not to ease up in the efforts, as new tasks are already waiting. They have identified challenges based on a survey of around 1,000 executives that banks will increasingly have to face in the future: among others, changed framework conditions, new customer demands, and the inadequate conviction of employees. But it is also worthwhile to look more closely at these challenges in the retail sector in order to make informed decisions in time.
Recognizing Changed Framework Conditions
Today, digitalization is more of a duty than an option for companies. Associated with this are significant innovations. In retail, these mainly relate to the changed framework conditions. E-commerce is becoming increasingly popular with customers, and new mobile technologies are entering the business. It is therefore worthwhile to consider both the customers and the employees when adapting to these changes and preparing for the future.
The Customer is King
Special focus should be placed on customer wishes and needs. For example, cash remains significant for customers and is often the preferred payment method when shopping. Therefore, the decline in access points to cash, including the removal of ATMs, has led to cashback becoming established in stores.
How payment methods have specifically changed can be read in our blog post “”. Since cash remains important for customer loyalty, it is important to find new, more efficient ways here as well. Those responsible need to create processes that optimize cash handling and make digitalization a real asset for the company.
Convincing Employees
In addition, retailers must always keep their employees in view during the digital transformation. After all, they are ultimately the ones who can benefit from the changes in day-to-day work. It is important to overcome the lack of conviction of the team regarding the innovation. Despite initially appearing higher IT complexity in certain processes, the use of digital applications, such as a paperless back office via smartphone, is generally simple, more effective, and less prone to errors.
Moreover, digitalization can be seen as a motivator. Repetitive tasks can be automated and depicted. As a result, this relieves the employees and creates time for customer service. At the same time, the saved resources help the company counteract staffing shortages.
Important Step: Process Digitalization in Cash Handling
Digitalization plays a central role in business success. For this reason, retailers should not only see it as an approach to optimize personnel cost structures. The process digitalization supports employees in their daily work and provides relief for the company through resource savings, for example, by generating and evaluating data on KPIs.
From a cash management perspective, process digitalization can also work wonders. Digitalization helps to link this, especially for retail and its employees, with simple processes. Data collection within the process digitalization can, for example, support automating recurring tasks completely. Various information can be centrally stored and ultimately evaluated as part of forecasts and analyses. This, in turn, is useful for reliable decision-making, for example, regarding logistics. Additionally, paperless digital processes promote sustainability and transparency.
Retailers should consider the following aspects for a transformation and process digitalization:
- – View digitalization as a continuously running process to continuously develop structures.
- – Involve employees: Test phases and evaluations of solutions can help create acceptance.
- – Find integrated solutions: Digitalization affects all areas, which should be viewed not only individually but also holistically. Keyword: Interfaces.
- – Note: Interfaces to suppliers and service providers are particularly essential. We at ALVARA are an optimal partner here through the full integration of the Bundesbank, banks, and service providers.
- – Capture and evaluate data points: This allows for critical assessment of changes in performance, customer satisfaction, or costs.
Tailor-Made Solutions
In addition to understanding what process digitalization can achieve for cash handling, retail must of course also find the suitable solution for practical implementation. With Interactive Cash Control (ICC), we have been offering an established solution for the industry for several years. The focus is on transparent control of cash cycles and more efficient processes for work within the branch and with cash-in-transit companies.
With the ICC app as a mobile solution for back office cash management, flexible working is also possible. The app provides sophisticated interfaces as a basis for automating individual subprocesses. Therefore, nothing stands in the way of rapid, digital information exchange to optimize the handling of current challenges.
CTA: The decisions for the future must be made now.