Leveraging Internet Banking for Customer Retention Strategies in Today's Digital Era

Fariba Jadah

Department of Management, Islamic Azad University, Piranshahr, Urmia, Iran

*Corresponding Author:

Fariba Jadah
Department of Management,
Islamic Azad University,
Piranshahr, Urmia, Iran
E-mail: faribajadah@gmail.com

Received date: 22-02-2023, Manuscript No. JIBC-23-93392; Editor assigned date: 24-02-2023, Pre QC No. JIBC-23-93392 (PQ); Reviewed date: 10-03-2023, QC No. JIBC-23-93392; Revision date: 17-03-2023, Manuscript No: JIBC-23-93392 (R); Published date: 27-03-2023

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Description

Internet banking has become an essential part of our everyday lives in today's fast-paced and technologically driven world. The Internet has increased customers' access to financial services and improved their convenience and effectiveness. As a result, the banking business has undergone substantial change, with an increasing number of customers opting for internet banking services.

The relationship between internet banking and customer retention strategies in the banking business will be the subject of this article. Customer retention strategies are the tactics and actions used by banks to keep their customers happy with the services they provide.

Online banking has made it possible for banks to offer a seamless and customised customer experience. From the comfort of their homes or while traveling, customers can use their mobile phones to access their accounts, view their transaction history, move money, and pay their bills. Customers now spend less time and effort physically visiting the bank as a result of this. Additionally, online banking offers a 24-hour service, allowing users to access their accounts from any location and at any time, boosting user happiness and loyalty.

Second, internet banking has made it possible for banks to provide a broader variety of services to their clients. Banks can now provide online credit facilities, insurance goods, and other possibilities. By becoming a one-stop shop for all of their financial requirements, banks can now provide a wider range of services to their clients. Because they are less likely to switch to a bank that doesn't provide the same variety of services, this has improved customer retention rates.

Thirdly, banks are now able to gather client information through internet banking and use it to tailor their services to the needs of each individual customer. Customers' data can be used by banks to better comprehend their needs, preferences, and behavior patterns. The use of this information to target offers and promotions to consumers can increase their loyalty and retention rates. An individual who frequently uses their credit card for internet purchases, for instance, might receive a personalized credit card offer from a bank. By doing this, there is a greater chance that the customer will take the offer and stick with the bank.

Fourth, internet banking has allowed banks to improve customer service. Customers can reach out to the bank via email, chat, or phone and have their questions answered promptly. This has enhanced the customer experience and decreased the need for customers to visit the bank in person. Chabot’s can also help banks respond quickly to customer inquiries, reducing the time and effort needed to resolve customer issues. Online banking has made it possible for banks to provide a more secure banking environment. Banks can use two-factor authentication, encryption, and other security steps to guarantee the safety and security of their customers' data and transactions. Customers' trust in banks has increased, and the probability of switching to another bank due to security concerns has decreased.

Finally, internet banking has transformed the banking business, allowing banks to better their customer retention strategies. Banks can increase customer loyalty and retention rates by providing a seamless and personalized customer experience, a broader variety of services, targeted promotions, better customer support, and a secure banking environment. Banks that invest in online banking and customer retention strategies are more likely to be competitive in the banking market.