What Is the Future of Digital Banking?

by | Nov 27, 2020

Trends Shaping The Future Of Digital Banking

COVID-19 has co-opted every organization’s digital transformation strategy, infusing a new sense of urgency ongoing digital.

The banking industry is no stranger to digital disruption – brought on by the rise of new technologies, heightened consumer expectations and new agile, digitally enabled market entrants. As a result the industry already started transforming, pre-pandemic, but now it has become a matter of urgency and ultimately…survival.

The three articles we selected discuss the digital trends shaping the future of digital banking.  It is no surprise that the conversations are around innovation, technologies such as cloud and AI as well as creating enhanced, seamless customer experiences through omnichannel customer communications.

But first, Mia Papanicolaou gives advice on how financial institutions can deliver an omnichannel CX – includes a link to her blog post. GET IN TOUCH

Banking Technology Vision 2020

Paperless adoption iconThis article, by Accenture, provides a summary of the key points extracted from its annual ‘Technology Vision’ research report that identifies “the emerging technology trends that hold the greatest potential to disrupt businesses and industries.” This year, the title of the report is: Banking Technology Vision 2020 – you can register to receive the full report.

It’s clear that banks no longer have time to prepare for the arrival of the digital ‘train’ – it is here and brings with it many opportunities, as well as threats. It is noted that to succeed, banking organizations urgently need to innovate, reinvent and redefine themselves with a focus on elevating the human experience and adopting a ‘shared success mindset.’  

Four key trends that are shaping the post-COVID future of digital banking were identified in this sector-specific research. They are: 

  • The I in experience: choosing your own adventure 
  • AI and me: a business where AI and humans cooperate 
  • Post-COVID CX: a connected customer experience and Innovation 
  • DNA: engines for perpetual innovation 
  • Publisher: Accenture
  • Access: Public
  • Download: Report (Registration required)

Digitalization is changing banking – these 3 trends will help shape its future

Single customer view vs single profile viewPre-COVID-19, 2020 was already identified as being the start of the technologies and innovations, which consumers are also now more willing to adopt – bringing the requirement for seamless, hyper-personalized customer experiences to the fore.

A global study on the future of banking gives great insight into banking leaders’ approach to these challenging times, as well as how they see the future of their industry. Three trends that are set to shape the future of the banking industry were identified from the study and discussed in this article, namely: New technologies will drive banking transformation over the next 5 years, artificial intelligence will separate the winners from the losers in banking and banks will overhaul their business models to create digital ecosystems.

A clear takeaway is that by adopting cloud technologies and AI, banks can enhance as well as differentiate their offerings while redefining their value to customers – this will ensure their survival in the current  COVID-19 landscape and beyond.

Securely empowering consumers through the omnichannel

What do customers expect from banks today? It’s evident that consumer expectations have evolved significantly and it’s not surprising that the banking sector has been under pressure to meet them. The pandemic has also heightened these expectations significantly while expediting the transition to digital.

This article discusses the new generation of consumers – Gen Z – and how they have grown up in a ‘connected’ world, where Tech giants (Facebook, Amazon, Google etc) reign supreme. As a result, they expect the digital interactions they have with all other providers of products and services to also be hyper-personalized, seamless and efficient.

We read that while legacy banks have adopted a more digital approach to customer communication, there are inconsistencies across the channels, with regards to services offered and authentication methods. “For the majority of legacy banks, the greatest change will be the shift in thinking, changing their focus from what they offer to how they make their offerings.”

Today’s consumers not only want choice, but also the freedom to choose – so banks have to adapt and provide omnichannel customer journeys. This means ensuring a seamless, hyper-personalized customer experience across all channels. Read further to learn more, as well as how banks can “find the synergy between security and a delightful customer experience.”

 

Banks need to rise to the Omnichannel CX challenge

The COVID-19 pandemic shifted so many digital transformation plans.  No-one could have foreseen such a dramatic change from customers, concerning their rapid migration to digital channels.

Delivering on the omnichannel CX promise prior to the pandemic was already a challenge.  Financial institutions are still expected to deliver communications to customers via their preferred channel, all the way from print to a range of digital options. This, while driving innovation and supporting industry-specific regulatory requirements in a very anxious market.

Now more than ever, financial services companies need a plan to deliver the omnichannel, seamless experience that customers expect. Organizations that fail to tune in to these new expectations risk losing customers to those that had the agility to adapt.

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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