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What Is 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.
This 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)
Pre-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.
- Publisher: World Economic Forum
- Access: Public
- Download: None
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.”
- Publisher: International Banker
- Access: Public
- Download: None
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.