A decade ago, the term “banking” was associated with endless lineups, piles of paperwork, and lagging processing time. Today, customers have access to instant mobile banking app services and solutions that are easily adaptable to their business lifestyles. Digitalization has also blurred the lines between financial and non-financial products, as increasingly more banks offer value-added services to exceed customer expectations.
Customer expectations have evolved tremendously, and with a click of a button or a swipe on their phone, consumers want instant access to banking services. With the rise of neo-banks and other digital providers of financial services, banks cannot afford to lose their clientele. To capture intent and provide a satisfactory experience, banking leaders are adapting to the new digital landscape, too.
Mobile Banking App Adaptability is the key to maintaining a competitive advantage
A recent study done by Accenture has revealed that digital banks have an NPS (a metric that measures customer experience and forecasts business growth) three times higher than that of traditional banks. Apart from Fin Techs, additional players in tech, such as Google, have included financial services into their set of offerings.
Companies are using data to provide customized offers and convenient lending products to their target audience, whereas others leverage geo-location data to inform customers of new banking offers in their proximity. Given the new value propositions, Fin Techs and neo-banks are taking customer acquisition to the next level. Growth rates exceed 170%, slowly compelling legacy banks to adapt and come up with innovative solutions to keep their customers.
COVID-19 has accelerated the need for digital transformation in the banking sector
It’s been two years since the pandemic started and for many banks, COVID-19 was the nudge they needed to evolve. In the absence of human interaction and extended lockdowns, banking leaders around the world were forced to find solutions to maintain customer loyalty. Digitizing products and services like mobile banking app was the first step in the right direction, and increasingly more banks are now implementing agile methodologies to provide faster, customized, and more accurate products.
For digitalization to happen, C-suite executives had to go beyond front-end operations. Many have also revamped internal processes related to data monetization. The changes made had an immediate impact as customers could finally access traditional banking services without leaving the comfort of their homes.
The future of banking depends on continuous transformation
Slowly but steady, increasingly more traditional banks are on the verge of changing their mode of operating. Innovative initiatives such as paperless offerings, user-friendly mobile apps, and added online services are helping legacy industry players successfully compete with digital financial players. The downside is that FinTech companies are one step ahead, constantly upgrading their offerings and exceeding customer expectations.
To meet the changing needs of the people, the transformational journey of a bank must go beyond implementing agile processes and leveraging advanced technology. The first step is to assess the competition extremely well. The second is to realign business objectives and identify ways to cater to customer pain points.
We live in a world of digital expansion where artificial intelligence, IoT, machine learning technology, and big data lie at the core of the digital banking ecosystem. For legacy banks to deliver tailored, customer-centric, and proactive experiences, collecting and segmenting data is the key to providing unparalleled products and services throughout the entire journey of the modern consumer.
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