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Digital Banking is on the Rise, and it's Presenting a MAJOR opportunity for banks

May 9, 2019 12:17:17 PM

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In order to stay on top of a given industry, organizations must constantly pay attention to current trends--the demands and behaviors of clients. For banks and other FinServ institutions, this means understanding how individuals are interacting with their brand and investing in technologies that support those interactions.

It's probably fair to say that each and every one of us has taken advantage of digital banking at one time or another in the past week. For some, that behavior might be more extensive--developing a reliance on our digital banking tools for certain capabilities.

Still, whether it's checking a balance, making a transfer, working with loans, or collecting rewards, the majority of folks can count on digital banking as a consistent presence in their lives.

The Numbers Bear this Out

In a recent infographic sourced from Accenture and published by Statista, we can see that--since 2018--over 60% of individuals surveyed in the United States admitted to using digital banking, with the numbers rising every year, and predicted to reach over 65% by 2022. 

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While this graph does not take into account--or, at least, does not demonstrate--frequency or intensity, it does send a powerful message to banks: more and more individuals are becoming comfortable doing various online banking activities.

These numbers become more interesting when viewed in the light of a second chart, this one sourced from Capgemini.

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As per this second graph, when asked about important factors disrupting the worldwide banking sector in 2018, over 70% of senior banking executives cited "customer expectations," while nearly 55% referenced "increasing demand for digital channels," which goes hand in hand with "regulatory pressure" and "emerging technologies" such as the use of Artificial Intelligence, Open Banking, and Blockchain. 

* Regulatory pressure points mentioned by these executives most likely refer to consumer privacy and protection regulations such as the GPDR and soon to come CCPA in January 2020.

As customers become more and more comfortable with digital banking solutions, they're likely to become more reliant on and demanding of them. If you feel totally at ease moving money between accounts on your bank's website or mobile app, you're less likely to schlep out to a branch when you don't need to. In this article, we explore this topic more in-depth.

Investing in Digital Banking is One of the Best Ways to Build Customer Satisfaction

Increased engagement with digital banking solutions doesn't just drive customer expectations...it creates opportunities for connection and the deepening of customer relationships.

On the one hand, any bank that sees its clients working more and more via apps or websites would do well to ensure that their digital banking capabilities provide as many opportunities and conveniences as possible. At the same time, these banks should recognize the value of how increasingly fertile digital banking solutions are as a means to connect with customers and adopt solutions that can add value such as FinServ CDPs and personalization solutions.

Its one thing when a frequently used banking app is a simple and utilitarian way for customers to easily interact with their bank remotely. It's another thing when that ease of use is supplemented by personalized offers, real-time promotions, and an ongoing customer-centric dialogue.

Your Brand Can Be Everywhere, All the Time

While in the past, banks would have to mail out fliers or wait for clients to drop by a branch in order to speak with them about add-ons and promotions, digital banking gives these same banks a consistent and ever-updating channel directly to their customers. As individuals engage more and more with digital banking technology, banks have more and more opportunities to connect, without having to worry that someone deleted their voicemail or tossed out a piece of mail.

With the increase in the popularity of digital banking, you can get in touch with clients based on their preference, and provide them with offers that suit their needs in the very moment. 

Investing in digital banking offers one of the best opportunities to meet customer expectations and exceed them; to provide customers with what they want, and to suggest to them such things that they hadn't even considered they might need.

Every business dreams of being able to nestle inside their clients' brains, to anticipate what they might want, and produce recommendations when they're most relevant. Digital banking is providing the most fruitful opportunity to do just that.

With the enhanced ability to collect data on customer behavior in real-time, and the ability to deploy hyper-personalized offers directly to that customer's device of choice, digital banking presents the opportunity to have a closer and more continuous relationship with clients than ever before.

That promises a major return on investment.

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Michael Darer
Written by Michael Darer

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