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How are US Internet Users Moving to Online Banking?

May 24, 2019 9:05:51 AM

HOW-ARE-US-INTERNET-USERS-MOVING-TO-ONLINE-BANKING

When it comes to banking, the convenience of online and mobile experiences is quickly rising in popularity.

It makes sense! Why drag yourself to a branch location or hunt down an ATM to check your balance when you can do so from your couch with a laptop, or on your phone whenever you want?

As banking organizations look to capitalize on the embrace of this technology, it's important for them to understand the needs and preferences of their customers. It's also essential to understand how they can best leverage this new approach to banking, and for whom this novel mode is most valuable.

How is Online Banking Actually Being Used?

When one looks at the numbers around what sorts of transactions online banking is most widely used for, it's clear that there are certain types of business for which users are still more comfortable with brick and mortar bank branches.

Consider the following graphic from eMarketer:

 

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While users are comfortable using online banking to complete a substantial amount of transactions, there are still some types of business for which online banking has yet to achieve dominance.

By no means should this be taken as proof that online banking is a passing phase, however. In fact, in those categories where mobile banking is less popular, it's worthwhile for banks who want to promote online engagement with customers to ask themselves why it is that these transaction types are less popular.

Similarly, for the areas where online banking is truly popular, there are additional questions that banks can ask:

  • Am I providing adequate and ample mobile functionalities so that my customers can accomplish these tasks via online banking? Where are my mobile and online functionalities lacking?
  • What types of transactions and engagement customers like to use online banking for? How and where are they spending their time? How can I leverage these opportunities to collect valuable data or market to my customers?

Like in many other industries, FinServ marketers are quickly realizing the potential of hyper-personalized omni-channel digital marketing. While banks might previously rely on mailers or in-person engagement to promote new offerings, the increased activity in online banking opens up new avenues to reach out to customers and make them aware of just how they can optimize their experience with your bank.

Is a customer using your mobile app to pay bills? Let them know about loans, refinancing options, or debt forgiveness plans!

Is a customer depositing checks? Perhaps let them know how many of their own checks they've used and how many they have left. Provide them with the opportunity to order more if they want!

Is a customer contacting customer service? Let them know about features that might address their banking problems, or offers that can help them with financial issues!

As a channel for marketing, online banking and the proper understanding of such offers a wealth of possibilities!

What is the Future of Online Banking

Consider this chart from eMarketer:

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As we can see, an increasing number of users--especially in younger demographics--are sincerely considering the possibility of digital only banking, while a small portion already have.

While these numbers don't suggest that brick and mortar branches are instantaneously going to become irrelevant, they do hint that more and more users are becoming increasingly comfortable with the online banking experience, to the degree that they would be fine that that being the only banking experience in the future.

Again, this is not a sign that banks need to start demolishing their branches and torching their ATMs. It is, however, an omen that banking organizations need to put increasingly serious thought into their digital offerings; that they need to make sure their websites and apps are equipped to handle as many customer needs as possible. It also should alert banks to the reality that the best avenue for connecting with their customers will increasingly be in that digital sphere, and that their marketing strategy should be prepared to adapt to this reality.

The Ultimate Way for Banks and Customers to Come Together

Understanding these new customer demands and industry standards, Lemnisk has crafted a customer data platform (CDP) specifically designed for FinServ organizations. In the past few years, CDPs have taken the MarTech world by storm, and their versatility is especially helpful for banks looking to build strong bonds with their client base in an increasingly digital world.

CDPs make it easier than ever to collect, store, organize, and leverage the customer data that is essential to building the omni-channel, hyper-personalized marketing we previously discussed. Efficient use of CDPs along with data management strategies, such as Open Banking, also make it easier for FinServ organizations to remain compliant in the face of increasingly stringent data protection regulations.

With Lemnisk's solution, banks are quickly revolutionizing their approach to marketing, customer outreach, and solution provision. It's a CDP designed for the brave new world of banking, and it positions banks to consistently remain at the forefront of their industry--meeting each new customer demand appropriately, and evolving their brand to engage with the future.

Banking isn't what it was five years ago, and five years from now it might look even more different.

For banks looking to innovate and thrive, Lemnisk keeps them ahead of the curve.

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Did you Know? Innovative Marketers Already do!

At ForesightOne we can help your FinServ Institution develop an Innovation Center of Excellence and leverage innovative technologies such as Lemnisk's Customer Data Platform to drive marketing performance.

Michael Darer
Written by Michael Darer

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