Deploying a digital-first banking platform is not only now possible but mandatory for financial institutions of all sizes. To compete effectively in the future, every bank and credit union must understand the four facets of a digital platform strategy -- omnichannel capability, modular structure, open API architecture, and smart technologies. Subscribe to The Financial Brand via email for FREE!Consumers used to shop around, traveling from branch to branch, evaluating the products offered, service pricing and friendliness of the bank or credit union staff. Today, that shopping usually occurs online or on a mobile device, with financial partner decisions made based on website or mobile banking app design, social media recommendations and even Google search rankings. The impact of distance from a branch is being replaced by the experience of the digital banking engagement.
The mobile banking consumer is one of the most active segments, yet financial institutions usually do an inadequate job of onboarding and cross-selling this base. The result can be seen in measures that show a low level of mobile engagement beyond balance inquiries money transfers on mobile devices. Subscribe to The Financial Brand via email for FREE!At a time when roughly half of financial institutions still don't have an effective onboarding program for new customers or members and have not implemented a process of cross-selling that takes advantage of internal and external consumer insight, it is not surprising that the industry does a poor job onboarding new mobile banking households. It is also not surprising that banks and credit unions have not leveraged the mobile banking platform as a way to cross-sell additional products and services. Both of these strategies can provide quick and significant payoffs if done correctly.
Providers have no alternative to fully understanding each consumer they serve. The future of engagement is not about points and discounts, but about making banking easier and providing personalized experiences that respond to financial needs in real time. Subscribe to The Financial Brand via email for FREE!Banks and credit unions are increasingly adopting a more personalized approach to connecting with consumers across all media channels, according to research from the Digital Banking Report. To stay ahead of the competition, financial services companies are making efforts to build human connections with consumers and trying to build a more emotional style of consumer engagement. This is impacting all customer-facing components of the retail banking organization, from marketing to product development, to back-office operations, channel management and innovation.
The combination of new marketing technologies and the ability to access and leverage real-time data allows financial marketers the opportunity to create personalization -- at scale -- for each individual at the right time, and with the right message. Subscribe to The Financial Brand via email for FREE!Imagine someone is shopping for a new bank or credit union. While they are looking for their new checking account, they are using a comparison tool that helps them determine which account best meets their needs. Ideally, this tool allows them to weigh the new options against the account they currently have, so they can see what's similar and what's different. After the new account is opened, the consumer receives a very quick email or text thanking them for their business and helping them understand the best way to start using their account.
Over the past couple years, the Digital Banking Report has done several research reports on the digital transformation of the banking industry. While the largest financial institutions appear to be keeping pace with consumer expectations, the majority of the industry is falling woefully behind. It doesn't need to be this way. The Digital Banking Report has been researching the financial services industry for more than two decades, tracking industry trends and making predictions about the future of retail banking. Recently, a startling trend has emerged that could have a dramatic impact on the industry worldwide.