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.
Transforming a traditional financial institution into a digital organization goes beyond redesigned online banking or mobile apps. Infrastructure and legacy processes must change, as does the culture. Despite the difficulty, there is no other option. Subscribe to The Financial Brand via email for FREE!The digitization of banking has created new financial products, consumer channels and choice as well as improved back-office operational efficiency. At the same time, digital technology advancements have created opportunities for new players, threatening banking's stronghold on the consumer's portfolio of financial services.
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.