With the proliferation of technology, banking customers are living in a connected world with their experience from other industries influencing their expectations from their financial services provider. This has led to an evolving customer-bank relationship necessitating banks to be more customer-centric by embedding themselves in customers' lives to meet rising customer experience expectations. However, banks have been facing challenges in meeting customer expectations, as they are troubled with legacy challenges both in terms of technology and culture. This document aims to understand and analyze the trends in the banking industry that are expected to drive the dynamics of the banking ecosystem in the near future.
The UK's largest current account provider has reported problems with its online banking service. Lloyds Banking Group said some customers with Lloyds' accounts faced "intermittent issues" when trying to log onto the online system. It has apologised and says it is trying to resolve the problem urgently. App services are working normally. The bank has 10 million account holders, 60% of whom use digital services.
While anyone could purchase a Certificate of Deposit (CD) that paid over 5% APY just a decade ago, the average rate for a 12-month CD is now just 0.59%. Worse, the average savings account rate is only 0.10%, which adds up to almost nothing regardless of how long you let your money grow. This just goes to show that low interest rates can be good for housing and borrowing but terrible when it comes to preserving capital and growing wealth -- at least a good part of the time. Fortunately, an array of online banks have saved the day by offering better-than-average rates over the last few years. This includes the CIT Bank Savings Builder Account, which offers a 2.30% APY on balances of $25,000 or more or on accounts that post a deposit of at least $100 each month.