The Banking industry is undergoing a lot of changes…
… many of which have to do with increased competition from new entrants into the market, rapid innovation from the emergence of new technologies, and changes in traditional business models. The pandemic has accelerated some of these changes. As many companies, banks had to go completely digital in a matter of days, guaranteeing that customers had access to the full range of services they needed from their bank and that employees had the necessary facilities to operate remotely. This shift to digital was a remarkable show of agility for the industry that proved it was able to use the technology at its disposal to make this shift in such a short amount of time – contrary to existing and long-standing arguments regarding how difficult it would be to take this step.
The world of banking has experienced a level of disruption that will change everything that was the norm in financial services.
Of consumers spent their time on finance apps
Digital Xperience in Banking
The Banking Industry has been slowly but irrevocably changing over recent years, and technology has been a big part of that change. The pandemic itself has been responsible for years’ worth of change in the industry and has brought down some barriers to the digital transformation of banks worldwide.
Banks had to promptly find digital options for all their services to ensure their customers had what they needed to continue using their bank and managing their financial lives even while distanced and confined in their homes.
Media
Artificial Intelligence in Banking
Sustainable Banking
Challenges & Opportunities
Results & Insights
Future of Banking
This new landscape brings challenges – some new and some that, though not new, are still relevant – that the banking industry must face. But, as we all know, from every crisis, new opportunities emerge. Banks still have other options for differentiation, and there are some identifiable trends that banks can take advantage.
Challenges
It’s a recognised fact that customers are savvier and more informed and, therefore, more empowered and have more information available to make their own decisions. What’s more, customers increasingly expect the same seamless experience from every service and brand they interact with.
90% of consumers “are concerned they will be the subject of fraud in the future”. Furthermore, 61% believe that companies with access to their data should bear responsibility for avoiding these kinds of attacks.
2020 was the year of digitalisation. Due to the pandemic, millions of organisations had to switch to digital overnight to ensure that their products and services were available online and ensure that their workforce could work remotely from home.
Banks should not focus engagement strategies on specific generations or run the risk of disengaging a significant number of customers because they’re not meeting their needs.
Trends
There’s an increasing awareness that banks and financial institutions also have a part to play when prioritising initiatives that help protect our planet’s future and focus on environmental impact.
The future of banking may well be one of the partnerships where financial ecosystems are the norm. Banks are already exploring how they can work together with other institutions to deliver better services, a wider variety of products and radically transform their customers’ banking experiences.
Looking ahead, banks should bolster their digital infrastructure, strengthening and modernising their systems to become prepared to meet present and future challenges.
