4 popular digital transformation trends in banking
Digital transformation is rapidly changing the way banks do business. From mobile banking to analytics-driven insights, the banking industry is digitizing and innovating to create better customer experiences and improved operational efficiencies. In this blog, we’ll explore the top four popular digital transformation trends in banking that are transforming the industry. We’ll discuss how each of these trends is impacting traditional banking models, and how banks are leveraging them to better serve their customers.
1. AI Possibilities
Meeting customers where they are is one of the main drivers for banks and credit unions to adopt digitization and AI. As consumers have become more dependent on digital platforms in all facets of their lives, they expect all of their banking needs to be readily available at their fingertips in the modern digital economy.
The financial services sector will be impacted by the rise of digital assistants in three key areas: customer service, the way financial service providers interact with their clients, and the need for upgrades to legacy technology.
Through the use of chatbots, virtual assistants, and digital customer support services, customer service will become more individualized, natural, and effective. Additionally, banks will need to figure out how to equip staff with technologies that encourage them to be proactive in resolving client issues.
2. Partner with Fintechs
Due to their use of digital technology, agility, and the ability to transform data into highly personalized engagements, many executives within traditional banking organizations continue to view fintech companies as a significant competitive threat. Fintechs, however, are now viewed as a doorway to innovation by more bankers than ever before. Many innovation initiatives at banks and credit unions of all sizes have been sped up by partnering with fintech companies.
That is not to say that alternative financial services do not affect the balance of competition in the banking industry. People are increasingly diversifying their financial relationships by adding accounts from non-traditional players, even though very few customers are switching from their current financial providers. The good news is that most non-traditional financial institutions still lack the level of account holders’ trust and familiarity that traditional banks and credit unions do.
3. Changing from a single touchpoint to a thorough customer journey
The popularity of financial mobile apps is encouraging consumers to use mobile banking because they find these platforms more convenient for tasks like checking balances and making purchases than other channels. Banks that make an investment in creating top-notch apps will be able to give their customers more convenience and less hassle.
But using only mobile apps is insufficient. Financial institutions should look to invest in branch employees’ access to technology that will equip them with tools that promote proactive problem-solving at the same time. For instance, to help customers with potential problems, customer service staff could be given interactive tablets and anytime, anywhere access to customer data.
In the branch, virtual assistants are anticipated to take the lead and finish tasks that have traditionally been handled by both employees. Therefore, it’s crucial that banks continue to put a lot of effort into creating their own virtual assistant capabilities as well as the necessary skill sets for these technologies.
4. Personalization of digital products
The new competitive advantage is the ability to customize products. The likelihood of selling a policy can be significantly increased by providing a specific customer with a specific product at a specific price point.
In 2023 and beyond, banks and credit unions will place a stronger emphasis on providing customized digital products.
The digital transformation of the banking industry is an ongoing process. These technologies are helping to streamline the banking industry, making it more efficient, secure, and convenient for customers. With these trends, banking will continue to evolve and become more innovative to stay competitive in the digital world. Contact SmartOSC Fintech today to be able to access the above solutions as soon as possible.