Here are the 3 Factors Revolutionizing the Future of Banking

By CIOReview | Friday, June 14, 2019

FREMONT, CA: The banking industry has come a long way and is witnessing a tremendous transformation. With the advent of smartphones and mobile applications, banks are fostering the change by providing a gateway to multifold operations to consumers. Consumers can buy financial products using their phones, which eliminates the need for making physical visits to the bank. However, the proliferation of digitized environment has created its own set of challenges, especially with the demanding consumers, who are trying to make pace with the rapid transition.

Nevertheless, the customers tend to show a stronger emotional connect with technology and brands like Uber, Apple, Amazon, and Google. The ability of these companies to converge experiences from the digital and physical world is highly appreciated. Banks have failed to leverage the available technology to provide excellent customer service.

Earlier a user would have a bank account at a branch for his entire life. But today, consumers are switching banks to suit their financial needs. Thus, the banks can’t afford to compromise with their services as this might cost them their loyal customers. Therefore, banks need to adopt a comprehensive strategy that encompasses Business, Operations, and Technology.

Here are the factors that will revolutionize the banking industry:

Going Beyond Money Accountability

Banks need to portray a more significant role than merely acting as a money-keeping entity. They can provide services focused on lifestyle requirements such as lifestyle goal planning and tracking, spend analysis across financial institutions, need-based in-app marketing, and others.

Customer Experience Is Detrimental

The concept of design thinking has gained recognition across the businesses. It also helps to establish the innovation of services and products within social and business contexts. Design thinkers and experts are partnering with software engineers to create unique digital products. Banks can follow the same and work toward delivering a holistic digital solution with a consumer-centric approach.

Actionable Insights at the Core of Decision Making

Amidst a pool of data, it’s high time for the banks to go beyond data and make decisions based on insights. The insights can be gained from every transaction, conversation, complaint, and social sharing between customers and bank or between customers. The insights can help in customer-micro-segmentation, customer profitability, and lifetime value analysis.