The latest pace of technological advancements has paved ways for diverse businesses to integrate digital transformation into their operations. With this change, the banking industry has also shifted towards digital, delivering convenience for users to make banking processes remotely. Customers today can easily make transactions wherever they are, and apply for loans from anywhere, at any time.
Just a decade ago, over half of all banking transactions made within the branch network, but now the number is stepping down to less than 10 percent. This is all happened by the proliferation of smartphones that has led to a new banking system, mobile banking.
While banking reaches to its new heights and grows more complex, it is becoming more intricate to deliver seamless customer experiences and reliability across distinct channels. Thus, meeting these changing trends, many banks and credit unions are leveraging advanced digital technologies and new business models to build better customer experiences.
Here are the top digital banking trends reimagining the customer journey to enhance customer engagement.
In the age of digital where transformation is happening all the time, it will become impossible for any business, of any size to drive innovation and progress alone. There is an essential need for organizations to forge strategic partnerships with others that can extend products, services and platforms to a new market. It will also be helpful in garnering new customer exposure by reaching new customer segments. When it comes to establishing collaboration with the right partners are selected, it is imperative to consider that there should be greater agility, seamless integration with systems and products in place.
Measuring marketing performance is one of the vital keys for any business to drive effective customer engagement. In this context, gathering data, advanced analysis and the implementation of new marketing tools and methods can make it possible to target specific audiences effectively organizations are never imagined earlier. Banks also needed to make use of effective multichannel marketing, when customers switch their services, to reap new customer experience. While most firms utilize multichannel marketing campaigns, it is significant to scale the efficacy of each platform in the customer journey for the ideal ROI.
Deriving data from the right sources enable organizations to better understand their customers’ needs and interests. Banks and credit unions can even go beyond simply using demographic, risk-based and product ownership profiles by gleaning and processing data based on customer preferences. Advanced data analytics enables financial institutions to utilize data to determine what customers are preferring in overall banking processes, and not only deliberate their buying preferences but also the expected timing of need.
Today, a platform is a new business model where both consumers and producers can connect, interact and exchange value. This plays a vital role in today’s competitive environment by enabling multiple organizations to offer products and services in order to satisfy the needs of a wide range of consumers. Platforms hold major opportunities for financial firms in the banking industry, assisting in accessing large amounts of data and taking personalization efforts to the next level. In a KPMG report, the retail industry has the biggest number of platforms (50), while the financial services industry has 26 platforms organizations.