The current digitization pace across the banking industry enables banks to shift to a modern era of banking technology from legacy software. Since the technological advances have provided access to customers to do everything, from searching to purchase to fulfil their needs online, digital banking has offered a wide range of comfortable features and possibilities to people.
While online deposits, mobile banking, mobile transfers and e-bill payments are fundamentally becoming the norm, the banking sector is still in its nascent stage to digital transformation. Also, augmented consumer demand for digital banking services has boosted many technological advancements in banking and artificial intelligence at the core of these transformations.
The Banking Services for Tomorrow
According to a report, just a decade ago, over half of all banking transactions performed within the branch network, but now the number is down to less than 10 percent. It is also predicted that at least one in two transactions is likely to flow through channels from different digital systems, fintechs and other third-party ecosystems by 2022.
Thanks to open banking and rapid innovation and developments of digital channels, the online or digital banking feature offers customers the new banking experience with convenience anytime, anywhere. As this digital banking experience can be offered by both traditional banking institutions and tech-savvy startups, it accelerates most basic banking operations like bill payment and account transfers.
Though, online banking subsequently driven by mobile banking that offers services from the convenience of one’s mobile device such as a tablet or smartphone. Mobile banking allows users to perform routine banking tasks through their mobile devices, while digital banking covers every banking feature digitally available through the internet.
Now, let’s see here the top digital banking trends shaping the industry in 2020.
Enhanced Use of Data
As more banking processes will be done digitally, the source of data will also be increased. However, with augmented sources of data and technology to process information, there is a unique opportunity for banks to proactively meet consumers’ needs and the apt product or service to be offered. These days, marketers and product managers have access to lifestyle and psychographic data, financial and non-financial product ownership and purchase data, brand loyalties, and different channel and social media preference insights. And when integrated these enhanced insights with advanced analytics will not only give to purchase information, but also the projected timing of need.
Today’s open banking environment offers banks the ability to expand beyond traditional banking services. In a 2019 McKinsey survey report, almost 44 percent of the US bank executives expect non-financial products to represent 10 percent or more of organizational profits. On the other hand, the executives further reported challenges that the consumer is not as likely to leverage their current bank for services including healthcare, retail, travel, among others. Thus, to cement this gap, the report recommends that traditional financial institutions must collaborate with organizations that already have a recognized foothold in non-financial services.
Advanced Marketing Performance
Customers’ data, advanced analytics and making use of new marketing techniques make it possible to target people or specific audiences at the right time of engagement more perfect than ever before. So, there is a need for effective multichannel marketing to stimulate a new customer base and accomplish organic market growth when at least a small number of consumers will switch to a brand. However, the ability to scale out the efficiency of growing marketing investment has lagged that is a major challenge. As most businesses utilize multichannel marketing campaigns, it is more significant that to measure the effectiveness of each channel in the customer journey and comprehend the best inflection and sequence of messages to gain an optimal return on investment.