Being digital means being ready to adapt and see the rapid transformation each day. The same applies to digital banks. What seems impossible now will become a reality of the upcoming digital banks. Moreover, it is expected that the traditional boundaries of all the financial industry, including digital banks, will vanish by 2030.
Let’s dive into the three trends that will re-shape the concept of Digital Banking in the future.
Future Of Digital Banks
Customer-centric Digital Banking Apps
Customers today, particularly digital indigenous ones, expect their service providers to provide simple, easy-to-use digital experience. Consumers can purchase music from Amazon with a one-click, sign up for Instagram with Spotify in less than a minute, and expect the digital banking experience in a similar fashion.
Nobody is disagreeing that, unlike everything in decades, the banking sector is experiencing major changes. New technology affects legacy banking models, consumer expectations, and market competitors. In the way financial institutions interact throughout their financial life cycle, we even see changes. The question is, what are the main trends to be addressed in the next 12-18 months? Which action is required, more importantly?
Here are the three ‘S’ to answer the question.
- Simplified mobile interface optimized for genuine consumer movement, increasing complexity from user interaction, and allowing users to switch effortlessly through digital and physical banking networks.
- Simplified feature, moving the emphasis from a ‘first practical approach to a ‘first-person’ mindset and concentrating on adding value to consumers rather than aggressively implementing fresh and vibrant features.
- Streamlined language, thereby removing some nuanced banking jargon. It clearly means a lower barrier to financial literacy in digital banking and makes it easier for consumers to understand and use.
Improved Data Utilization
With advanced data sources and technologies for obtaining insight, the opportunity to proactively recognize customer needs, and the appropriate product or service to be delivered is exceptional. The banks and credit unions can produce dramatically better outcomes by integrating new, traditional, and non-traditional data.
Currently, financial advertisers and marketing managers have access to lifestyle and psychological data, data on ownership and purchasing of financial and non-financial goods, customer habits, brand loyalty, geo-location data, and even social media usage insights. Such improved observations in combination with wit
The confluence of Physical and Digital Experiences
The distinctions between physical and digital in recent years have become less distinct, due to the advent of smart apps and technologies such as virtual reality, wearables, and web and video chat solution.
According to Deloitte, the integration between real-life and physical experience is also crucial for ensuring outstanding consumer engagement in financial services.
By combining the physical and traditional in-real processes, banks will create and encourage closer customer relationships and deeper customer participation. We will soon see more digital banking apps that allow access to interactions and communication in real life. In real-life banking interactions, for example, we can also see the emergence of digital platforms.
Advanced Marketing Performance
The details, predictive analytics, and introduction of innovative marketing technology allow a particular audience to be better targeted than ever before at the right time of their involvement. And at a time of less user switching, effective multi-channel marketing is required to fuel new consumers.
The problem is that there has been little progress in calculating the effectiveness of rising marketing investments. For most organizations use multi-channel, measuring the productivity of each channel during their customer journey, and knowing the optimal cadence and sequence of messages to ensure optimum ROI is more important than ever.
These are just a few glimpses of the future of Digital banks. Get your self ready to see the tremendous technological changes with an improved bank-customer experience.