Embracing Tech in Banking

Embracing Tech in Banking

It’s no secret that advancing technology is impacting how our society thinks, acts and, in general, how we live. Technology is the driving force of innovation and has led to more accessible data, better products and services, and efficient ways to communicate.

The banking industry has begun to meet these types of challenges as well. A few years ago, banks proactively reacted with online and mobile banking—but consumers are asking for more. Prompted by consumers’ needs for innovative products and services, new trends are giving banks the opportunity to create better products and become smarter marketers, leading to more loyal customers.

Banks must embrace technology advances to increase consumer confidence and drive their success. Five of these trends are beginning to affect the banking industry already:

1. Omnichannel & Optichannel

The amount of data analytics available is making it easier to target consumers with personalized and relevant messages. This means that banks could better communicate with current and prospective banking customers by creating solid messages placed within the right media channel for the right consumer. Creating similar experiences between different channels could help gain loyal and repeat customers.

2. Access

We all know that technology is constantly changing, and consumers can find information at the click of a button. But did you know that also affects how people use their bank accounts? The rise in technology is getting banks to think about how they can better serve their customers from securing enough ATM machines for quick deposits to easy online banking services. Whether consumers are connected through desktops, laptops, tablets, phones, watches or glasses, banks need to constantly consider the next platform that will allow for easy bank accessibility.

3. The Rise of Financial Applications

New and innovative mobile applications are created almost every day; some are even created to help manage your money. Financial technology startup companies (also known as fintech companies) are beginning to partner with banks to help consumers make smarter financial decisions. Fintech companies are creating mobile apps that are helping consumers with easy payment processes, reducing fraud, saving money and promoting financial planning. From easy bank-to-bank money exchanges to helping you decide which stocks to purchase, the use of fintech is allowing banks to become more innovative with their products and services.

4. Customer-first Focus

Many banks are segmenting consumer demographics, behavior and attitudes into different categories to show customers that they understand them and can address their specific financial needs and concerns. As a result, banks have the opportunity to develop stronger relationships and confidence with them.

5. New Products

As more Millennials enter or grow within the banking industry, banks should be aware that generational perspectives can change the types of products and services they expect to be offered. Banks should continuously review consumer wants and needs so new products and services can be developed.

In a world where technology is ever-changing, it’s important to create and offer opportunities to consumers that will help them choose your bank. While this list of ideas may be challenging to banks, keeping up with today’s technology will help strengthen relationships with customers and is a solid way to make sure your bank is not left behind.

Subscribe to L&S Blog Updates