Consumer Needs are at the Forefront of Digital Transformation in Banking
‘Going digital’ applies to so much more than just using social media or moving data to cloud devices. In the banking sector, it relates to a complete overhaul of the way banks and credit unions understand, contact and please customers– the digitization in banking as they call it.
The first step to a successful digital transformation in the banking sector starts with an understanding of the attitudes, desires, and choices of digital consumers. It then leads to major consumer-centered improvements in order to meet these needs to retain customers and stay ahead of the competition.
It may look like banking institutions are lockstep in their advancement towards goals, but consumers are continuously raising expectations, which means a complete change of approach is in order. It’s especially important to be aware of consumer needs in a time when leaving a bank and opening a new account elsewhere is an easy process– an aspect every good new age banking course will endeavour to cover.
So what does today’s financial customer want?
The top five consumer desires, according to recent surveys, are:
- Rewards for business
- Simplification of life with 24/7 access to balance
- The bank’s knowledge of them as a customer and an individual
- The bank looking out for them with wealth-building advice
- The anticipation of needs and insights on how to spend budgets and save money
Rewards for business and transactions
Banks have become a lot more than a place to deposit your money and garner interest– they’re now a place where people come to do business, transact for loans, send and receive money and get personalized offers. A big ask of consumers today is that they want to be rewarded for their business, by way of reward programs through points, vouchers, coupons, gifts or discounts.
Mobile access to services
As explained in many a new age banking course, today’s digital customer wants to be able to access their balance and keep track of expenditure no matter where they are. To keep up with this demand, banks are releasing apps with increasingly intelligent features like chatbots and voice assistants. An added perk that banks can provide is allowing customers to look at spending patterns and make use of money management and budgeting tools.
A stand-out indication of the change in consumer mentality within the financial and banking sectors is that customers at their bank or credit union don't want to be just a number anymore. They want to be recognized as individuals with varying needs and preferences, not even categories or target groups as was once the process of ‘personalization’.
Switch to digital channels
Gone are the days when people head to their banks to directly withdraw cash or make other monetary transactions. Today, consumers prefer digital channels like tablets, laptops, and smartphones– meeting face-to-face comes second in the list, followed by phone banking. This represents how the omnichannel need of a consumer is fast arising, regardless of the age or income.
Consumers today want personalization and digitization and want their hand in hand. Any level of customer dissatisfaction can be analyzed to understand the root cause and identify if there is a new age banking solution. This will help any bank gain favor among the masses, specifically the digital natives.