It’s no secret that the banking industry has been on the path to digital transformation for the past few years, with the impetus to transform coming from multiple factors. There are the tech savvy millennial customers and their evolved expectations of instant outcomes for any service they engage with. Then there is the growing competition from companies such as Amazon, Uber, Google, and Apple that are heavily engaged in different parts of the banking value chain ranging from loans to payments. There is also a list of pure play companies (Paypal, Venmo) that are putting forth made-to-order banking alternatives for Millennial and Gen Z audiences in order to disrupt a slow moving market. Clearly, traditional banks are finding themselves in an increasingly vulnerable position.
The good news is that banks know the challenges they are facing and recognize what needs to be done. According to the latest report on 2018 Retail Banking Trends, banks, credit unions and the supplier community stated the following as their top 3 trends:
The silver lining here is that banks understand what needs to be done to differentiate themselves to win the business and loyalty of this new generation of consumers. Now, more than ever, it is critical for them to put their digital transformation plans into high gear. The top 3 trends mentioned above clearly show that to be successful, banks must deliver a seamless, highly personalized multichannel engagement and experience to their customers, when they want it and how they want it. To achieve this goal, banks need to:
The framework of a real-time economy demands this level of contextual responsiveness. To read more about how banks can achieve such contextual relevance and real-time personalization, download our latest whitepaper A New Paradigm in Digital Banking: AI Powered Customer Engagement.