The Future of Digital Banking: 5 Emerging Trends in 2018
If last year taught the financial industry anything, it’s that transitioning into a digital bank is no longer an option. As the first quarter of 2018 has come and gone, consumer expectations for a more seamless banking experience have continued to increase exponentially.
Demand for innovation has led to financial institutions seeking out better solutions to digitize their offerings while optimizing their workflow. Several resolutions have already been made for the rest of the year, highlighting advancements in digital banking technology and expected areas of growth.
Here are five emerging trends in 2018 that paint the future of online banking.
A Better Digital Experience for Customers
Over the years, customers have come to expect a much better experience when it comes to how they interact with their financial institutions. Online shopping trends have also changed, supporting the need for better transactional capabilities through the use of smartphones and other mobile devices.
Financial institutions are now expected to improve their customer banking experiences. Developing new mobile banking applications with intuitive interfaces is great way to keep customers engaged while providing them with valuable tools and services. Another great way to improve the customer experience is by utilizing chatbots on mobile and desktop banking applications. These automated customer service solutions help provide the answers customers need while lowering costs associated with hiring larger dedicated support teams.
Enhancement of Data Analytics and Reporting Capabilities
Banking institutions should now be focused on incorporating advanced analytics and machine learning technology into their systems. Financial institutions should implement personalized, contextual interactions for their customers through the use of CEM (Customer Experience Management) tools and services. This can help to develop and nurture strategic business relationships more than ever before. Rather than focusing on business offerings that only benefit the banking institutions themselves, machine learning analytics can generate highly-targeted marketing campaigns that present new services to businesses they will likely use and purchase.
Testing and Implementation of Advanced Technologies
In addition to the incorporation of AI technology for advanced automation and analytics, blockchain technology has opened up a whole new world of transactional efficiency for banking institutions.
According to Roberto Ferrari, Chief Digital and Innovation Officer at Mediobanca Group: “2018 will see developments across the banking industry, including a more mature application of fintech solutions, greater use of digital payments, the opening up of banking thanks to API built architectures, the first significant progress with blockchain technology, and the harnessing of AI and RPA solutions. These changes will all occur as global tech giants (including those from China) change the financial services battleground.”
Taking this into consideration, banks should continue to capitalize on the availability of newer technology to assist with a faster, more efficient banking experience for customers.
Automation of Core Business Processes
There has been a drastic shift in the importance of maintaining better back-office processes. By improving their IT architecture, financial companies can automate many of the value-adding tasks they are currently handling, allowing them to concentrate on the implementation and execution of advanced technologies to continue improving the customer’s digital experience
Creating Partnerships with New Digital Providers
With the advancements in newer financial technology, 88% of banking institutions are starting to fear to lose their revenue to third-party companies. Rather than going against the grain, banking institutions should explore opportunities to create strategic partnerships with fintech startups and established businesses. By aligning financial goals and strategies, fintech collaboration can help improve the operational efficiency of banking institutions, while keeping customers engaged with the newest technologies and services.
Financial institutions are continuing to adopt newer technologies to advance their digital banking efforts. In order to stay relevant when competing with larger industry titans like Google, Facebook, and Apple, banks need to invest in the right tools and services for their customers. Proactive planning is key for banking institutions making these investments, to ensure customers stay loyal and constantly engaged with their banks.
Digital banking is the future!
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