The digital banking revolution is in full swing – but as banks invest in digital banking technology, they must ensure they’re keeping their customers’ wants and needs at the forefront of their thinking.
In an ideal world, a customer would walk into a bank and staff would be able to know the reason they’ve arrived before they say a word. This is still somewhat unfathomable, but it is possible with online banking, which is what makes it such a powerful channel for banks.
The banks that will thrive in the future will be able to anticipate what their customers want, and provide financial solutions in advance of important life events.
Consumers themselves are happy to do their bit to support banks in doing this – 91% of individuals say they are willing to give their personal data to banks in exchange for an improved service, according to IBM.
So, what do customers want from their digital banks right now?
While consumers are happy to give banks permission to use their data, this isn’t always translating into a superior service. Why? It comes back to banks being unable to realize the true value of data, largely due to technology silos and the lack of interoperability that those legacy systems cause.
However, if banks are to understand their customers well enough to be able to predict future events from their transactional data, they’ve got to find a way to harness it.
Luckily for banks, the solution lies in third-party data management tools, which can provide customer insights without having to rip the IT stack apart.
It goes without saying that banks are better placed than anyone to help customers manage their finances. So, why is it still not yet the norm? More often than not, customers have to do their own cash flow analysis to see where they can save money and avoid being overdrawn.
It’s little surprise, then, that 41% of consumers want a more personalized banking experience, and for their bank to offer financial information to help them save more money, as per Chase research.
Banks really have no excuse, with white-label banking solutions now available that are designed to help your customers understand their balance history and project future cash flow.
In the surge towards digital, banks must be careful not to turn banking into a commodity. So, in their digitization efforts, banks need to make sure that they don’t lose the human touch.
In a survey for CYBG, 81% of consumers said that they would still want to visit a branch, or speak to someone, no matter how advanced technology gets.
With as many as 40,000 branches predicted to close across Europe over the next three years, banks must find a way to retain their human element, be it through video banking or hyper-personalized messaging.
51% of bankers agree that financial digital advisors that help customers save will increase engagement
Harboring all that transactional data, banks have the potential to do so much more than they are right now – even helping their customers to be better civilians.
Climate change is the biggest challenge we’re all facing right now and banks have a vital role to play in reducing carbon emissions, by giving their customers the ability to track their carbon footprint.
As a business opportunity, providing a carbon calculator means empowering customers to act on climate change, thus driving engagement and loyalty. Customers have a compelling reason to engage with their bank beyond checking their balance and sending payments.
Carbon Insight is a carbon calculator made specifically for banks. All you need to do is plug in and enjoy the benefits. Find out more about Carbon Insight, plus Meniga’s other white-label banking products which help banks to give more of what customers want.