Retail banking is undergoing a period of rapid transformation. Changes in customer expectations, accelerated by the rise of the millennial generation and the rapid adoption of new digital technologies, are forcing financial institutions of all asset sizes to reconsider how they can best meet their customers’ needs.
An inefficient back-office, saddled with aging legacy systems and poor integration across product and business lines, prevents many institutions from successfully adapting to these tectonic shifts in the retail banking landscape. Without the ability to capture a full view of the customer relationship and respond to their needs and desires in real-time, banks will continue to lose an increasingly demanding and fickle customer base to their competitors.
Millennials in particular, a group that accounted for nearly 22% of the US population in 2020, are increasingly choosing banks that offer the latest technology, such as immediate access to their accounts with the touch of a finger and a full picture of their finances at any time of the day or night. As it becomes easier to transact and do business online and through mobile channels, loyalty to a single institution is on the decline. Millennials are extremely sensitive to any missteps or inattentiveness from their service providers and are willing to jump ship over even the slightest transgressions.
With today’s diverse, stratified and increasingly demanding customer base, financial institutions must find a way to serve each customer’s individual needs, millennial and otherwise, through their preferred channels. This challenge calls for highly personalized, yet efficient and cost-effective solutions.
The good news is that there are multiple ways to achieve this ideal, including:
- Customer-focused strategies that use data analytics to determine financial-services preferences, economic demographics and predicted behavior so offers can be timely and individualized;
- Investments in scalable, secure technology, including the cloud; and
- Employing a true single platform across all lines of business to build process efficiency and create a seamless, outstanding customer experience.
Transforming your retail bank will allow financial institutions to differentiate themselves from their competitors, including both traditional institutions and marketplace lenders, maximize revenue opportunities and serve the next generation of customers.
As more financial institutions embrace the new vision of retail banking, the customer experience will be revolutionized. Customers will receive personalized recommendations relevant to their specific needs, based on their current lifecycle stage and preferred communication medium. The retail branch will be transformed into a profitable financial solution hub, designed to add value, promote loyalty and build relationships instead of processing basic, resource-expending transactions.
This new reality will be facilitated through an end-to-end, single platform solution that breaks down silos among products, divisions and business lines, and redesigned back-office processes for maximum efficiency, transparency and flexibility. The result will be a 360-degree view of the customer relationship, and an engaged and knowledgeable staff ready and prepared to help customers achieve their financial dream.
To learn more about the current trends in retail banking and ideas that will help your financial institution transform its retail bank into a profit center and source of loyal, long-term customer relationships, download our white paper “A New Age of Retail Banking” today: https://www.ncino.com/news/whitepapers/retail