For years, financial services experts emphasized the need for financial institutions (FIs) to adopt technology to keep pace with changing customer expectations and improve organizational efficiencies. Yet many FIs are slow to show progress when it comes to digital transformation.
The Covid-19 pandemic proved to be a catalyst event, forcing FIs to quickly reevaluate their ability to provide financial support and services through their existing systems. As people were forced to bank primarily online, the FIs already equipped to serve customers digitally, or those able to quickly adapt, fared better than those using antiquated, disparate systems. Many of the digital-forward FIs were able to maintain operations and even gain new customers despite the challenging environment.
To truly create a holistic digital experience that meets customer expectations, FIs must consider the following when forming a strategy for approaching digital transformation: people, process, and technology.
In a recent digital transformation survey by Deloitte, seventy-five percent of the largest FIs stated their top priority is improving customer experience, and a second priority for FIs with less than $10 billion in assets. While younger generations may be natively digital-first, consumer expectations are rising for both physical and digital channels across generations in order to retain and grow business.
The most competitive FIs understand that operational efficiency produces more than just a reduction of costs. It is deeply intertwined with creating a better experience for both their customers and employees. FIs taking a holistic approach of ensuring a seamless and frictionless experience and enabling employees to serve customers on a more personal level can change how customers perceive their relationship with them. The FI can become a more central, essential and positive part of their customer’s lives rather than potentially being a reluctant utility.
Ideally, FIs should look for technology solutions that can integrate with core banking systems to modernize their infrastructure, allowing siloed data to be integrated in a single platform. FIs that consolidate data across a single platform can create a more seamless customer experience throughout the entire customer lifecycle. This platform allows for a single source of truth for customer information and insights, allowing FIs to better serve its customers especially when working across multiple lines of business. It also improves information and insight into customers as they work across lines of business making cross-selling easier and more effective.
How has a strong digital strategy for consumer banking affected institutions?
To learn more about the evolving digital landscape among financial institutions and how you can approach a digital strategy that includes people, process and technology, download the “Digital Acceleration in Consumer Banking” white paper now.
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