How Is Digital Banking Enhancing Customer Experience
Breaking The Myths About Hyperautomation
Nubank, the Brazilian neobank and the largest fintech bank in Latin America is pioneering the digital-first era of banking and transforming the industry from stodgy and slow-moving to innovative, dynamic, and customer-centric. It is one of the largest digital banking platforms in the world, offering faster and lower-cost products than traditional banks, making it an attractive option for customers seeking a modern banking experience.
As digital banking gains traction, competition within the industry intensifies. Providing a personalized customer experience has become a crucial differentiator, with banks striving to offer tailored services that meet their customers’ unique needs.
Customer-centric strategies, once exclusive to major B2C players like Amazon and Google, are now revolutionizing the B2B digital customer experience landscape, especially in the banking industry.
Multiple reports suggest that investing in digital customer experience technologies can yield up to a 15% increase in revenue and a 20% decrease in customer churn. Furthermore, strong customer experience outperforms competitors by almost three times in terms of revenue growth, according to several banks.
We invited some of the most knowledgeable experts in the banking industry to help us gain a deeper understanding of customer needs and expectations in the digital banking era. Look at the moderator and panelist details.
– Brett Fish, Associate Vice President, InfoVision (Moderator)
– Jonas Ng, Chief Operating Officer, Laurel Road – Key Bank
– Patricia Korth-McDonnell, Chief Experience Officer, Lendio
– Sanja Cancar-Todorovic, Head of Enterprise Procurement, Home Capital Group Inc
– Dr. John Almasan, Senior Managing Director | Head of ClienTech and AI, TIAA
– Tracy Moore, Director of Strategy, Americas Region, Fenergo
Here is a summary of the brilliant panel discussion that followed.
Best ways to improve the banking customer experience
By improving their customer experience index score by a single point, traditional retail banks have the potential to generate an additional $144 million in annual revenue.
The influence of tech companies has raised the bar for customer expectations when it comes to banking, and customers now demand an experience that is easy, fast, simple, personalized, transparent, and secure.
Then how to improve the banking customer experience amidst the expectations?
According to the experts, banks need to focus on identifying friction in the onboarding process, creating natural conversations, opening themselves up to third-party products, improving mobile banking apps, focusing on digital channels with higher net promoter scores, empowering customers to get information, and addressing customers’ unique needs when notable events occur in their lives.
Some simple ways, you could improve your banking customer experience:
- Simplify the account opening process for new customers
- Implement conversational interfaces for better customer interactions
- Embrace the concept of open banking for improved financial services
- Adopt the intuitiveness of mobile apps
- Encourage customers to use digital channels instead of IVR
- Offer self-service options to customers for greater convenience and
- Link financial products to significant life events to better meet customer needs.
Customer experience in digital banking: Trends to watch out
Technologies that are changing the banking sector in 2023.
1. Mobile Banking
PayPal, Venmo, Zelle, and Google Pay are a few of the mobile banking apps that you might be familiar with. Isn’t it?
Tedious banking transactions that once demanded thick bandwidth of time are now handy, thanks to mobile banking. Mobile banking is the most current way for customers to access their bank accounts and the usage is only expected to rapidly increase in 2023. Top banks are investing heavily in mobile banking apps to provide customers with a seamless and convenient experience.
Advanced technology-imbibed features like biometric authentication, AI-powered chatbots, and personalized financial advice are just adding to the benefits of mobile banking. The adoption of technologies like facial recognition and fingerprint scanning is making it more secure.
2. Digital Currencies
Digital currencies like Bitcoin, Ethereum, and Ripple have gained significant attention in recent years. In 2023, we expect to see digital currencies play a more significant role in the banking sector. Many banks are already exploring the potential of digital currencies and blockchain technology.
The adoption of digital currencies can lead to a decrease in transaction fees and faster settlement times, while also promoting financial inclusivity, especially for individuals without access to conventional banking services. Additionally, digital currencies are expected to impact international payments by eliminating intermediaries and shortening transaction durations.
3. Artificial Intelligence
Artificial intelligence (AI) is already being used in the banking sector to improve customer experience and enhance operational efficiency. In 2023, we anticipate an increase in banks adopting AI to automate processes such as fraud detection, credit risk assessment, and customer service.
AI-powered chatbots are becoming more prevalent, providing customers with instant responses to their queries. These chatbots can also provide personalized financial advice and help customers make informed decisions. Additionally, AI-powered fraud detection systems can detect fraudulent activity in real-time, preventing financial losses and protecting customers’ data.
4. Open Banking
Open banking enables customers to securely share their financial data with third-party providers through APIs provided by banks, resulting in better access to innovative financial products and services.
In 2023, we expect to see more banks adopting open banking systems, providing customers with more choices and options. Open banking can also help banks create new revenue streams by providing access to a broader customer base.
Do you remember the cyber-attack that hit Finastra, a financial services software provider for numerous banks globally, in 2020? The attack forced Finastra to shut down its servers, causing temporary service disruptions for its client banks. This incident highlights the crucial need for banks and financial institutions to implement strong cybersecurity measures to safeguard their systems and customers’ sensitive data.
In 2023, we expect to see more banks investing heavily in cybersecurity measures to protect their customers’ data and assets.
Banks are already using technologies like biometric authentication and encryption to secure customer data. In the future, we expect to see the adoption of more advanced technologies like blockchain-based security solutions and AI-powered cybersecurity systems.
Technology is changing the banking sector in significant ways, making it more digital, convenient, and secure. Mobile banking, digital currencies, AI, open banking, and cybersecurity are just a few examples of how technology is transforming the industry. Banks that adopt these technologies are likely to provide their customers with a better experience and gain a competitive advantage in the market.
Learn how to deliver personalized banking experiences that exceed their expectations by watching this video:
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