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Digitalization is Transforming Banking: Are You Ready?

Author: Shanthi Rajaram

As with most businesses, banks have always faced the challenge of how to retain and add increasing value to existing clients while trying to attract new ones.

Combine those concerns with today’s lightning-fast speed of information and business operations along with the demands for increased online services, mobile capabilities, and cybersecurity and you’re looking at a banking world that is undergoing drastic changes. Consider these trends:

  • Only 30% of bank consumers 35 or younger chose their bank based on branch location, according to PWC’s 2019 Consumer Digital Banking Survey
  • 1 in 3 Gen Zers with a loan used an online lender — a 2.2X increase from 2018
  • Individuals 35 and younger are more than twice as likely to use an online lender, and they are entering their prime borrowing years

The New Normal

What our clients are telling us is that due to increased technological capabilities, their customers are demanding easier, faster, and better solutions. Quite simply, the banking mentality and methods of yesterday aren’t going to be attractive or viable for clients today and tomorrow. The new look of banking will be:

  • Personal. Customers want customization that seamlessly adapts to their worlds.
  • Faster. If customers have to wait too long, they go elsewhere for services.
  • Easier. Customers don’t want complicated processes or they’ll look for alternatives.  
  • Integrated. Services that work within a cohesive system are much more inviting.
  • Mobile. Customers want to do their banking from their phones. Period.
  • Innovative. The more options and tools available, the better the banking experience.
  • Enviro-friendly. Customers today care about the planet. Electronic over paper.

Are you ready?

The issue in banking today isn’t about if a digital revolution is coming. It’s already here and customers are expecting its availability. The real issue is if the organization is ready for it or not. Does it have the philosophy and mindset for the upcoming change? Does it have the tools and technology to meet customer demands? Does it have the staff and expertise to execute all that will be required?

What are your greatest personnel and system needs in this new world of banking?

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