The Future of Banking Requires a New Perspective, and it Starts with Digital Engagement
A few months into the economic fallout from coronavirus, we see that no industry has been spared, and many of them will never look the same again. Curbside pickup for retail is commonplace, happy hour is delivered to your door, entertainment is accessible without leaving the house, and business once conducted in person or on the phone now takes place regularly on video chats.
One industry we know first-hand is financial. The industry already knew it was digital or die, but there was still a dragging of the feet for many banks and credit unions. In a matter of only a few weeks, the world of banking has experienced a level of disruption that will change everything that had been the norm in financial services. There has not only been a major change in the way financial institutions conduct business but in how employees work, and the way consumers manage their finances.
Now more than ever, we need to understand the way consumers expect their financial institution to support their needs. This includes the way banks and credit unions use data, artificial intelligence and technology to impact marketing, innovation and the online delivery of products and services.
High-impact, digital-user journeys are key to building your strategy and successfully delivering a personalized digital experience.
In the near future, we’ll see more digital banking apps offering a streamlined and simplified user experience with greater focus on financial literacy. This will open digital banking to customer segments that are less technologically savvy.
It is less about servicing and more about engagement. Customers are growing accustomed to spending far less time in branches. Educating them on products and services that solve their financial challenges will help compensate what would have been organically sold in an in-branch experience.
In a world where the business model of selling and marketing is virtual, banks will move from simple transactional apps used for checking account balances or making payments and transfers to those enabling deeper engagement.
The benefits of an outstanding digital engagement experience will be quantifiable. According to research from McKinsey & Co., customers who are highly satisfied with their digital experiences are 2½ times more likely to open new accounts with their bank than those who are merely satisfied. Highly satisfied customers are also less sensitive to price, and they generate more positive word-of-mouth.
Digital engagement has been on the horizon for some time now, and our “new norm” makes it imperative. Let Zehnder help you build a digital engagement strategy that goes beyond simple online marketing. Get in touch with us at Beyond@z-comm.com.