There’s no question — 2020 has certainly been different. In trying to understand the relationship between banks and consumers in this challenging year, it is vital for banks to rethink how to serve their customers. How have their needs changed? Discovering this is a matter of examining how existing technology and banking fail to meet consumer needs now and beyond, and how banks can adapt strategically to address their consumers’ pain points, and evolve.
2020 Consumer Pain Points
Today’s consumer pain points existed before 2020, but the pandemic has brought home the importance of providing a friction-free, omnichannel experience for banking customers. A bank that does not provide first-rate digital channels for their consumers will lose the battle to those that can.
Consumers demand and deserve the most efficient tech available in their banking platforms. They want a user-first experience. Unfortunately, too many of them find their banks stuck with legacy applications and platforms, or non-integrated systems. Applications also can be integrated so closely into the system that untangling them is a virtual impossibility. Older applications become unusable or lack support. A present infrastructure cannot handle new, in-demand technologies.
Responding to Pain Points
Responding to consumer pain points means identifying just what those issues are and then determining a means to resolve them. Start by examining all aspects of the consumer experience. At what points in the process do consumers have to put up with long waiting times? Are there areas where they must re-enter previously submitted information? Where do they have to switch interaction channels? Such pain points cannot be fixed unless they are clearly recognized and understood.
Check with the bank’s call center for tech issue complaints. What problems are reported most frequently, and which affect consumer experience the most? Which are the easiest fixes, and which may require an entirely new platform? In 2020, you do not want 2015 tech.
Technology and Banking
Fintech, or financial technology, involves new technologies designed to improve the use and automation of financial activities. Depositing a check through your phone? That’s fintech. So are crowdfunding platforms, mobile payments, robo-advising, and blockchain and cryptocurrency, to name a few examples.
Banks are not tech companies, and tech companies are not banks. But the banking’s already-huge dependence on tech increases daily. The millennial generation is comfortable using banking competitors such as peer-to-peer apps like Venmo, ApplePay, and Google Pay. Keep in mind that the tech behind these popular apps is relatively simple, but many banks offer no alternatives. The future belongs to banks that can adopt a fintech model while providing the benefits and services consumers have come to rely on — and do so competitively.
It is safe to say that the events of 2020 — primarily the pandemic — have shifted the way people and companies work and conduct business. The world has changed profoundly, and we can expect these disruptions to continue.
Is there a place for traditional banking in this new world? Absolutely — but this is not a time to play defense. The future belongs to those banks that can shape the fintech future, not those trying to play catch-up. In the past, change in the traditional banking industry occurred slowly. Perhaps that is the greatest disruption of all, since future change will happen at lightning speed. Banks must prepare.
At Lumin Digital, our mission involves leveraging cloud-based technology to maximize user engagement for banks and other financial institutions. We accomplish this through integration with third-party providers, predictive analytics, and 1:1 content delivery. Our platform allows banks not only to innovate quickly, but to do so with little risk. Our safe, secure technology lets banks introduce new features without any service interruption. If you would like to know more about how Lumin Digital can change your customer experience while offering unparalleled support and service, contact us today.