Virtual payment card use is increasing rapidly. These one-time use electronic versions of credit cards reduce fraud risk for consumers. They are also popular with businesses to manage and track expenditures, along with the risk mitigation benefits.
Forrester recently released its “Top Emerging Technologies in Banking in 2022” report that shares their perspectives on what’s hot and what’s not in banking technology. The “what’s hot” list includes machine learning, 5G, and APIs (although they have been around for a long time). They are not enthusiastic about the metaverse and IoT though. Their ‘keep on the radar’ list includes two other forms of AI – natural language generation and deep learning.
ESG is becoming increasingly important from a regulatory perspective and is also a growing concern of customers. A PwC survey indicated that an overwhelming majority of both consumers and employees say they’re more likely to buy from or work for companies that invest in ESG issues. ESG initiatives can include reaching out to underserved markets and customer groups, and providing sustainable product offerings.
It is essential to create a quality mobile banking experience. A review of app store comments from 18 highly-rated institutions revealed issues with app functionality and speed, bad call center/branch support, poorly designed user interfaces, and burdensome security routines. User online ratings and comments should not be ignored. This study pointed to the need for a robust testing program, keeping the user interface simple, making sure the integration with third-party applications is seamless, and not going overboard with in-app marketing messages.
The pandemic has caused many Americans to reconsider their work and economic priorities. There is a much greater focus now on financial resilience. Financial institutions can support this need by offering greater financial education and advice, and by providing good digital banking tools to help customers understand and manage their financial lives.
A survey by Citizens Bank reveals that investment in digital banking capabilities is essential, but focusing on experiential components and putting humans at the center of customer experience (CX) must also be priorities. Key takeaways include the importance of talking with customers in a language they understand, delivering bite-sized but relevant insights, creating positive experiences across all touchpoints, and using automation, data, and analytics to streamline processes.
Financial institutions need to adjust their thinking when it comes to attracting new customers. There are significant differences by age in terms of how loyal customers are to their existing bank or credit union, how they go about searching for new products, their willingness to do business with fintechs and digital banks, and the factors they value most when considering a new service provider. Understanding these differences is essential in order to attract younger customers.
CHUCK is a new open payment solution designed to compete with closed networks like Zelle, PayPal and Venmo. Created by a consortium of community banks, CHUCK eliminates the need for the sender and receiver of a P2P transaction to be on the same network. This not only simplifies the customer experience, but it also can also be a lower-cost payment alternative for participating institutions.
Customers of banks and credit unions expect consistent and contextual engagement. They seek a quality, personalized experience to help them reach their financial goals as easily as possible. Many bankers understand the importance of this but struggle to deliver on those customer expectations. Part of the issue is that many institutions are trying to tackle the problem with outdated technology and poor data analytics. Other challenges include providing an easy account opening and onboarding experience, the ability to offer financial wellness tools, proactively providing advice and offers, and providing employees with the analytics they need to adequately support customers.
