What might banking look like 3 years from now? PwC offers five different scenarios, which include ever-increasing customer expectations, growth of innovative technologies, continued margin pressure, ongoing consolidation as banks seek to optimize technology, and more complex regulations.
Survival for community banks may hinge on their ability to leverage their bank charter, which is their most decisive competitive advantage. Partnerships with fintechs and other non-banks can unlock new opportunities, and will also allow banks to better serve their current markets by improving the bank’s tech infrastructure and service offerings.
Enhancing call centers with an integrated digital customer service platform eliminates technology silos and provide a much more robust customer service experience. This includes adding chatbots and virtual assistants that use AI to quickly answer routine customer questions, leaving call center representatives time to focus on more complex inquiries and advisory opportunities.
Retaining good talent can be difficult. Many companies pay scant attention to their onboarding process, despite statistics showing that a third of new hires typically leave within 90 days. A focus on retention starts with an effective hiring process in which there is transparency regarding the responsibilities of the position and the values of the company. Other practices to consider during that critical first 90-day period are taking time to introduce the new employee to coworkers across the company, assigning a mentor to help them learn the company culture, providing sufficient training, and including financial incentives that kick in at the end of the introductory period.
Small and midsize businesses (SMBs) are an increasingly vital market. Yet traditional banks are at risk of losing this business to fintech and neobank competitors. Banks tend to approach the market by focusing on product sales, while the fintechs focus more on providing companies with tools they need to help them manage their day-to-day business. To compete effectively, banks must better utilize the data they already have to proactively offer meaningful insights to their customers.
Rather than following the lead of major corporations when developing social media marketing, companies may look instead to collegiate brands. They are masters of the art of creating identities that people want to apply to become a part of. Providing meaningful educational content and guidance on issues of current concern is likely to be a much more effective approach to gaining followers than focusing on product promotions.
‘Leaders on Loan’ programs can not only help outside businesses and other organizations, but they can also enhance the perspectives of the participating managers and inject new ideas into the company. “If you’re not learning, you’re not growing.” Leader sharing programs allow managers to employ their skills in different settings, while at the same time developing their problem-solving abilities and learning new ways of thinking.
