Many traditional institutions struggle with digital transformation. Suggestions to improve the odds of success include focusing on results rather than actions, quickly changing directions if necessary, and not making the mistake of assuming that the current success of a traditional business model will equate to long-term viability. It’s also important to recognize that transformation is an enterprise-wide activity. Strive to make the transformation job exciting to attract new talent, and don’t overlook the opportunities associated with Banking as a Service.
Subscriptions for banking services seem to be gaining ground. Younger customers in particular have become accustomed to subscribing to a wide variety of services. Adopting a subscription model can build upon the trust created by your brand and can add value to the customer through transparency, flexibility, and personalization.
Creating a personalized digital service experience is essential as the majority of customer interactions occur through digital channels. That service experience can become a key point of brand differentiation. Personalized digital service is the bridge needed to connect with customers through both digital and human channels.
The metaverse is considered the new frontier in technology that combines augmented and virtual reality to create immersive new experiences. Pundits anticipate business opportunities in the metaverse to skyrocket in the coming years. Some major banks and investment companies are building out their presence on the platform, seeing this as an opportunity to participate in the future of e-commerce. What can smaller institutions do? Realistically, most can only monitor developments at this point.
40% of consumers think their future bank will be a tech company. No longer ‘optional’, digital banking is a must-have that drives growth, loyalty, and positive experiences. Fintech and big tech companies excel in creating clear, intuitive, comprehensive, and personalized service experiences – something every financial institution must be able to replicate if they wish to retain their customer base.
