Banking today is about continuous improvement. When US Bank thinks about ‘customer experience’ they view it as transcending ‘digital’ versus ‘human’, melding the two to create one cohesive experience. The bank is continually working to combine data and technology, along with results from “co-creation” activities with users, to create new ways to engage with their customers.
Neobanks are beginning to struggle between two imperatives: attracting customers and continuing to exist. Investor funding is becoming harder to come by, putting pressure on companies to begin to turn a profit. Having creative, unusual products is great, but now they must pivot to a sustainable growth model.
Is it better to invest in overhauling existing mobile/online channels, or create an entirely new digital-only brand? The answer depends on the goals of the digital initiative and how they fit into the existing strategy of the company. Spinning up a new digital bank brand can work well when targeting a different customer segment or expanding outside of the bank’s traditional market area.
Most legacy bank core systems were not designed to deliver services directly to a mobile device. They were built for the era of branch banking and have data and functionality locked into monolithic systems. This makes information and functionality difficult to access. Creating and using Application Programming Interfaces (APIs) across legacy core systems can simplify service delivery and improve overall efficiency. The ultimate solution, of course, is to migrate to a modern core system . . .
The majority of the people in the US have little or no understanding of the metaverse according to a Forrester study. And most of those who are familiar with the term can’t confidently explain what it is. That said, the concept does appear to have legitimate use cases and should be considered as part of the longer-term innovation agenda for financial institutions.
