Top 5 Consumer Trends In Digital Banking For 2023
The recent pandemic led to longer lockdowns, which then caused people to rapidly adopt digital banking methods that they were formerly unwilling to use. Mobile apps became the primary means of digital payments during this time. But businesses went through some major changes in order to make digitalization possible and profitable for them.
In today’s market, customers want more than just a product or service; they seek empathy, loyalty, and emotional connection from brands. With this in mind, it is time for businesses to change the way they operate and contribute to society as a whole. Banks will especially have to broaden their horizons and provide digital experiences that are rich with emotion. Here are five digital banking trends you need to implement in your online bank the following year.
Implement A Customer-Centric Culture
Companies that prioritize digitization can smoothly transition to accommodate customer demands. This might include removing outdated processes, adopting state-of-the-art technologies, and customizing products according to client requirements. In today’s business environment, company culture plays a significant role in success. Even the most diligently planned digital transformation can come crashing down if employees don’t maintain a customer-centric focus.
For example, nearly 4 out of 5 US customers want brands to understand and care about them, and almost 9 out of 10 customers will only engage with companies that exceed their expectations.
Having a customer-centered digital journey is something that all companies now need to focus on. This can be accomplished easily enough by simply changing the way we think and some careful planning. Every employee should contribute ideas with the common goal of solving customer problems. While it may be difficult for older establishments to make these kinds of changes rapidly, online banks need to prioritize customer centricity if it wishes to succeed.
Address Existing Gaps
There are numerous occasions where the customer’s expectations and what the brand can provide differ, often leading to customers abandoning the brand altogether. In today’s digitized world, it has become very easy for customers to switch banks with just a few clicks. If financial institutions want to be successful in 2023, they need to close these gaps between customer expectations and reality.
Build An Emotional Connection With Clients
At present, purpose and empathy are the two most valuable currencies for a brand. Many people are experiencing pandemic fatigue due to working from home in isolation. With more and more processes going digital, people feel even less connected. Building an emotional connection with customers is therefore crucial.
However, the banking industry usually avoids such emotional attachments to maintain its reputation. Throughout 2022, fintech companies were creating customized experiences for customers based on these emotional connections. Now it’s not only about using “first name” in their fintech marketing strategies but making sure the entire digital experience is personalized.
Online banks still have a long way to go before they can provide the same seamless digital experiences as platforms like Facebook or YouTube. However, what they can do is take inspiration from these other platforms in order to build an emotional connection with their users.
Measure Metrics And Adjust
Customer experience is more important than ever, so online banks are shifting their focus to metrics that judge performance based on user experience. This means that instead of simply looking at a company’s operational efficiency, they will also take into account how easy and comfortable it is for customers to use their products. User feedback will be taken into consideration when making these decisions, which includes comments, ratings, and recommendations from users themselves.
Online banks can switch to these new metrics without incurring many new expenses. These metrics could include anything from app store ratings and customer lifetime value to net promoter scores and active customer volume.
Offer Contextual Solutions
By utilizing tools such as big data analytics, online banks can offer a more personalized experience to each customer. For example, AI could be used to monitor spending activity and provide recommendations accordingly. In addition, online banks that deliver contextual experiences can notify users when action needs to take place—whether it is for financial health or future predictions.
The pandemic has served as a reminder to banks and other financial institutions of their purpose: to help and serve their clients. Customers now expect more than ever before from the institutions they trust with their money, and digital banking is one way to meet those expectations. This shift presented an opportunity for banks to elevate their purpose and make the digital experience more personal, empathetic, and understanding.